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The New Emergency Services Center Campaign

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The New Emergency Services Center Campaign

“We make a living by what we get, but we make a life by what we give.”

– Winston Churchill

An Open Letter to the CommunityThe vitality of our community depends upon the health of its citizens. For more than 100 years, Kalispell

Regional Medical Center has been a continuing and integral part of the Flathead Valley. We are proud of

our commitment to provide superior medical care to the growing community and thousands of annual

visitors we serve, as well as the reputation KRMC has earned for several specialties.

The health care industry continues to undergo rapid and dramatic changes. As a result, not-for-profit

hospitals and health care systems are experiencing serious financial pressures. These pressures make it

more and more difficult to provide high quality, personalized patient care and fund the modern physical

plant and leading-edge technology we all want for our families.

Most not-for-profit hospitals are turning to their communities for philanthropic support of critically needed

facilities and medical technology. These community partnerships are essential to the continued provision

of high quality health care in America. Kalispell Regional Medical Center is no exception to this trend.

The New Emergency Services Center Campaign will provide much needed expansion and upgrading for

the hospital’s emergency service. This campaign is the first time in KRMC’s history that our community

has been asked for substantial philanthropic support. We have accepted leadership positions in this

campaign because we believe that the continued improvement in emergency services is essential to our

ability to serve our growing community. Won’t you join us in helping to ensure the availability of excellent

care for our community?

Sincerely,

Mick Blodnick Larry WilsonCo-Chair Co-Chair

Mick Blodnick Co-Chair

Larry Wilson Co-Chair

The New Emergency Services Center Campaign • Kalispell 1

Kalispell Regional Medical Center

Background –The First 100 YearsFor more than 100 years, generations of families living in the Flathead Valley, as well as thousands of visitors, have valued local hospital services and relied on Kalispell Regional Medical Center to provide quality, compassionate care for all – including the most vulnerable people living in the community.

The roots of health care in the Flathead Valley were established in 1888 when Dr. E. F. Cunningham opened his practice in Kalispell. In 1892, the Great Northern Railway moved its headquarters to Kalispell, creating a city overnight. To address the growing community’s need for a hospital, Ella Webber, a 32-year-old nurse from Wisconsin, sold subscriptions to local citizens to fund the construction of a hospital with the promise of ‘free future hospitalizations’. The new 20-bed hospital opened in 1896 at the corner of Fourth Avenue East and Center Street in Kalispell. Because of the lack of private space for women, the new hospital only provided care to men.

In 1904, a new 38-bed hospital was constructed to care for both men and women. Unfortunately, later that year, the Great Northern Railway moved its main line to Whitefish, and the hospital proved to be too large and too costly for the small community of Kalispell to support. The hospital was closed and converted into a hotel and later to apartments. Local physicians then established hospital services at 24 First Avenue West and two years later at 303 Fourth Avenue East.

By 1910, the population of Kalispell had doubled and community leaders agreed that a more formally-organized hospital was needed once again. They formed a local board and made an appeal to the Sisters of Mercy in Cedar Rapids, Iowa to come to Kalispell to build a new hospital. The Sisters agreed and opened the 30-bed Kalispell General Hospital, at Fifth Avenue and Seventh Street, in 1912. Additions to the hospital were made in 1948 and again in 1964, increasing patient beds to 66 to serve the growing area.

The Sisters of Mercy continued to own and operate Kalispell General Hospital until 1973, when they transferred ownership of the hospital facilities to Flathead Health Center, Inc., a new not-for-profit hospital corporation. Plans were made to construct a new and larger hospital on Buffalo Hill and, in 1976, Kalispell Regional Hospital opened with 97 beds.

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“Today, the closest hospitals with services similar to those provided by KRMC are located in Missoula, 125 miles away.”

Kalispell Hospital in 1904

The new Kalispell Regional Hospital in 1976

In 1981, Flathead Health Center reorganized and formed Northwest Healthcare as a not-for-profit parent corporation. The new board of trustees was charged with long-range planning to expand services beyond the scope of a traditional community hospital to serve the comprehensive range of medical, surgical and wellness needs of the region. In 1997, the name of Kalispell Regional Hospital was changed to Kalispell Regional Medical Center (KRMC) in order to better represent the wide range of regional health care services it offered to the community. In 2012, the name of Northwest Healthcare was changed to Kalispell Regional Healthcare.

As the population and the community’s need for sophisticated healthcare services close to home continued to grow, KRMC responded by establishing a broad range of specialized medical and surgical services, as well as extended care, medical fitness and wellness programs.

Kalispell Regional HealthcareKalispell Regional Healthcare is a not-for-profit corporation comprised of nine integrated entities, which provide a comprehensive range of health care services designed to meet the needs of both community residents and the 1.7 million seasonal visitors to the region. From preventive medicine and routine procedures to ongoing treatment and complex surgeries, Kalispell Regional Healthcare is equipped with the expertise and state-of-the-art facilities necessary to improve the health of the people it serves.

In addition to Kalispell Regional Medical Center, Kalispell Regional Healthcare services and programs include the following:

The HealthCenterThe HealthCenter is a partnership of Kalispell Regional Healthcare and its physicians. Nearly 100 local physicians are partners with Kalispell Regional Healthcare in the ownership of this 30-bed hospital and state-of-the-art imaging center. Providing diagnostic imaging, outpatient and short-stay surgery, and wellness and pain management, The HealthCenter consists of four distinct, but completely integrated, centers.

• The Imaging Center offers a full range of state-of-the-art diagnostic imaging services for the region, including 3 Tesla MRI, a 64-slice Computed Tomography (CT) scanner, standard x-rays, Coronary CT Angiography, Positron Emission Tomography – Computed Tomography (PET/CT) and Ultrasound.

• The Surgery Center provides outpatient and inpatient surgical procedures in six general operating rooms and two specialized ophthalmology operating rooms with private recovery areas. Surgical services include General Surgery, Orthopedic Surgery, Pediatric Surgery, Spine Surgery, Ophthalmologic Surgery, Gynecologic Surgery, Ear, Nose & Throat (ENT) Surgery, Urological Surgery, Podiatric Surgery, Plastic Surgery, Interventional Pain Procedures, Navigational Bronchoscopy, laparoscopic procedures, laser technology and robotic procedures.

• The Women’s Center is a Breast Imaging Center of Excellence, as designated by the American College of Radiology, ranking it among the best breast imaging centers in the country. It provides high quality digital mammography, complete breast ultrasound services, breast MRI and MRI-guided biopsy, all under the direction of the only board certified breast imaging specialist in the state of Montana. Computer-aided detection is utilized in the interpretation of both mammography and breast MRI. Additionally, breast ultrasound is provided by specially certified breast sonographers. Conveniently, bone densitometry and OB/GYN ultrasound services are also available on site.

The New Emergency Services Center Campaign • Kalispell 3

4 Kalispell • The New Emergency Services Center Campaign

• The Montana Center for Wellness and Pain Management offers traditional and complementary therapies to patients suffering from chronic pain. Services provided include interventional pain management, medical pain management, naturopathic services, massage, acupuncture, chiropractic, psychology/counseling, addiction medicine, physical therapy and radiographic evaluation.

Medical PracticesKalispell Regional Healthcare provides many primary care and specialty care medical practices. As integrated members of Kalispell Regional Healthcare, the physicians in these medical practices work to provide area residents with access to quality medical services close to home. Practices include the Neuroscience and Spine Institute, The Montana Center for Wellness and Pain Management, Northern Rockies Neurosurgical Associates, The Bass Breast Center, Northwest Montana Radiation Oncology, Northwest Montana Surgical Associates – Surgical Oncology, Northwest Oncology & Hematology, Rocky Mountain Heart & Lung, Kalispell Gastroenterology, Northwest Gastroenterology, Northwest Orthopedics & Sports Medicine, Peak Orthopedics and Sports Medicine, Big Sky Family Medicine, Bigfork Medical Clinic, Eureka Health, Family Health Care, Northwest Family Medicine, Polson Health, Woodland Clinic, Northwest Specialists, Northwest Montana Surgical Associates, The Surgery Clinic at North Valley Hospital, FamilyBorn Maternity and Women’s Health, and Flathead Valley Women’s Center.

Brendan HouseBrendan House offers three programs for those patients requiring services beyond those typically found in a hospital setting, including Transitional Care, a 38-bed sub-acute unit for patients who no longer require the acute care of a hospital but still need rehabilitative or medical attention that cannot be provided at home or in a typical long-term care setting. Brendan House also provides a 72-bed nursing unit for patients requiring care for a longer term. Brendan House’s Comfort Care program provides residential hospice services for terminally ill patients who are unable to be cared for at home.

Pathways Treatment CenterPathways Treatment Center provides inpatient care to psychiatric and/or chemically dependent adults and adolescents, including therapeutic services, a psychiatric program, chemical dependency treatment, co-occurring disorders and treatment programs for adolescents.

Occupational Health ServicesOccupational Health Services provides extensive services for area workers and their employers including evaluation and treatment, physicals, fitness for duty exams, impairment ratings, disability exams, hearing, respiratory and impaired employee services, job analysis, injury prevention and vocational rehabilitation.

Regional Support ServicesRegional Support Services supports and serves neighboring communities’ healthcare needs by extending Kalispell Regional Healthcare’s resources beyond the Flathead Valley. This service provides support for physicians in outlying counties such as mobile mammography and mobile nuclear medicine services, physician office management, imaging services, laboratory testing and staffing services for medical professionals.

The Summit Medical Fitness CenterThe Summit Medical Fitness Center is a family-friendly medical fitness and wellness center for members of all ages and abilities. Its 114,000 square-foot complex in Kalispell offers some of the finest fitness programs, facilities and equipment in the state of Montana and is the region’s only certified medical fitness center. The Summit Medical Fitness Center offers a wide range of specialty programs for kids, adults and seniors, including adult fitness programs, performance programs for athletes, senior programs, weight management and programs for special needs.

The New Emergency Services Center Campaign • Kalispell 5

Today, KRMC is a 163-bed, not-for-profit full-service community hospital and regional referral center governed by a 15-member board of trustees, composed of local community leaders and physicians. KRMC is licensed by the Montana Department of Public Health and Human Services and is certified by the Centers for Medicare and Medicaid Services, a division of the U.S. Department of Health and Human Services.

Kalispell Regional Medical Center is the only acute care hospital in the city of Kalispell and one of only two acute care hospitals in KRMC’s primary service area. The other, North Valley Hospital, located in Whitefish, is a 25-bed acute care critical access hospital that provides primarily routine medical/surgical care and obstetrics with specialty medical services referred to KRMC and to other tertiary facilities over 100 miles away. The closest

hospitals with services similar to those provided by KRMC are located in Missoula, 125 miles away.

Small hospitals located in KRMC’s secondary service area are primary care, critical access hospitals with few specialty services. As a key partner in the regional health care network, KRMC provides a number of services to these critical access hospitals, including specialty outreach clinics with board certified, sub-specialty physicians, women’s health mobile coach, imaging services, mobile nuclear medicine, laboratory services, health information technology, and tele-health services.

Kalispell Regional Medical Center provides its patients with highly personalized and compassionate care, state-of-the-art medical technology, and a knowledgeable professional staff. KRMC provides a continuum of health care services

Kalispell Regional Medical Center Today

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ranging from preventive care to acute care, rehabilitation and health maintenance, including:• emergency and trauma care, including the

Advanced Life-support and Emergency Rescue Team (A.L.E.R.T.) air ambulance program (both fixed-wing and helicopter);

• intensive care; • invasive and non-invasive cardiology (including

medical cardiology, interventional cardiology, cardiovascular surgery, electrophysiology, a vascular center, cardiac rehabilitation and wellness programs, and cardiology research);

• cancer diagnosis and treatment (including medical oncology, surgical oncology, radiation oncology and breast surgical oncology);

• neuroscience services (including neurology, stroke, cranial and spine neurosurgery, inpatient rehabilitation, trauma care and prevention);

• surgery (including breast, cardiothoracic, colorectal, ear/nose/throat, general, gynecologic, hand, neurological, eye, orthopedic, plastic and reconstructive, podiatric, vascular and oncology);

• orthopedic services (including sports medicine, non-surgical orthopedic care, general orthopedic surgery, surgery of the hand and wrist, surgery of the shoulder, arthroscopic surgery, joint replacement, trauma and fracture care, work-related injuries, and surgery of the knee, hip, foot and ankle);

• women’s health services (including mammography, breast health and cancer care, breast cancer surgery by the state’s only fellowship-trained, board certified surgical oncologist, osteoporosis screenings, gynecological care and surgery, childbirth and newborn care including a neonatal intensive care unit, heart and cardiovascular care, and prevention and wellness programs);

• primary care; • a full range of diagnostic imaging services

(including X-ray, mobile digital mammography, CT scanning, ultrasound, nuclear medicine, interventional radiology, fluoroscopy and echocardiography);

• endoscopy;• physical therapy; • pulmonary and respiratory care;

• rehabilitation (including physical, occupational, speech and cardiac);

• hospice and home health services; • wound care (including a state-of-the-art

hyperbaric oxygen chamber); • behavioral health (including psychiatric and

substance abuse treatment, outpatient program for children and adolescents, and school-based counselor programs for local area school districts);

• laboratory (including a comprehensive molecular diagnostic lab and the state’s only in-hospital gas chromatography mass spectrometer for advanced and esoteric testing);

• pharmacy;• home care; • nutritional services; • diabetes education; • spiritual care;• and social services. Outpatient services include clinics for family primary care, general medicine, and pediatrics.

“ Kalispell Regional Medical Center is the only acute care hospital in the city of Kalispell and one of only two acute care hospitals in KRMC’s primary service area.”

Kalispell Regional Medical Center today

The Impact of Kalispell Regional Medical Center on the Flathead ValleySome important facts about Kalispell Regional Medical Center and its impact on the Flathead Valley are the following:

• KRMC is the only regional medical center and provider of advanced emergency services in Flathead County, serving nearly 91,000 people. The medical center’s primary and secondary service area (Flathead, Lake, Sanders, Lincoln, Glacier, Toole and Pondera Counties) serves approximately 200,000 people and serves an area the size of six New England states.

• The hospital’s Emergency Department and Level III Trauma Center, staffed 24 hours a day, handled 22,618 patient visits in 2012.

• KRMC’s Trauma Program served 326 patients last year.

• KRMC’s A.L.E.R.T. program, the first rural, hospital-based helicopter ambulance service in the United States, transported 334 critically ill patients in 2012. In January 2012, KRMC began offering fixed-wing services, in addition to the helicopter service, and served 118 patients in 2012.

• In 2012, the hospital handled more than 219,000 outpatient visits and admitted more than 9,100 inpatients.

• KRMC provided 7,237 inpatient and outpatient surgical procedures in 2012.

• KRMC’s cardiovascular service performed 1,144 diagnostic procedures and cardiac catheterizations in 2012.

• Last year, 629 babies were born at KRMC and its Neonatal Intensive Care Unit cared for 163 critically ill infants.

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8 Kalispell • The New Emergency Services Center Campaign

• KRMC’s Cancer Program provides complete cancer care, including sophisticated diagnostic capabilities, fellowship-trained surgical oncologists (including Montana’s only board certified breast surgical oncologist), comprehensive treatment, research, patient education, home care and support groups. KRMC handled 8,355 cancer visits last year.

• In 2012, KRMC provided more than 81,226 inpatient and outpatient diagnostic procedures.

• KRMC’s patients are served by a medical staff of 290 physicians and allied health professionals, representing more than 25 specialties and subspecialties. Of the active medical staff, 97% are Board Certified.

• KRMC has the first and most comprehensive hospital-based molecular diagnostic lab in Montana, rivaling those found only in larger metropolitan hospitals.

• KRMC made 10,498 home hospice visits and provided 26,926 home care visits in 2012.

• HealthGrades, a leading independent healthcare ratings company, recognized KRMC as a Distinguished Hospital for Clinical Excellence in 2009, 2010, 2011 and 2012. KRMC was also recognized with the Patient Safety Excellence Award and the Outstanding Patient Experience Award. KRMC is the only hospital in Montana and one of only a few hospitals nation-wide to earn all three designations. KRMC’s low complication and mortality rates are considered by HealthGrades to be in the top 5% of hospitals in the country.

• KRMC was recognized in U.S. News & World Report’s listing of Best Hospitals for 2011-2012 as a High Performing Hospital in the specialty areas of Ear, Nose & Throat, Gastroenterology, Geriatrics and Pulmonology.

• The Dartmouth Institute for Health Policy and Clinical Practice identified Kalispell Regional Medical Center as one of the lowest cost providers in the state of Montana.

• The Winkley Women’s Center Mobile Mammography Coach is accredited by the American College of Radiology in both mobile mammography and breast ultrasound. Since the program’s inception in March 2008, the program has provided 10,632 screenings

and diagnostic mammograms, 971 breast ultrasounds, 1,016 DXA bone density scans and has identified 58 breast cancers. The Coach travels 33,000 miles per year to serve women living in 10 counties.

• KRMC and Kalispell Regional Healthcare are committed to providing quality medical care to everyone. In 2012, KRMC, combined with other Kalispell Regional Healthcare non-profit entities (Brendan House and The Summit Medical Fitness Center), provided more than $51 million in charity care, community benefit and uncompensated care, including: nearly $7.9 million in the cost of charity care, nearly $12.8 million in community benefit programs and services for the community and more than $30.3 million in uncompensated care.

• KRMC employs more than 1,400 people, making it the largest employer in Flathead County. KRMC’s payroll of $93.7 million, with its multiplier effect, pumps some $469 million through the area economy each year.

• While Kalispell Regional Healthcare, as a not-for-profit organization, receives local tax exemptions for many of the services it provides, total community benefit far exceeds the total of those exemptions. In addition, Kalispell Regional Healthcare and its affiliates pay more than $1 million in property taxes and fees for non-exempt services such as durable medical equipment, a retail pharmacy and for businesses such as the Montana Center for Wellness and Pain Management, which provides traditional and alternative health care options for patients with chronic pain.

• In a report published in January 2011 by the University of Montana’s Bureau of Business and Economic Research, it was estimated that the total county-wide contribution of Kalispell Regional Healthcare is 7% of all jobs in Flathead County, almost 9% of all wages and salaries and 6% of total county-wide sales.

• The KRMC Volunteers donated more than 35,000 hours of volunteer assistance last year helping patients, families and visitors. In 2011, the Volunteers committed $200,000 for needed medical technology, equipment and special projects.

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Kalispell Regional Medical Center As a Unique Community HospitalGiven its location in the Flathead Valley of Montana and the level and quality of services offered by most community hospitals in the U.S. serving populations of similar size, Kalispell Regional Medical Center is unique and one of the most outstanding community hospitals in the country for the following reasons:

1. Scope of ServicesKRMC’s scope of services is much more comprehensive than expected in a rural area of the Northern Intermountain West. In addition, KRMC is able to provide access to life-saving healthcare for patients in otherwise medically underserved areas.

Sophisticated specialty services, many of which have been expanded in the past 12 years, and advanced, leading-edge technology at KRMC are the same as those found at many leading

metropolitan medical centers. Examples of this exceptional level of service include:

• Open heart surgery, cardiac electrophysiology and other sophisticated cardiology services

• Surgical oncology, including breast surgical oncology, comprehensive oncologic surgery by board certified oncologic surgeons, including breast, gynecology, abdominal, thoracic, skin and soft tissue

• Neonatology• Robotic surgery• Neurosurgery• Interventional Radiology• Retinal surgery• Wound care and hyperbaric medicine• Digital mammography, breast ultrasound and

DXA bone density scanning (mobile coach takes these services to men and women living in ten rural communities)

• Molecular diagnostic laboratory services

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2. Physician Quality and Range of Specialties Represented on the Medical Staff and Physician Integration

The range of specialties represented on the medical staff is extraordinary for a hospital the size of KRMC and a community the size of Kalispell. Because KRMC provides this range of specialties, area residents do not have to travel great distances for these services.

KRMC has an active physician recruitment program, is actively employing physicians, and has doubled the size of its medical staff in just 10 years. In 2010 alone, 16 new physicians were recruited to the medical staff, including a fifth cardiologist, two cardiac surgeons, a second surgical oncologist, a fourth orthopedic surgeon, three additional general surgeons, a neonatologist, two psychiatrists, a 16th anesthesiologist, a podiatrist, an internist and an endocrinologist. In 2011, 15 new physicians were recruited including a fourth medical oncologist, two additional oral/maxillofacial surgeons, three neurosurgeons, an electrophysiologist, a third urologist, two hospitalists, an infectious disease specialist, a fourth OB/Gyn and a fourth pathologist. In 2012, eight new physicians were recruited to the medical staff, including two additional anesthesiologists, two internists, a urologist, an otolaryngologist, an additional hospitalist and an additional oncologist. In 2013, 16 additional physicians will be added to the medical staff, including three family practice physicians, two additional orthopedic surgeons, one hospitalist, one pulmonologist, two psychiatrists, an additional oncologist, an additional otolaryngologist, a radiation oncologist, two additional neurosurgeons and a pediatric neurologist. These physicians chose to leave some of the leading medical centers in the nation, such as Johns Hopkins, Massachusetts General, Mayo Clinic, Stanford University Medical Center, Duke University Medical Center, Loyola University Medical Center and the Cleveland Clinic to participate in expanding the extensive scope of services at KRMC.

The quality of physicians on the medical staff is also excellent, with 97% of KRMC’s medical staff board certified. Few hospitals in the United States can make this claim. Board certification requires high standards of train-ing and performance and demonstrates a physician’s exceptional expertise in a particular specialty or subspecialty.

In recent years, the relationship between hospitals and physicians throughout the country has deteriorated dramatically due primarily to competition. Because of decreasing reimbursements from Medicare, Medicaid and private insurance, physicians in many communities have built their own competing outpatient surgical and imaging centers and laboratories in an effort to cover these decreased revenues. Kalispell Regional Medical Center’s administration and board of trustees has been at the forefront in working with its physicians to develop a shared vision that focuses on quality, productivity, efficiency, and patient-centered care.

Physicians participate financially in The HealthCenter, Kalispell Regional Healthcare’s multi-specialty, for-profit hospital. This collaboration is a creative and practical solution to the negative consequences of competition between physicians and hospitals, saving 60% of the revenue Kalispell Regional Healthcare might otherwise lose, while also recruiting high-quality physicians it might not otherwise have recruited for the community. Similarly, physicians can participate in the profits they help to create while practicing in a high-quality environment they do not have to manage. This win-win situation pays dividends for Kalispell Regional Healthcare, its medical staff, its patients and the entire community.

3. Quality and Supply of the Health Care Work Force

Throughout the country, there is an ever-increasing demand for health care services and the medical personnel to provide these services. For example, nearly all hospitals not located in large metropolitan areas face such an acute nursing shortage that they must use very expensive ‘travelers’ or ‘agency nurses’ who are leased on a very expensive part-time basis to hospitals to fill in for the inevitable nursing shortages.

KRMC has not been immune to the nursing shortage and has aggressively expanded its collaboration with regional educational institutions to ensure that it has not only an adequate number of medical personnel, but has staff that is highly-trained in their medical specialties.

To address the nursing shortage, KRMC entered into a collaborative effort with Montana State University and Flathead Valley Community College (FVCC) to establish a four-year Bachelor of Science in Nursing degree. A $250,000 challenge grant from a local philanthropist, combined with a successful $250,000 fundraising effort by the Kalispell Regional Healthcare Foundation, has paid for additional instructors and has increased the number of nursing students participating annually from eight to sixteen.

In addition to the nursing program, a number of additional health science programs have been developed as part of the educational partnership between FVCC and KRMC to address shortages of clinical technicians, therapists, pharmacy and support services (e.g., medical coding, transcription). FVCC also provides an Associate of Arts degree in Substance Abuse Counseling.

KRMC also provides a site for clinical training for students attending programs in other areas of Montana, Washington, Idaho, North Dakota and Iowa. These students are from multiple disciplines including: Respiratory Therapy, Pharmacy, Physical and Occupational Therapy, Dietician, Nuclear Medicine Technician, Radiation Therapist and Registered Nurse.

These entrepreneurial partnerships have paid enormous dividends for KRMC’s patients and the entire community and have saved the hospital substantial funds that can be better used to create and support patient care services.

4. Cost of Services

Despite KRMC’s emphasis on excellence and comprehensiveness in its services, the Flathead Valley enjoys low cost medical care. A study by the Dartmouth Institute for Health Policy and Clinical Practice identified Kalispell Regional Medical Center as one of the lowest cost providers in the state of Montana and the nation.

5. Sensitivity to the Debt Collection Process

KRMC is the only hospital in Montana, and one of only 50 hospitals in the nation, that participates in the Self-Pay Compass program, a tool used to help identify those who might qualify for financial assistance. This program, created by The Advisory Board, an organization established to identify and promote ‘best practices’ for health care organizations, has provided substantial assistance to help KRMC identify patients who might qualify for financial assistance.

The New Emergency Services Center Campaign • Kalispell 11

“ Sophisticated specialty services, many of which have been expanded in the past 12 years, and advanced, leading-edge technology at KRMC are the same as those found at many leading metropolitan medical centers.”

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KRMC’s Commitment to Cardiovascular, Surgical and Emergency Services ExcellenceKRMC’s successful recruitment of highly trained physician specialists, including 55 new doctors in the past four years, from some of the nation’s leading medical centers, has resulted in the development of healthcare services that, in the past, were not available anywhere in the region. This is especially true in surgical and cardiovascular services, which are now staffed by renowned physicians and highly skilled nurses and technicians capable of delivering a wide range of state-of-the-art techniques to diagnose and treat many illnesses and injuries which could not have been addressed locally in earlier years. In order to maintain and advance this exceptional level of cardiovascular and surgical services, KRMC must upgrade and expand its facilities and technology in these two important areas.

In addition to the need to enhance cardiovascular and surgical services, KRMC must also dramatically expand and upgrade its emergency facilities and technology in order to handle current and future patient volumes, which have increased enormously since the existing emergency department was built.

In 2008, the leadership of KRMC, after rigorous review, and with the input of its physicians and Board of Trustees, developed a two-phase plan to build the critical infrastructure and acquire the latest generation medical technology necessary to provide and further enhance KRMC’s cardiovascular and surgical services, as well as its emergency and trauma services. The needs and plans for these four services are described in the sections that follow.

The Need and Plan for New and Expanded Cardiovascular Services Heart disease is the leading cause of death in Montana, as well as in the United States. Recent developments in the rapid diagnosis and treatment of heart attacks have allowed cardiac teams in state-of-the-art cardiovascular centers to stop heart attacks before they cause permanent damage. If a patient arrives at the hospital within an hour of experiencing symptoms, closed arteries can be opened rapidly with the use of clot-dissolving drugs and/or cardiac catheterization with a balloon angioplasty or stent. Having advanced cardiac services close to home can literally mean the difference between life and death to Flathead Valley residents and visitors.

Recognizing this vital need, KRMC brought open-heart surgery services to the Flathead Valley in 2001. A new heart catheterization laboratory and special procedures room were constructed at KRMC in 2001 to provide a wide range of cardiovascular services locally.

Today, KRMC’s Rocky Mountain Heart and Lung team of health care professionals includes eight cardiologists, one electrophysiologist, three pulmonologists, two cardiothoracic surgeons, a specialist in sleep medicine and multiple allied health professionals.

To assist these professionals in caring for their patients, KRMC provides a sophisticated array of diagnostic, imaging, surgical and critical care technologies and services. KRMC’s cardiac catheterization lab provides the most definitive method of accurately diagnosing coronary artery disease and valvular heart disease. In addition to cardiac catheterization, KRMC also offers Echocardiography, Coronary CT Angiography, Magnetic Resonance Angiography and Nuclear Medicine cardiac studies.

KRMC provides an extensive range of surgical techniques including Coronary Artery Bypass Surgery, Off-Pump Coronary Artery Bypass Surgery, Apical Aortic Conduit Surgery, Electrophysiology surgery procedures, aortic dissection repair and Cardiac Valve Repair and Replacement.

The increased population in the Flathead Valley and secondary service area, and the aging of area residents has increased the volume of procedures performed in the cardiac catheterization lab. By early 2011, KRMC’s cardiac catheterization lab could no longer handle the volume of procedures it was being called upon to perform and the existing equipment in the lab was ten years old and reaching the end of its useful life. To meet existing volumes, a second lab was needed, as well as an Angiography Lab, to provide minimally invasive procedures with imaging guidance, including angioplasty and stents.

In addition, in 2012, KRMC began providing Cardiac Electrophysiology, a specialty that diagnoses and treats disturbances of the heart’s normal rhythm. Procedures performed include studies to gather data regarding the heart’s rhythm, implanting cardioverter defibrillators, and invasive cardiology and surgical procedures to control abnormal heart rhythms.

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The Need and the Plan for New and Expanded Cardiovascular and Surgical Services

14 Kalispell • The New Emergency Services Center Campaign

As part of Phase I of KRMC’s two-phase infrastructure plan, construction of the advanced cardiology procedure suites was completed in March of 2012. The new facilities are adjacent to the former cardiac catheterization lab and special procedures room in KRMC’s existing hospital.

The Need and Plan for New and Expanded Surgical ServicesKRMC’s surgical services department was constructed when the number and complexity of surgical cases was considerably less than it is today. When Kalispell Regional Medical Center was built in 1976, it had four, 400 square-foot operating rooms, designed to accommodate approximately 3,300 annual procedures. In 1991, two additional, and much larger (780 square-feet), operating rooms were added to accommodate increased demand, neurosurgery and potential open heart cases.

Demand for surgical services has doubled since KRMC was built, with 7,237 inpatient and out-patient surgical procedures conducted at KRMC last year.

In addition to recruiting new cardiothoracic surgeons, KRMC has also recently recruited three neurosurgeons, two surgical oncologists, one breast surgical oncologist, three additional general surgeons, two additional ENT’s, one additional gynecologic surgeon, and one additional urological surgeon, further increasing the need and demand for operating room space.

In 2010, KRMC’s operating rooms were becoming increasingly outdated and overcrowded. The rooms and supporting infrastructure were inadequate to accommodate the latest surgical technologies, more sophisticated equipment, larger surgical teams, and increased electrical demands.

In order to meet the advanced surgical needs of its patients and physicians, KRMC constructed a new, larger and more sophisticated facility for its surgical

services. In 2011, as part of Phase I of KRMC’s two-phase infrastructure plan, KRMC broke ground on a new four-level (one level below ground), 130,446 square-feet Surgical Services Tower, a building that has been structurally stressed so that it can later accommodate two additional floors. The new tower is adjacent to the current KRMC patient tower and is integrated into the existing building. The Surgical Services Tower, which opened in March 2013, provides 250% more surgical services space and accommodates the expansion and renovation of a portion of the new Emergency Department as well. The new tower also includes the following:

1. The first floor of the new tower has 12,900 square-feet in the existing building for the relocation and remodel of several KRMC services.

2. The first floor also includes 26,900 square-feet of new construction, including a new Central Sterile Supply Department for surgery and several surgeons’ offices.

3. The second floor has seven, 840 square-foot operating rooms and one 1,036 square-foot operating room designed specifically for open heart surgery. The area also includes four shelled operating rooms for future growth.

4. The second floor also has 18 Same Day Surgery beds, 18 Post Anesthesia Care Unit (PACU) beds, two endoscopy procedure rooms, two fluoroscopy procedure rooms, a staff lounge, offices and storage space. The second floor seamlessly connects to the existing KRMC intermediate care and intensive care units for quick and efficient patient transfer.

5. The Surgical Services Tower has a welcoming visitor/patient entrance at the existing KRMC northwest Admitting lobby and a larger and more comfortable family waiting area.

The third floor of the new tower has 32,900 square-feet of shelled space to house future patient rooms and ancillary support.

“ The Surgical Services Tower, which opened in March 2013, provides 250% more surgical services space and accommodates the expansion and renovation of a portion of the new Emergency Department as well.”

The Need for a New and Expanded Emergency Services CenterSilvertip Emergency Services has been providing exceptional emergency care at KRMC since 1998. Silvertip’s 12 board certified emergency physicians handle a wide variety of medical, surgical, pediatric and psychiatric emergencies to meet the emergency and trauma needs of the residents of the Flathead Valley.

KRMC’s Emergency Department operates 24 hours a day, seven days a week and handles almost 23,000 patient visits each year. The Emergency Department, including the A.L.E.R.T program, provides care to all patients, regardless of their ability to pay.

The Emergency Department offers Level III comprehensive emergency and trauma care, featuring 10 private treatment rooms, two trauma rooms, and one behavioral health room for psychiatric and detox patients. KRMC’s A.L.E.R.T. program, the first rural hospital-based air transport program in the United States, transported 452 critically ill patients in 2012.

Established in 1975, A.L.E.R.T. utilized Denver’s St. Anthony Flight for Life and Seattle’s Medic One, the premiere ground Advanced Life Support (ALS) program in the United States, as ‘best practice’ examples to create the KRMC emergency transport system. Since then, A.L.E.R.T. has evolved from an EMT basic provider team to an ALS Nurse-Paramedic team which, with a pilot, responds on a moment’s notice, 24 hours per day, within

The Need and Plan for a New and Expanded Emergency Services Center

The New Emergency Services Center Campaign • Kalispell 15

The Need and Plan for a New and Expanded Emergency Services Center

Architectural rendering of the New Emergency Services Center

a 15,883 square mile region, including Glacier National Park, in a Bell 407 helicopter. It has been estimated that 1,400 lives have been saved because of KRMC’s A.L.E.R.T. service, including hundreds of cardiac arrests, accident victims, hypothermia cases - and even grizzly bear maulings.

The annual operating cost of A.L.E.R.T. is $3.2 million. With operating revenue of just $2.35 million, the A.L.E.R.T. program loses approximately $850,000 each year. In 1978, the local community formed the A.L.E.R.T. Advisory Board made up of representatives from the logging, park and forest industries, as well as from local businesses to provide private support to the program.

Today, A.L.E.R.T. Advisory Board members raise approximately $100,000 annually to help offset the program’s losses and serve as champions for KRMC’s air ambulance service. Since the founding of the A.L.E.R.T. Advisory Board, nearly $2 million has been raised by this dedicated group of volun-teers. Nevertheless, A.L.E.R.T. still sustains an operating loss of about $770,000 per year which is funded by KRMC.

In January 2012, due to the generosity of a local supporter, KRMC added a fixed-wing aircraft program (A.L.E.R.T. II). The fixed-wing program was added in order to transport patients longer distances and during inclement weather when the helicopter cannot fly.

The trauma center at KRMC has been designated as a Level III Trauma Center by the state of Montana. Recently, the American College of Surgeons officially recognized the trauma center’s dedication to providing optimal care of injured patients in Flathead County and surrounding communities.

Flathead County is one of the fastest growing areas in the State of Montana, as well as the Rocky Mountain West, and is home to three of the fastest growing cities in Montana – Whitefish, Kalispell and Columbia Falls. Since the hospital opened in 1976, the population of Flathead County has nearly doubled; and in the last decade alone, the area grew more than 20%. In addition, more than 1.7 million people visit the area each year to enjoy the remarkable scenery and outdoor recreation opportunities in and around Glacier National Park.

Because of the resulting patient volume, KRMC is able to provide a more comprehensive array of emergency services to the residents of the Flathead Valley than would typically be found in a community of its size.

Many visitors also have second homes in the Flathead Valley and live here part-time each year. These families, their children, and their guests also need a variety of health care services – especially emergency care of all kinds, from treatment of injury accidents to addressing serious heart problems.

KRMC’s Emergency Department (ED) was constructed when the population of the hospital’s service area was considerably smaller than it is today. The current ED was last expanded in 1991 and was built to accommodate 13,000 patient visits per year. Since then, the number of annual patient visits to the Emergency Department has increased dramatically to almost 23,000. This situation will only get worse, as demand for KRMC’s emergency services is projected to increase at least another 15% to nearly 27,000 annual visits by 2015.

As a result of this dramatic population growth and large number of part-time residents and visitors, combined with changes in the way ‘best practice’ emergency care is delivered, KRMC’s ED is too old, too small and outdated to adequately meet the current and future needs of area residents, businesses and visitors. The department is literally bursting at the seams and is inadequate to handle all of the life-saving functions it is called upon to fulfill. The ED must be expanded and renovated to accommodate increased patient volumes, to house new equipment and technology, to provide cutting edge emergency care in a comfortable environment, and to ensure KRMC’s long-term viability as Flathead County’s only regional medical center and provider of advanced emergency medical services.

In an effort to meet the emergency and trauma care needs of patients, every square inch of the existing ED space is currently being utilized. The resulting crowded conditions interfere with the ability of doctors and nurses to provide care in an efficient manner and negatively affect patient comfort, privacy and dignity.

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Additional deficiencies include:

• The existing trauma rooms, which treat two patients in the same amount of space that modern emergency departments use to treat one patient, are too small to accommodate the technology and staff needed to simultaneously provide trauma care to multiple patients.

• Patients frequently have long waits for care because there are not enough treatment rooms. As a stopgap measure, four gurneys are placed in the ED hallway to create additional emergency beds, compromising patient privacy and satisfaction.

• There is only one isolation treatment room for the care of patients with compromised immune systems or infectious diseases and for chemical, biological or nuclear disasters. KRMC’s expansion of its cancer service with many more cancer patients with suppressed immune systems, coupled with the increase in influenza and whooping cough, as well as requirements for disaster preparedness, has led to an increased need for more isolation rooms.

• The waiting area is too small and often cannot provide sufficient seating for patients and family members.

• The waiting area is also not configured to support efficient patient flow. Consequently, dealing with patients presenting for triage and registration is awkward and confusing.

• Patient Triage is currently conducted in a shared space with Patient Registration, rather than in a private triage room, which compromises patient privacy and confidentiality.

• In 2012, KRMC’s Emergency Department treated 667 patients with alcohol, drug and/or mental health issues. These patients had an average length of stay of five hours in the Emergency Department, co-mingling with other patients. Currently, there is only one dedicated room for psychiatric and detox patients. Unfortunately, this room is a converted bathroom that is too small and is adjacent to the other patient exam rooms and the nurses’ station. This is uncomfortable for other ED patients and disrupts work at the nurses’ station.

• There is only one small private area for physicians to meet with family members to discuss sensitive issues about a patient’s

treatment or prognosis or for families to grieve.

• There is a significant need for a decontamination room in case of biological, chemical or nuclear disasters.

• The nursing station that serves the entire department is crowded, making it difficult for the physicians and nursing team to work efficiently.

• Storage space for medical supplies and equipment is inadequate. Consequently, equipment and supplies are stored in hallways.

In order to provide the ‘best practice’ emergency care the community needs and deserves, KRMC’s Emergency Department must be redesigned and expanded to add the capacity necessary to accommodate increased patient volumes, allow for upgraded equipment and technology, and care for patients in a healing, comfortable and more private environment.

The Plan for the New and Expanded Emergency Services CenterThe second phase of KRMC’s two-phase construction plan will build a new, expanded Emergency Department. KRMC has needed a new and expanded ED for several years, but it has been too expensive and too disruptive to the hospital campus to build. Planning studies indicated that in order to expand the ED onto Conway Drive, it would be necessary to relocate the road, the A.L.E.R.T. hangar, and the underground utilities, adding an additional $10 million to the cost of the project.

KRMC’s existing ED is adjacent to the hospital’s surgical suites and cannot be expanded in its current location. However, with existing surgical services relocating into the new surgical tower in March 2013, the opportunity exists to expand the ED into the vacated surgical space. The cost of moving the ED into remodeled existing space will be considerably less than the cost for new construction and will avoid the significant cost and disruption to A.L.E.R.T. and to the hospital campus.

Construction of a new Emergency Department could begin in summer 2014 and open in the late fall of 2015, provided that KRMC can find a way to fund the project.

Plans for the new Emergency Services Center call for increasing the current ED’s square-footage

The New Emergency Services Center Campaign • Kalispell 17

from 8,179 square-feet to 37,516 square-feet. This would result in 34,616 square feet of active emergency service and 2,900 square-feet of office space. Thus, the new emergency service would be more than three and one-half times larger than the existing department. The number of patient treatment rooms would increase from 13 to 30 rooms.

The new Emergency Services Center patient treatment rooms will include:

• A Trauma Center with six private individual trauma rooms;

• Nine individual patient treatment rooms equipped for patients with a wide-array of serious medical emergencies;

• The number of isolation rooms will increase from one to six rooms;

• A dedicated Sexual Assault Exam Room;

• Four psychiatric/detox rooms instead of the existing one;

• Three ‘Fast Track’ rooms (there aren’t any now);

• A decontamination room (there aren’t any now);

• Three new ‘Family Support’ rooms where families can meet with doctors and other caregivers or grieve and support each other;

• Dedicated Imaging.

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Future Nursing Station

Future Family Waiting AreaFuture Patient Treatment Room

Future Trama Room

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The New Emergency Services Center will also Feature:

• Two private triage rooms (there aren’t any now);

• Three nursing stations (there is one now);

• A large patient and family waiting area;

• 2,900 square-feet of the former Emergency Department will not be remodeled and will be used for offices and work space for nurses, physicians, EMT’s and the A.L.E.R.T. staff.

20 Kalispell • The New Emergency Services Center Campaign

The Cost and Funding for the New Cardiovascular Services, Surgical Services Tower, and Emergency Services Center • Phase I of construction is complete and includes the following services:

• $2 million for expanded cardiovascular services (electrophysiology, cardiac catheterization and interventional radiology) • $40 million for the new Surgical Services Tower

• Phase II

• $14 million for the new Emergency Services Center

Phase I was funded through borrowing. A $57 million bond issue financed the entire $42 million Phase I construction project and refinanced $15 million of existing debt at more favorable rates. Phase II, the new Emergency Services Center, will be funded with philanthropy. This is a service that is of critical importance to every individual, family, and business in Northwest Montana.

Like the vast majority of not-for-profit hospitals in the U.S., philanthropy is essential to maintain excellence at KRMC. Therefore, the Kalispell Regional Healthcare Foundation has launched a community-wide fundraising campaign to raise $14 million to build and equip the new Emergency Services Center. Kalispell Regional Healthcare and Kalispell Regional Healthcare Foundation boards, physicians, management, volunteers, and employees hope that the community they serve will find sufficient merit in the emergency services project and in KRMC’s service to the community, to make a positive response.

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“It is widely agreed that, in the future, the only communities that will enjoy access to the best health care will be those that provide charitable support for their local not-for-profit health care providers.”

The Need for Philanthropic Support

The entire U.S. health care system is now experiencing the most severe financial crisis in its history. Medicare, Medicaid and many private health care insurers have dramatically reduced fees paid to hospitals and physicians, resulting in significant under-funding of the actual costs of providing care. In addition, the cost of purchasing advanced medical technology has skyrocketed.

At the same time, our population is aging, placing a much greater burden on the health care system and the resources that support it. And, as a result of the steadily rising costs of health insurance premiums, many employers have reduced or eliminated health care coverage for their employees and families. Together, these trends are placing extreme financial pressures on not-for-profit community health care providers, many of which have closed or been sold to publicly traded for-profit health care chains, sometimes leaving their communities without not-for-profit, locally governed health care services.

These various factors place particularly severe pressures on Montana health care providers such as KRMC. First, the state has one of the nation’s highest rates of uninsured and underinsured residents. Second, Montana’s economy is based largely on small businesses, only a small percentage of which offer health insurance coverage for their employees.

In the future, neither the new healthcare legislation already passed by Congress nor any other suggested health reform plan will solve these challenges for community hospitals, and has the potential unintended consequence of exacerbating the financial challenges currently faced by U.S. hospitals.

The most common result of the financial challenges faced by community hospitals is a severe shortage of capital available to establish or expand vital hospital services and to replace obsolete equipment and facilities. Nationwide – and throughout Montana – more and more community-based, not-for-profit health care providers are depending on charitable contributions to help fund their capital needs. For example, recent major hospital fundraising campaigns have enabled Montana hospitals in Billings, Red Lodge, Whitefish, Missoula, Libby, Great Falls and Helena to fund vital projects. Several more Montana hospitals are currently conducting – or will soon launch – campaigns to help pay for important projects. It is widely agreed that, in the future, the only communities that will enjoy access to the best health care will be those that provide charitable support for their local not-for-profit health care providers.

While strong financial management is a hallmark of Kalispell Regional Medical Center, the organization is not immune to the effects of the current healthcare financial crisis, which keep KRMC’s modest operating margins near 2%. Consequently, KRMC must look to community philanthropic support to help fund some of its critical capital needs such as the new Emergency Services Center.

In order to raise $14 million, the Board of Directors of the Kalispell Regional Healthcare Foundation, with the help of other community volunteers, has launched The New Emergency Services Center Campaign to approach area residents, businesses and foundations for philanthropic support. Gifts are being sought in the form of signed pledges payable over a period of three to five years. Pledge payments may be made through gifts of cash, stock and other securities or real estate and other real property that can be liquidated in the near term. Gifts are fully tax deductible as allowed by state and federal law.

OUR HOSPITAL FAMILY …

The KALISPELL REGIONAL HEALTHCARE FAMILY – The Kalispell Regional Healthcare and the Kalispell Regional Healthcare Foundation board members, employees, the KRMC Volunteers and our medical staff – has already pledged nearly $5.4 million* to the campaign.

BOARD MEMBERS – have made pledges of nearly $2.3 million* to the institution they guide.

EMPLOYEES – have pledged nearly $1.2 million* to ensure the best possible care for the patients they serve.

THE KRMC VOLUNTEERS – have made a $200,000 treasury pledge – more help from helpful people.

MEDICAL STAFF – have pledged nearly $1.7 million.

Board members, employees, volunteers, doctors and allied health professionals – these people know KRMC and its needs best. They are 100% behind this program with their time and financial support. Their generous leadership is also an appeal to their friends and neighbors … JOIN US!

… LEADING THE WAY

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The New Emergency Services Center Campaign

* As of July 30, 2013

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Gift Structure Necessary

to Raise $14 Million

In order to raise $14 million in the Flathead Valley, the campaign will require a number of substantial commitments. Almost all capital fundraising campaigns receive at least 85% of their funds from no more than 15% of the donors to the campaign. Generally, the breakdown of gifts necessary to raise $14 million in KRMC’s service area will be something like this:

No. of Gifts Amount Category CumulativeRequired of Gift Total Total

1 gift of $ 5,000,000 = $ 5,000,000 = $ 5,000,000 3 gifts of $ 1,000,000 = $ 3,000,000 = $ 8,000,000 2 gifts of $ 500,000 = $ 1,000,000 = $ 9,000,000 3 gifts of $ 250,000 = $ 750,000 = $ 9,750,000 15 gifts of $ 100,000 = $ 1,500,000 = $ 11,250,000 20 gifts of $ 50,000 = $ 1,000,000 = $ 12,250,000 25 gifts of $ 30,000 = $ 750,000 = $ 13,000,000 30 gifts of $ 15,000 = $ 450,000 = $ 13,450,000 35 gifts of $ 10,000 = $ 350,000 = $ 13,800,000 40 gifts of $ 5,000 = $ 200,000 = $ 14,000,000Many gifts of less than $5,000 = $ 14 million +

Note: As may be readily determined from this chart, a community campaign for $14 million that receives no gifts of $5 million, must ‘make up’ 36% of its goal in additional gifts of $5,000 to $1,000,000 – a nearly impossible task. Similar adjustments are necessary when other large gifts are not obtained in the numbers necessary to success.

24 Kalispell • The New Emergency Services Center Campaign

The Kalispell Regional Healthcare Foundation wishes to recognize donors to the Emergency Services Center Campaign in a manner that reflects appropriate credit on our donors and will inspire others to follow their generous examples. Accordingly, a master Donor Recognition Plan has been developed by the Foundation to provide special recognition to campaign donors of $10,000 or more.

There will be two forms of permanent donor recognition available through the campaign:

Donor Recognition Wall

All donors of $10,000 or more (campaign pledges of $3,333 or more per year for three years) will be recognized on the Wall of Honor in the main KRMC lobby and on a special plaque in the lobby of the new Emergency Services Center. Donor’s gifts will be recognized in six categories:

• $10,000 to $29,999

• $30,000 to $49,999

• $50,000 to $99,999

• $100,000 to $499,999

• $500,000 to $999,999

• $1 million or more

Named Gift Opportunities

Donors of $30,000 or more, in addition to being entitled to permanent Donor Recognition Wall plaques, may have the opportunity to name (for themselves, their families, their businesses, or a person or persons of their choice) a room, department or other functional area within the new Emergency Services Center, the new Surgical Services Tower and other areas within the hospital. A plaque naming the area will be placed inside or adjacent to the space named by the donor.

Examples:

• “The John and Mary Doe Emergency Services Center”

• “This Trauma Treatment Room made possible through the generosity of Mr. and Mrs. John Doe”

• “This Family Waiting Area is dedicated to the memory of William Doe by Mr. and Mrs. John A. Doe”

A list of named gift opportunities may be found in the back pocket of this brochure.

Note: Named Gift Opportunities will be awarded on a first come, first served basis.

Campaign Donor Recognition Plan

310 Sunnyview Lane • Kalispell, MT 59901 • 406-751-6930 • 406-751-6950 (fax)[email protected] • www.kalispellregional.org/foundation/