As a 13-year old, Ritz Naygrow delivered newspapers to Mercy Hospital. The year was 1933, and the hospital had been at its current site on J Street for just eight years. Little did Ritz know the impact that place would have on his life over the years – or the remarkable impact he would have on it, some 70 years later.

Ritz describes himself as a kid who grew up with very little. His mother died when he was 4 years old and his father was absent for most of his youth, leaving Ritz to find his own way as a young man in Sacramento. Ritz married his sweetheart, June, and they built a

HorizonsM e r c y f o u n d a t i o n

President’s messageWhen the calendar turns to a new year, many people take the opportunity to set goals both personally and professionally. At Mercy Foundation, we’ve done the same.

We have launched several new initiatives to support the ministries of the Sisters of Mercy. One such project is a new hermitage at the Mercy Retreat Center in Auburn to benefit the Sisters and many others. In this issue, you will learn about Sister Susan McCarthy and her vision for this special place of retreat.

If you or someone you know suffers from chronic pain, you will be pleased to know that Dignity Health is committed to increasing services provided through its Pain Management Clinic. In collaboration with Mercy Foundation's fundraising efforts, the clinic will be able to expand to serve many more people in need.

We also vigorously continue to raise philanthropic support for our major initiatives that include the Mercy Cancer Institute, Mercy Neurological Institute, Mercy Heart & Vascular Institute and Cristo Rey High School Sacramento.

Of course, none of this is possible without you. Each life that is changed, each need that is met through the ministries of the Sisters, is thanks to your support and commitment. Thank you for your generosity and partnership in our efforts.

President and CEO

Throughout all the chapters in his life, one constant has been the high quality, compassionate care received by Ritz Naygrow and his family at Mercy General Hospital. As an expression of his gratitude, he has made a $250,000 gift to the Cardiac Rehabilitation Program.

life together in their modest Tahoe Park home. He started his own company, Shasta Beverage Sierra Spring Water Co. He is a true, self-made success story.

By the time Ritz sold Sierra Water in 1979, he employed 3,400 people across 28 Western states. And Ritz’s entrepreneurial spirit didn’t end when he sold his business – at the age of 90, he bought Jim Denny’s, a classic roadside diner at 12th and I Streets in Sacramento. The purchase brought his life full circle: Ritz had eaten donuts at the counter in Jim Denny’s as a young

a life touched by Mercy: a grateful patient’s generous gift

Winter 2013

Sister Susan McCarthy’s passion for service and creating a place of rest and renewal | 4

Continued on page 2

Inspiring Philanthropy. Changing Lives.

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Partners in PhilanthropyM e r c y f o u n d a t i o n

paper boy. Now, he enjoys breakfast there as the owner a couple of times a week, always sporting his Jim Denny’s baseball cap with “Papa Bear” stitched across the back.

Through all of the chapters of his life, one place has been a constant – Mercy General Hospital. At Mercy General, Ritz and June experienced great joy, welcoming their two boys into the world there in the 1940s. They also faced worry and illness there, as Ritz experienced health scares over the years, including heart problems. In 2005, Ritz endured his life’s greatest heartbreak inside Mercy General’s walls when his dear wife June passed away. Through it all, he says the physicians, nurses and employees of Mercy General have provided unmatched strength and support. “I’ve been to every hospital in this area,” says Ritz. “And I can tell you, Mercy General is different. The people here are different. It’s almost like you are healed just by the attitude of the people here.”

Ritz has been particularly touched by the staff and patients he has met through Mercy General’s Cardiac Rehabilitation Program. For 16 years, Ritz has visited Cardiac Rehab once or twice a week, putting in his time on the treadmill and with the weights. Ritz says his time in Cardiac Rehab is not only healing for his body, but also for his soul. “I’ve made so many friends there, and I’ve lost some friends too. The people are my support. It’s been good for me.”

When Ritz heard that the Cardiac Rehab team would have to move their older, outdated equipment into their new home in the Alex G. Spanos Heart & Vascular Center, he saw an opportunity. He asked Cardiac Rehab manager Ken Rogaski what it would take to outfit the new unit the way he would want. After meeting with Ken and Mercy Foundation Chief Philanthropy Office John McIntyre, Ritz made a gift of $250,000 – the

total amount needed to equip the new Cardiopulmonary Rehabilitation Exercise Suite to ensure it would be as world-class as the rest of the facility that will house it.

Ritz’s generosity will provide for all new, state-of-the-art exercise equipment within the new exercise suite, which will be named after Ritz and his late wife June. While Ritz is proud of the physical impact his gift will have on the new facility, he hopes, most importantly, that

alex G. Spanos Heart & Vascular center

The state-of-the-art Alex G. Spanos Heart & Vascular Center on Mercy General Hospital’s campus will house the nationally renowned cardiac care services under one roof, including 90 private patient rooms, 20 cardiac surgery ICU beds and four new cardiac operating rooms.

it will touch the lives of the people who use it, just as his life has been touched by so many at Mercy General Hospital.

“I can tell you now,” Ritz says. “The gift we are giving only has lasting satisfaction and meaningful value when it is shared by the doctors, nurses and the entire Mercy team and the patients they help.”

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Dignity Health employee Brian Sherman and his wife wanted to provide a gift that would impact children and cancer patients in a positive way. His contribution to Mercy Foundation will enable a new children's art therapy program to be established.

Providing support through art: a dignity Health employee “Lends a Hand” to families facing cancer

Brian Sherman was simply looking for a way to honor his nephew. “Anyone who knows his story knows what a fighter he is,” Brian says. “He was given three to six months to live. That was two years ago.”

Brian’s 10-year-old nephew has terminal liver cancer. He will not live to see adulthood. While watching his nephew suffer has been heartbreaking, Brian has also witnessed how the pain of cancer has affected his entire family. “It is obviously hard for the person who is diagnosed, but it is also devastating for everyone who loves that person.”

For Brian – the Human Resources director at Dignity Health’s Sacramento System Office – that sense of heartbreak and grief is what led him and his wife Shannon to seek out Mercy Foundation. They wanted to find a way to memorialize their nephew while also helping other families facing the emotional and physical challenges of a cancer diagnosis. “Since I started working at Dignity Health two years ago, I had heard about the Employees Lend a Hand giving campaign,” Brian explains. “Eventually I sought out Lisa Hume with Mercy Foundation and she helped me explore ways to achieve my goal.”

For Brian, that goal was simple. “I wanted to provide something –not just money, but something bigger – that would impact children and impact cancer patients in a very positive way. The idea that we could help someone experiencing the devastating effect of a cancer diagnosis…it seemed like the

perfect way to memorialize my nephew.”

Brian and Shannon gave a gift that will create a children’s art therapy program at the Mercy Cancer Center. The Sherman’s gift will fund the program for five years and will benefit children whose parents or family members have been diagnosed with cancer.

“This program will help children process their grief in creative and constructive ways,” explains Lynn Smiley, senior director of Oncology Services for Dignity Health. “Many cancers are treatable, which is great, but that means

families are living with this diagnosis and its effects for many years. Support is critical.”

For Brian and Shannon Sherman, being able to provide some of that support

is a gift with no price tag. “Cancer devastates families. Our hope is to have a positive impact on families facing that devastation.”

On Dec. 28, 2012, Brian Sherman’s nephew passed away. His spirit will live on through the children

who will experience comfort and support through the art therapy program.

“Cancer devastates families. Our hope is to have a positive impact on (those) families."

– Brian Sherman

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The Sisters of Mercy

Sister Susan McCarthy, RSM, will tell you she has a passion for service, with a special concern for the poor and those who are in need. But you really don’t need to hear her say it, because it is evident in her actions throughout her lifetime.

“I have a real concern for the needs I see and want to respond,” Sister Susan says. “People are struggling, especially these past few years.” Yet, instead of discouragement, she sees opportunity. “As Sisters of Mercy, we do the best we can to make a difference with the resources we have.”

Sister Susan left Ireland and arrived in the United States 47 years ago – on Valentine’s Day in 1966. Her birth sister, Sister Bridget McCarthy, RSM, was already here.

“I knew since I was 10 years old that I was being called to be a Sister,” says Sister Susan. But like many young adults, she tried a few other things before following God’s calling. After high school, she spent two years in the work force with the Department of

Sister Susan Mccarthy’s passion for service

Social Welfare in Dublin.

“Even then, I was already involved in outreach programs as part of the groups I was involved in. At 18 or 19 years old, I organized a retreat for women in the inner city.”

Once in the Sacramento area, Sister Susan began her college work and Sisters of Mercy studies. She professed her first vows in Auburn in 1968 and went on to earn her BA degree in social studies from Dominican College in San Rafael, as well as a master’s in education administration from the University of San Francisco.

Upon graduating, she immediately began teaching at Holy Spirit Parish School in Sacramento and became principal seven years later. Ever since, Sister Susan has held a variety of leadership positions for the Sisters of Mercy, including director of Novices, member of the Sisters Council and president of the Sisters of Mercy Auburn Regional Community from 1990-1998. In addition, she spent nine years at the Sacramento Diocesan Pastoral Center and was on the staff of Mercy

M e r c y f o u n d a t i o n

Foundation for two years. Since 2008, Sister Susan has been the campus administrator for the Sisters of Mercy West/Midwest Auburn site, including the Mercy Retreat Center, Our Lady of Lourdes Retirement Center and the local community.

a place for rest and renewal of the soul

In her current role, one of Sister Susan’s concerns is the replacement of the hermitage at the Mercy Retreat Center – a place and space to be renewed in body, mind and spirit.

“The original hermitage provided a place where the Sisters spent prayer and rest time away from busy schedules. We all need silence – a sacred space to get away from technology and the busyness of our day-to-day lives.”

When the Sisters of Mercy first bought their 38-acre property in Auburn in 1938, it included a small gatehouse at the end of the lane that was later named the hermitage. It was used over the years as overflow lodging during retreats and

a room with a viewThe site of the new hermitage at the Mercy Retreat Center takes advantage of the peace and beauty of the grounds to help nurture and heal the soul.

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Mercy retreat center in auburn

The Mercy Retreat Center meets the needs of individuals and groups of all faiths who are seeking retreat. It serves as a conference facility for many churches, prayer groups, educational and other non-profit organizations.

a place for individual quiet reflection. In September 2012, the original gatehouse was demolished, as that portion of the property was designated for a new Mercy Housing development in Auburn and the building was too old to lift and move.

Now, Mercy Foundation is partnering with friends and donors to help build a replacement hermitage to benefit not only the Sisters of Mercy, but many others who seek solitude and reflection.

The planned hermitage will be surrounded by redwoods, providing a sacred space where the peace and beauty of the area can nurture and heal the soul.

“A new hermitage will be a wonderful contribution and addition to the Retreat

Congratulations to Sister Clare Marie Dalton, RSM, vice president of Mission Integration at Mercy General Hospital, who was awarded the Sierra Sacramento Valley Medical Society’s prestigious 2012 Medical Community Service Award at its Annual Awards and Installation Dinner on Jan. 17.

This award was presented to Sr. Clare as a non-physician community member who has made a significant contribution to a medical or public health issue. The society noted her participation in regional activities benefiting the poor and underserved, and her advocacy and tireless work to ensure that the underserved have access to quality medical care.

Sr. Clare has worked to provide quality health care in multiple capacities within Dignity Health. She served as a registered nurse at Mercy General Hospital and Mercy Medical Center Redding through the mid-1980s, tending to intensive care and trauma patients. In 1991, she transitioned to director of mission integration at Mercy San Juan Medical Center and later served in a similar capacity at the Dignity Health corporate office in Rancho Cordova. Since 2006, Sr. Clare has been vice president of mission integration at Mercy General Hospital.

Sister clare Marie dalton recognized for commitment to the underserved

Center,” says Sister Susan. “The Sisters and need that time of rejuvenation so they can continue their important work in hospitals, serving the poor and providing leadership in housing or education ministries.”

Colleen Gregg, MA, Mercy Retreat Center director, agrees. “The Retreat Center is often booked to capacity, leaving even less room for retreat for the Sisters. The hermitage will give back to these Sisters who give so much to others.” Mercy Center Auburn is an ecumenical center that meets the needs of individuals and groups of all faiths who are seeking retreat. It also serves as a conference facility for many churches, prayer groups, educational and other non-profit organizations.

Sister Clare Marie receives the 2012 Medical Community Service Award from Dr. David Herbert, President of the Sierra Sacramento Valley Medical Society.

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Ministry NewsM e r c y f o u n d a t i o n

Pain is something no one wants to experience, but when you live with it day in and day out, it can affect much more than your physical body – your emotional health is at risk as well.

An estimated 50 million Americans live with chronic pain severe enough to make every day living difficult. In Sacramento, the chronic pain population is large and many of these patients continue to suffer, with only a handful of health care providers serving this patient group.

Merle Chadbourn, a Sacramento man in his 80s, knows firsthand what it’s like to live in pain and is grateful for the relief he has experienced thanks to Mercy Medical Group’s Pain Management Clinic. Merle came to the clinic after suffering from spinal stenosis for years. “I had been living with back pain for two or three years,” he says. “The pain often went down into my legs and was so bad I even had trouble sleeping.”

Andrew Linn, MD, who is board certified in pain management and anesthesiology and is director of Mercy Medical Group’s Pain Management Clinic, treated Merle with some of the latest advancements in

pain medicine. Merle received injections and the MILD procedure – a new, minimally invasive approach to decreasing pain and improving mobility for spinal stenosis patients. For Merle, the relief was immediate and dramatic. “Each procedure made a big difference.”

Mercy Medical Group, operated by Dignity Health Medical Foundation, features a team of physicians who are board certified in pain management. Through the services provided at the clinic, patients living with chronic pain receive diagnosis, treatment and management of their pain. The Pain Management Clinic helps people regain control of their life through a variety of treatments that include medication management, injection therapy and spinal cord stimulation in a team-centered setting.

"At the Pain Management Clinic, we want to provide significant and immediate relief to our patients,” Dr. Linn says.

As in Merle’s case, chronic pain often stems from spine injuries or ailments. Our aging population is adding to the increasing number of people affected by chronic pain, as is the fact that, for many

finding relief for pain at Mercy Pain Management clinic

sufferers, chronic pain is not effectively treated. Many patients never even receive a referral to a pain management clinic from their primary care provider.

“A lot of people are living with pain instead of getting treatment and relief,” Dr. Linn says. “Our goal is to provide the highest level of service and quality care – with easy access for patients.”

However, for the team at the Mercy Medical Group Pain Management Clinic, providing that access has become challenging. The staff is limited by space constraints at their Midtown location at 3000 Q Street in Sacramento. With 600 patient visits every month, the program is at capacity and cannot accommodate all patient demand.

To accommodate the increasing need for pain management services, Dignity Health Medical Foundation created a plan for growth that will allow the Pain Management Clinic to expand into additional space at the Q Street location. To make this expansion plan a reality, Mercy Foundation has launched an initiative to help raise philanthropic support.

“The additional space would improve patient access and allow us to expand our services,” Dr. Linn says. “We hope to be able to treat both the physical and emotional aspects of pain, and perform within the clinic all outpatient pain therapies that are available.”

For patients living their lives in constant pain, the care and compassion offered at the Pain Management Clinic is truly a lifesaver. “Dr. Linn and the whole team are so knowledgeable and so caring,” Merle says. “Thanks to them, my pain is gone – I am sleeping great, I feel great, life is so much better.”

Pain management specialist Andrew Linn, MD, has helped patient Merle Chadbourn find significant relief for chronic pain using a new, minimally invasive approach as part of his treatment.

"We want to provide significant and immediate relief to our patients.”

– Andrew Linn, MD

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Partners in PhilanthropyM e r c y f o u n d a t i o n

The American Taxpayer Relief Act of 2012 made certain “permanent” and temporary changes to the federal transfer and income tax laws, effective Jan. 1, 2013. The law is not as drastic as many anticipated it would be in terms of its impact on charitable giving. As an overview, the basic transfer tax structure now in effect includes:

1. Gifts exceeding a $14,000 annual per-transferee exclusion and $5 million lifetime exemption are subject to gift tax at a 40 percent maximum tax rate. Generation-skipping transfers (with the same annual exclusion and lifetime exemption) are subject to an additional tax at that maximum rate.

2. Assets (net of deductions) in a decedent’s taxable estate exceeding the remaining lifetime exemption are subject to estate tax (even if the assets are not subject to probate).

3. The transfer taxes are unified, with a single exemption and maximum tax rate. Taxable gifts reduce or even eliminate the exemption remaining in an estate. For example, if a taxpayer makes taxable generation-skipping transfer gifts of $3.25 million, then $2 million of exemption will be available in an estate this year. Each spouse has these exemptions.

Planned Giving focus:new federal tax legislationBy Sil Reggiardo, Downey Brand, LLP Mercy Foundation Planned Giving Committee

4. Spouses may transfer unlimited amounts to each other (outright or in certain trusts) tax-free due to a marital deduction, and with exemption portability they may now transfer their exemptions to the surviving spouse. Charitable transfers are also deductible.

Other tax rules remain relevant. Most assets in an estate receive a new income tax basis equal to their estate tax value in the estate, even if no estate taxes are payable. This can reduce or eliminate later capital gains taxes.

Fractional interests in real estate (even 50% community property interests of spouses) and interests in non-public entities (e.g., family corporations, partnerships or limited liability companies) may have discounted transfer tax values.

For many individuals, tax planning will focus on avoiding valuation discounts to preserve income tax basis in an estate.

If you have included Mercy Foundation in your estate plan, please let us know so we can thank you and recognize you with membership in the Mercy Legacy Society. Members are invited to exclusive events, seminars, tours and more. Those who wish to remain anonymous will not be mentioned publicly.

For more information about making a planned gift, or to request a free, no-obligation personal gift illustration, please call Kevin Duggan at (916) 851-2703. Your information is strictly confidential.

Local dignity Health hospitals rank in top 5% of nation

Both Mercy General Hospital and Mercy San Juan Medical Center have received the Distinguished Hospital Award for Clinical Excellence™ from Healthgrades, a leading provider

of comprehensive information about physicians and hospitals. This prestigious distinction places the two Dignity Health facilities among the top 5 percent of more than 4,500 hospitals nationwide for clinical performance.

Dignity Health strives to provide high quality care to its patients every day and every hospital continues to make clinical quality a top priority.

Mercy General and Mercy San Juan hospitals were two of 262 hospitals named this year that stand out above the rest for their overall clinical care across a broad spectrum of care.

It will include transferring appreciated assets to a charitable remainder trust that can sell the assets tax-free and invest in a diversified portfolio, deferring income from the sale until the donor receives annuity payments. And it will include donor advised fund or unrestricted charitable contributions of certain retirement plan assets to charities that will not pay income taxes on receipt of the funds.

Mercy foundation Seminar

For more information, you are invited to:

New Tax Laws and Charitable Giving

Thursday, March 28, 5 to 6:30 p.m. Located at Mercy Medical Group Midtown, 3000 Q Street, Sacramento

To RSVP, call Jamie at (916) 851-2717

3400 Data Drive Rancho Cordova, CA 95670 SupportMercyFoundation.org

Non Profit US Postage Paid Sacramento, CA Permit #296

Questions or comments about this newsletter? We welcome your feedback. Contact us at MercyFoundationSac@dignityhealth.org or (916) 851–2700 to share your comments or sign up for an electronic version.

2012–13 Mercy foundation Board of trustees

officers

Michael T. Genovese Chair

Mark Read Vice Chair

Alan Shatzel, D.O. Secretary

Linda Van Rees Treasurer

Katherine Doyle, RSM Sisters of Mercy West Midwest President’s Designee

Kevin B. Duggan Mercy Foundation President and CEO

trustees

Jose Abad, M.D. Gene Bassett Costanzo DiPerna, M.D. Roxanne Elliott Eileen Enright, RSM Joan Gann Brian Ivie Jack M. Kimmel Garry P. Maisel Sharon Margetts Careyann Morris Tim Rogers Inder Singh, M.D. John Stevenson, M.D. Terry Street Michael Taylor Brenda Washington Davis Merrily F. Wong William E. Yee

2012 Mercy Ministries Grant awards

Each year Mercy Foundation awards grants to local nonprofits that focus on care for the poor and elderly, education, health care and housing. The grants are made possible by the Foundation’s generous donors who donate where the need is greatest. In 2012, the Foundation awarded $598,566 in grants to:

Cristo Rey High School SacramentoMercy Cancer InstituteMercy Education Resource CenterMercy General Hospital – Acute Rehabilitation Center Mercy General Hospital – Outpatient Rehabilitation Mercy General Hospital – Chaplaincy and Spiritual Care ServicesMercy Housing CaliforniaMercy Neurological InstituteMercy Perinatal Recovery NetworkMercy San Juan Medical Center–Family Birth CenterSacramento Loaves & Fishes