Trinity Health Annual Report 2008

Financial stewardship is an essential element of Trinity Health’s Mission to maximize care within our
communities with the limited resources entrusted to us. As a faith-based, tax-exempt enterprise, Trinity
Health has been successful in leveraging our nation-wide skill and scale to create value within every
community we serve.
Consistent with its Mission, Trinity Health’s sound financial management enabled a 16.5 percent increase
in commitments to community benefit activities, including charity care. Trinity Health contributed $376.4
million to our communities through direct primary care programs, charity care, education, research and the
unpaid cost of Medicaid. The amount reflects an increase of $53.4 million over prior year’s commitment.
Financial Stewardship
Trinity Health ended the year with strong operating performance despite many fluctuations in the marketplace.
Challenges in today’s health care environment include a worsening economy, more government regulation
and intervention, increasing competition, rising costs and declining reimbursement, weak financial markets
and growing numbers of uninsured patients. Despite these challenges, Trinity Health achieved an operating
margin of 5.7 percent in FY08. Operating income was $359.7 million, a decrease of $24.7 million from the
previous year.
Compared to the prior year, operating revenue increased 4.5 percent to $6.4 billion and hospital discharges
grew 1.9 percent to 328,000. Overall operating performance reflects the volume and cost increases
in conjunction with significant revenue initiatives, continued success in managing operating costs and
favorable insurance results.
Excellent financial stewardship has allowed Trinity Health to achieve a strong balance sheet and has enabled
AA-bond ratings which help reduce debt and create additional strategic benefits for sustained growth. Strong
financial stewardship ensures long-term stability and supports increased spending on community benefit
programs and charity care, technology and facilities, improvements in services, quality and patient safety,
and associate pensions. This includes major capital expenditures to meet community need in every market
Trinity Health serves.
By leveraging skill and scale, Trinity Health is well positioned to be more responsive to major changes in a
constantly evolving industry. As dedicated stewards of community health for more than 160 years, Trinity
Health is committed to sustaining its healing ministry for the next century and beyond. Each year, Trinity
Health grows stronger in its ability to continue the legacy of Catholic health care.
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