2020 Annual Report

“When you see patients and families – when they’ve lost hope and they don’t have the answers, and they find it with us and our staff supports them, is engaged with them … You can’t help but get excited and feel good to be a part of it. I personally don’t think there’s any greater calling than helping others.”

— Kreg Gruber, Chief Executive Officer

2020 Annual Report

Caring for our communities through a pandemic ... and beyond

Kreg Gruber
Chief Executive Officer

Just like you and your family, Beacon Health System approached 2020 with the customary hope and excitement for a new year. We began with a list of strategies to strengthen our ability to improve the health of the communities we serve: Clinical Excellence to deliver outstanding care and value; Great Workplace to actively shape Beacon’s work environment, culture and sense of purpose; Customer-Driven Culture to design care, services and connectivity around the customer; Smart Growth to invest in future models of health care that provide solid returns; and Financial Sustainability to ensure Beacon can successfully serve the community in the short and long term.

Then the COVID-19 pandemic brought untold challenges for all of us, and 2020 became one of the most difficult years our nation has ever faced. Guided by our mission — to deliver outstanding care, inspire health and connect with heart — our Beacon team stepped up and supported our community through their dedication and compassion. Our associates are our strength, and everyone from health care providers to administration to non-clinical support staff met the challenges. We couldn’t be more grateful for every team member and all of those in our community who supported us. We also keep in our hearts all of those impacted by or lost to COVID-19.

The pandemic brought financial challenges to nearly every person and every business, including Beacon. We recognized the need for quick and mindful action to remain strong for not only our associates, but also for our community. This included bringing everyone together to make hard decisions and follow through. As a result, we recovered more quickly than expected so we could continue to protect the health and security of our patients, associates and communities we serve. Despite the challenges of 2020, we came out stronger and better able to serve you and your family.

We deliver outstanding care, inspire health and connect with heart.

Our COVID-19 response

Ensuring the safety of our community

Dr. Sam El-Dalati
Chief Clinical Officer

Through the commitment of our associates and medical and leadership teams last year, we were able to ensure the safety and support of our frontline workers and those they care for. The pandemic put this commitment to the test, especially in finding and supplying additional personal protective equipment (PPE) and providing access to necessary and safe care. We succeeded through a dedicated procurement team, leadership and constant focus on maintaining access to items needed by those providing care.

“Our current plan is to offer as many services to our patients as we possibly can given the current restrictions with the pandemic.”

— Dr. Dale Patterson, Vice President of Medical Affairs

To keep residents safe even before they needed care, Beacon provided important guidance and support to individuals and local businesses. Our medical professionals acted as a needed authority on vital pandemic guidance in our region. Businesses received guidelines and screening tools. We also provided multiple testing sites across the region — at our hospitals but also in churches, employer sites and in rural areas.

As COVID-19 impacted our community, it became clear that certain populations were impacted more than others — and they were the populations we most needed to reach. So we adapted. Beacon created a mobile COVID-19 testing clinic for our most underserved populations so that we could continue providing the highest level of care to our community members.

“Those are the folks that we need to have presenting at the hospital, at clinics, at urgent care for the various needs that they’re going to have because of their underlying disease processes.”

— Dr. Kate Callaghan

We are humbled that, during this difficult time, our clinical excellence was recognized for its quality and effectiveness, all made possible by our dedicated, exceptional associates.

Beacon Children’s Hospital and Elkhart General HospitalINspire Hospital of Distinction for excellence in infant and maternal health by the Indiana Hospital Association, recognized in a pediatric sepsis study

Memorial Hospital of South Bend – prestigious Perinatal Center certification from the State of Indiana

Memorial Regional Breast Center and Memorial Lighthouse Medical Imaging – prestigious designation of Breast Imaging Centers of Excellence by the American College of Radiology (ACR)

Memorial Hospital of South Bend – Get With the Guidelines®-Stroke Gold Plus with Target: Stroke Honor Roll Elite and Elkhart General Hospital – Get With the Guidelines®-Stroke Gold Plus with Target: Stroke Honor Roll

System successes

Promoting new growth

Diane Maas
Chief Strategy & Digital Growth Officer

While the pandemic harmed many businesses, Beacon continued to provide safe, exceptional services and even expanded our health system’s reach in order to deliver outstanding care, inspire health and connect with heart. We formed a new collaboration with the Mary Free Bed Rehabilitation Network, cut the Franciscan Beacon Hospital ribbon and signed our letter of intent with Three Rivers Hospital in Michigan. We also developed a Narrow Network, a high-performing network called Quality Care Partners in cooperation with Goshen Health System, Elkhart Clinic, OSMC, Beacon Medical Group and other local providers to help employers improve the health of their employees while lowering health care costs.
COVID-19 toolkits
To continue delivering safe and exceptional services to all areas we reach, Beacon quickly developed special online COVID-19 toolkits.

Beacon gave our business community a convenient place to get information to support their employees during the pandemic. It provided tools to post in workplaces, information to help businesses make COVID-related decisions, testing and vaccine updates, where and how to get care (including telehealth visits) and more so employers and their staff could stay informed and stay safe.

As with our external communities, Beacon wanted to ensure our associates had access to information they needed to stay informed and safe. This toolkit through Beacon’s intranet gave statuses on personal protective equipment, clinical guidance to health care providers, access and training for telehealth visits, resources for associates to help them protect themselves and their patients, associate success stories and more.

Financial recap

Reacting quickly to stay financially strong

Jeff Costello
Chief Financial Officer

Every year starts with a focused, strategic business plan and goals. This plan includes sustaining the business and building financial strength so we remain right where we want and need to be – here for our community. At the beginning of 2020, we had no idea what we were in for or that it would require the attention and commitment of every Beacon team member.

When the pandemic hit, we had to adapt quickly. We immediately secured PPE to keep our frontline associates, clinicians and physicians safe. We adjusted our operations based on the quickly changing demand for services. In the early stages of the pandemic, we were constrained by the state on elective cases while awaiting a surge that never occurred. The constraints from the pandemic resulted in severe disruptions to our revenue and business model. In response, we developed a Business Restoration plan that allowed us to continue to provide needed services while maintaining our financial health (see below).

The pandemic dealt another blow in late 2020 with a high inpatient surge across the community. Again we quickly pivoted services to meet the critical inpatient need while deferring elective care in the hospitals. This created both revenue and expense challenges as we wrapped up the year. But, fortunately, we were well positioned and were able to successfully meet the high demand from the community. As we wrapped up the year we once again found ourselves needing to quickly pivot through our business restoration efforts. The conscientious effort to proactively manage our financial strength through the ups and downs of the pandemic this year allowed us to focus on providing outstanding care while continuing the necessary support for our associates and community. The pride every Beacon team member feels contributed to our ability to deliver during and through a year like 2020.

Business Restoration plan
As the state eased restrictions in late spring, we immediately deployed our Business Restoration plan to quickly meet the needs of our communities while restoring revenues and creating efficiencies to minimize the impact on our associates, our care and our bottom line. The following graphic illustrates our approach.

Achieve desired state

Impactful stories

Connecting with heart

Even though we all faced a tough year, our patients, associates and providers inspired us and created some touching stories and connected with heart. We were committed, strong and determined in our goal to make a difference.

Watch Tami Slaven, the first intubated COVID-19 patient in Elkhart, reunite with the nursing team that helped her survive.

Hear Bri Poorman, RN, talk about the perseverance and grit that she and our frontline workers shared.

See Dr. Michelle Bache, Vice President of Medical Affairs at Elkhart General Hospital, cry tears of joy after receiving the first Beacon COVID-19 vaccine at the location.

Watch our 1,000th COVID patient, Bennie Paton, retired elementary school teacher, be discharged from Elkhart General Hospital.

The Foundation

Supporting the community we’re committed to serve

Susan King
Beacon Health Foundation

Beacon Heath Foundation is a 501 (c) (3) nonprofit organization dedicated to inspiring and stewarding philanthropic support for all health services, programs and facilities of Beacon. As a community-based, not-for-profit health care organization, Beacon invests all of its revenue back into its services and the local community. Philanthropic gifts are essential to sustaining and enhancing the “margin of excellence” that distinguishes Beacon as a top-rated health care provider and vital community asset.

Funds raised by the Foundation help provide services and support including:

  • Nursing education
  • Community health initiatives
  • Beacon Children’s Hospital
  • Equipment & facility upgrades

Through dedicated outreach by the Foundation and the generosity of community members:

Your gifts at work

Our Community Impact

Improving our communities’ well-being

At Beacon, we believe our responsibility to our community reaches beyond what you might expect from a health care system. We invest in our entire region’s health, working with dedicated community partners to provide preventative medicine, health education and financial assistance to those who need it most.

Through all of 2020’s challenges, we maintained a strong presence in our communities. It focused on protecting against other public health threats through our numerous Community Impact programs and efforts.

In our four priority areas — healthy body, family, mind and spirit — we create positive change for thousands of community members. From supporting cancer patients beyond diagnosis to supporting opioid addiction recovery, being there for parents in the community to building healthy habits with local families and youth — it is our honor to continue serving our community.

Changing lives in our communities

Responding to community flows from our mission. In fiscal year 2019*, Beacon Health System provided $60 million in community benefit including care of people living in poverty.

*The fiscal year for which community benefit information is most recently available.

Growing forward together

A heartfelt thank you

“2020 tested us all. But we persisted and came out stronger. Our commitment to our associates, patients, their families and every community we serve continues through 2021. We remain focused on strengthening the quality and number of services we provide. We’re committed to addressing health disparities, access to care and quality resources for every member or our communities. We will earn and keep your trust to provide not just the care you need, but what you expect and deserve. Once again, thank you to Beacon associates, providers, community leaders and businesses for working together through 2020. I look forward to continuing and expanding our efforts in 2021.”

— Kreg Gruber, Chief Executive Officer

“Thank you, Beacon associates, providers, community leaders and businesses … and all of Michiana.”