Corporate

Message from the Chairman and CEO

Dear Friends,

The past two years have been incredible in the life of Redstone. These times brought significant challenges, and witnessed tremendous growth and success for our organization. We have learned in recent years, that standing courageous and being willing to take risks is an art form. We creatively engage the challenges and the opportunities and Redstone continues to flourish.

Consider our successes of the past two years:

• We were the recipient of the Power of Work Award from Goodwill Industries, acknowledging organizations making major impact on the lives of people with barriers.
• Again for the past two years we received a Healthiest Employer Award as recognized by the Pittsburgh Business Times
• We introduced a “straight rental program” on our North Huntingdon and Murrysville campuses and have welcomed approximately 20 new residents through this program. The straight rental program is especially satisfying for those who do not believe they will have need of benevolent care and who wish to minimize their financial investment in a Life Plan Community.
• We constructed three new villa homes on the North Huntingdon campus and see that community reaching completion.
• We formed Redstone Management LLC to provide management services to our neighboring Redmont Village in Greensburg.
• We reduced the cost of Benevolent Care by over $250,000 annually while still providing exceptional care and service to those in need.
• We adapted to the fast-paced environment needed for a nursing and rehabilitation center to survive in today’s world. Our navigation department managed 1,232 referrals and 566 nursing admissions over the past year. We are a preferred provider for UPMC and have been selected by Highmark/AHN as a Center for Excellence in the areas of Stroke Care, Heart Care, and Orthopedic Care.
• Our partner organization Senior Independence has been rebranded as Redstone@Home and continues to thrive providing home care, home health and hospice within our Redstone communities and the external community. Embarking on this service line several years ago was a risk, but as a result we have creatively addressed home and community based service needs.
• Our Promises Kept Campaign Phase II is nearing its goal, making it possible for us to embark upon the exciting construction project of building a new elevator and admissions/discharge area for the nursing center in Greensburg.

Likewise, we faced significant challenges over the past two years

• In order to balance the budget in 2016, we launched austerity measures that included staff reduction in non-clinical areas and salary freezes for our senior leaders. While these changes were not easy, the measures resulted in an important savings of over $800,000. This austerity program set us back on the right course for financial strength and growth.
• We made the difficult decision to outsource dining services in order to control rapidly escalating costs. Our provider, Morrison Community Living, continues to adapt their programs in order to improve the dining services that our residents need and deserve.
• Declining population, especially of young adults in the region, along with the rising costs of employee benefits, makes building and retaining a workforce our greatest challenge.
• We face many unknowns related to changes in the Affordable Care Act, and the funding of Long Term Services & Supports Program (LTSS) in the state. Nursing home reimbursement is not keeping pace with inflation, resulting in a net loss of at least $20 per patient per day in the nursing home. Additionally, the annual survey processes of the Department of Health and the state Department of Human Services have been in transition and have created some challenges.

These are challenging days for all who serve in non-profit healthcare and senior services. But we want to assure you that Redstone is courageously preparing the canvas for a bright future. We will make financial adjustments as necessary, stay committed to a strong marketing plan, focus our attention on quality and satisfaction, remain one of the region’s strongest employers, enhance and improve our communities and services, and stay true to our roots of faith and service. This “art form” to which we are called is essential.

As the leading provider of senior services in this region, we are grateful for this mission to which we are called. As always, we are thankful for all that you do to make this mission possible. Your work, your trust, your gifts, your volunteer hours, your encouragement, and your love make this work beautiful.

May God’s blessings continue to be with all of us as we create the future.

With Sincere Thanks.

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