2006 Annual Report

TABLE OF CONTENTS

A Message from Our Chief Executive Officer................................................................................................. 4-5

We Are Hardwired to Fulfill Our Mission......................................................................................................... 5-6

We Are Focusing on Promoting Positive, Healthy Aging..................................................................................... 6

People Want to Remain in Their Homes............................................................................................................ 7

Servant Leadership is Our Role........................................................................................................................ 7

Leadership Team............................................................................................................................................ 8

We Serve Our Community............................................................................................................................... 9

Sunshine Terrace Foundation Board of Directors.............................................................................................. 10

Milestones We Reached in 2006................................................................................................................ 11-12

We are a Campus of Services and Choices..................................................................................................... 12

Our Sunshine Terrace Foundation Services..................................................................................................... 12

Our Goal is Patient, Family and Employee Satisfaction................................................................................ 13-14

Every Job and Every Department is Vital to our Quality of Care and Service................................................. 14-15

Employee Recognitions............................................................................................................................. 16-17

Our Donors are Extraordinary......................................................................................................................... 17

The Sunshine Terrace Foundation Honor Society Members.......................................................................... 18-19

Our Dashboard, It helps tell our Story!........................................................................................................ 20-23

2006 Donors of $100 or More......................................................................................................................... 21

Our Volunteers Bring Our Community to Our Patients...................................................................................... 22

Uncompensated Care............................................................................................................................... 22-23

Our Visionary Board of Directors.................................................................................................................... 24

Our Talented, Dedicated Leadership Team...................................................................................................... 24

Volunteer Community Advisory Councils—They Help Us Bring the Community to Us.................................... 24-25

Other Dynamic Committees...................................................................................................................... 25-28

Consultants—They are Part of Our Team........................................................................................................ 28

Figures

Figure #1, We Serve Our Community............................................................................................................... 9

Figure #2, The Sunshine Terrace Foundation Services..................................................................................... 12

Figure #3, We Family/Client Satisfaction Levels at Our Centers........................................................................ 14

Figure #4, Employees of the Month................................................................................................................ 16

Figure #5, 2006 Employees of the Year........................................................................................................... 16

Figure #6, Quality of Life Awards.................................................................................................................... 17

Figure #7, Tenure Awards.............................................................................................................................. 17

Figure #8, The Sunshine Terrace Foundation Honor Society Members.......................................................... 18-19

Figure #9, Sunshine Terrace Foundation Financial Ratios, 2004-2006................................................................ 20

Figure #10, Donations 2002-2006................................................................................................................... 20

Figure #11, 2006 Donors of $100 or More........................................................................................................ 21

Figure #12, 2004-2006 Volunteer Hours by Center........................................................................................... 22

Figure #13, Uncompensated Care, 2003-2006................................................................................................. 22

Figure #14, Uncompensated Care, 2004-2006................................................................................................. 23

From Our CEO

Sara V. Sinclair, RN, CNHA, Fellow of ACHCA

Chief Executive Officer

Dear Friends of the Sunshine Terrace Foundation:

It has been my personal and professional privilege and honor to serve the Sunshine Terrace Foundation patients, their families, our employees and our board of directors for over 23 years! As many of you know, I will be leaving my position in 2007. It is a bittersweet decision, but it is time. Please know I truly love this organization and everyone associated with it, and always will! The memories of these years are poignant, highly valued, and lasting. We have weathered many storms with very rough seas, yet our ship with its travel plan set for the finest quality of care, service, and quality of life for our patients, their families, and our employees continues on course with unfailing dedication! I send my heartfelt thanks to everyone involved for the marvelous opportunities and experiences I have had over these 23 plus years.

People frequently ask me if I am retiring; no, I am not. I plan to continue to be gainfully employed. Even though I am 65 years old, I don’t want to retire as yet. Those who know me are fully aware of my belief that 65 is just a number. I want to continue to give and serve.

It is the people involved with our organization who make it extraordinary. It is the people of this community who make us what we are! These people include our loyal volunteers, including our dedicated board members; our hard-working, compassionate and caring employees in every department in each of our centers; our consultants; our city and county officials; our patients and their families; and of course, those who choose to donate funds to assist us with our capital campaigns, equipment needs, training needs, and to help us cover the very real costs of our uncompensated care.

The Sunshine Terrace Foundation is unique and has earned its fine reputation. We must be proud of it, and we must never forget to be grateful to L. Boyd Hatch for his vision in 1948. In October of 2008, we will be 60 years old! I hope we will celebrate that landmark anniversary, and it would be a good time to open our time capsule buried on our 50^th anniversary.

We work hard to be a model of excellence in our field. This can’t be accomplished without an unflagging focus on our mission and vision, and true dedication to our values. We are working at all times to be a flagship in the vital field of long term and rehabilitative health services. I am particularly proud we have been fully accredited since 1988. This takes extra professional effort and dedication---it isn’t easy. My deepest gratitude goes to our great team for their dedication to being accredited. It is particularly important to note that accreditation is voluntary, and in our hyper-regulated field, it is a decision which is not easy to make. We are, however, dedicated to reaching for the highest levels of excellence, transparency, and continuous quality improvement. That is our culture here. This willingness to go the extra mile is a key factor in our success.

I also want to spotlight our leadership team. Each member is focused on our mission and vision, and strives to live our values. Each tries to be the role model for his or her employees, and continually works to improve his or her leadership and professional skills. No one can ask for more than that!

The purpose of this annual report is to tell our story! We have a great one to tell, and I hope you find it not only interesting, but inspiring. We are proud of the work we do, we are proud to serve all people who need our care regardless of their ability to pay or source of reimbursement, and we are focused on fulfilling our mission with integrity and skill.

Thank you for your trust, support, and understanding over the years. Our community is most fortunate to have the Sunshine Terrace Foundation, and the Sunshine Terrace Foundation is even more fortunate to have the community’s support and the gift of not-for-profit status.

Your comments and ideas are welcome! I can be reached at 435-754-0216 or sarasinclair@sunshineterrace.com.

With deep appreciation,

Sara V. Sinclair, CEO

We Are “Hardwired” to Fulfill Our Mission

“Wellness, independence, dignity, and quality of life for those we serve”

This mission is our guiding light at all times, and is aimed at our three prime customers---our patients, their families and our employees.

In order to consistently fulfill our mission we must individualize our approaches to these three all important sets of people. Each person is unique, and has his or her own needs, expectations, and challenges which we must take into full consideration.

As our team does its work 24 hours per day, 365 days per year, we try to achieve full buy-in to our mission, vision and values from each of our employees.

In the September of each year our employees and our leadership team develop our operational strategic goals for the coming year for the overall organization. Then the leaders of our rehabilitation/skilled nursing facility, our adult day center, and Terrace Grove, our assisted living center each develop specific objectives which will result in the accomplishment of the overall strategic goals. Our board is involved with these actions, and is kept fully informed as these processes take place, and then in October the board members meet and develop their umbrella goals for the Sunshine Terrace Foundation. It is beautiful to see how well this process works. Our board and our leadership/staff team are in unison due to the uniting power of our mission and vision statements.

Every 3-4 months during the year we review our progress on the center specific objectives, the operational strategic goals, and the board’s umbrella goals. In 2006, we were delighted with the progress we made in each area. We didn’t accomplish everything, but we came close, and we made sure that circles which were not quite closed in 2006 are a focus in 2007.

Following are the board’s goals and the operational goals for 2007:

Board of Directors’ 2007 Strategic Goals

Actively support efforts to recruit, train and retain employees who share our organization’s values.
Develop and approve a comprehensive plan for fund raising.
Conduct the CEO succession and transition successfully.
Complete the renovation of the rehabilitation/skilled nursing center.
Develop a comprehensive plan for the future services to be provided to the community which will make maximum use of our facilities and provide needed services to our customers.

Operational Goals for 2007

Achieve consistent employee engagement.
Achieve effective relationship building with all stakeholders.
Achieve and maintain financial stability for the Sunshine Terrace Foundation.
Enhance our competitive advantage.
Assure emergency preparedness.

As noted earlier, there are center specific objectives for each of the overall operational goals noted, and each objective is time-measurable and has responsibility for its completion assigned.

To achieve these goals takes a positive attitude, and rest assured we are working hard to maintain a “can and will do” attitude at all times.

“Our lives are not determined as much by what happens to us, as by how we react to what happens; not by what life brings to us as much as by the attitude we bring to life. A positive attitude causes a chain reaction of positive thoughts, events and outcomes. A positive attitude is a

catalyst…a spark that creates extraordinary results!”

These goals may seem simple, but I assure you they are not---they are complex and will require a great deal of focus to achieve.

There are four issues which must be addressed across peoples’ life-span if Utah is to avoid crisis as its aging population grows according to the Utah Commission on Aging’s annual report entitled “Aging in Utah: Avoid Crisis, Maximize Opportunity”, published in 2006. At the Sunshine Terrace Foundation we believe we have a responsibility to assist with and promote positive, healthy aging for Utahns:

Financial security. If Utahns do not save sufficient funds for retirement, the burden on state government will increase. Similarly, if the state does not have adequate protection against fraud and financial exploitation, the results will be the same: individuals who have lost their assets will be at increased risk of being forced to rely on the state for services and support. We support the Utah Commission on Aging’s efforts to improve savings for retirement and to put systems in place to discourage fraud and financial exploitation.

Healthy aging. Aging is a natural process. It is not pathological, but if people do not focus on staying well through exercise, healthy eating, avoiding smoking, wearing their seat belts, vaccinations, and preventive screening tests, to name a few, healthy aging is not as likely as it should be. We join the Utah Commission on Aging in an effort to put healthy aging at the forefront of peoples’ minds. Our CEO has done a weekly radio program since 1997 on Utah Public Radio on healthy, positive aging. We focus on promoting wellness and independence for our patients, and our employees.

Quality information and referral. Services are available in the private and public sectors to help those who become increasingly frail as they age, but often these people and their caregivers do not know how to access those services. We are joining with the Commission on Aging in working to ensure people know what services are available to them and how to access them. The Sunshine Terrace Foundation’s CEO co-founded and co-chairs the Cache Community Health Council, an organization dedicated to promoting wellness and the availability of adequate health care resources in Cache Valley. Through this organization, for example, Cache Valley people now have access to 2-1-1, a toll-free number to identify health and human services available in our area of Utah. Our Adult Day Center Director chairs the Cache Community Coalition and the Alzheimer’s Support Group which provide caregiver education which includes access to service resources.

Health Care. Utah’s primary care services struggle with providing coordinated care and sufficient time with the primary care providers. When care is not coordinated and the person does not have adequate time with his or her physician the consequences can be quite severe. As we serve our patients at the Sunshine Terrace Foundation we work hard to inform them of the services available to them, and to support them to a seamless transition to other community services as needed.

Did you know that between 2005 and 2030 Utah is projected to be 6^th in the nation in total population growth? Utah’s dependency ratio (individuals 0-18 and 65 plus for every 100 working persons) will grow from 65.5 in 2005 to 88.1 in 2050. Our state’s 85 plus population will grow from 28,340 in 2006 to 59,470 in 2030, an increase of 110%, compared with an 80% projected nationally.

There are other pertinent factors we all need to be aware of as well: the savings rate in the U.S. has dropped below zero; 22% are not saving for retirement; 39% have less than $50,000 in savings. In addition, 64.5% of Utahns age 55 plus are obese or at least overweight, and 78% of geriatric physician practices in Utah report they are full or nearly full. These are wake-up calls, and the Sunshine Terrace Foundation is signed up to try to help!

We must have skilled, dedicated leaders to succeed. We are most fortunate to have well over 250 years of service at the Sunshine Terrace Foundation among the members of our leadership team. They are dedicated to continuous quality improvement of their individual leadership capabilities, in addition to our systems and processes within our organization.

Our leaders strive to be role models for all of our employees. They work hard to be professional, objective, fair and consistent, as well as genuine, caring, compassionate, and honest.

Each of our leaders knows continuous self-improvement and learning is a must in order to be successful. In addition, each of our leaders is fully aware of the need to be a teacher, cheerleader, coach and mentor. Each is here to serve our patients, their families and our employees in order to promote full achievement of our mission and vision.

Our objective is to be an aligned, creative, visionary organization which provides a life-affirming, satisfying, humane, and personally meaningful experience for our patients, their families and our employees.

We not only want to serve our prime customers, but we want to serve our community. We seek community involvement in our centers, but we also reach out into the community to do community service (see Figure #1, pages 11 & 12). Each of our leaders is strongly encouraged to be involved in some way with the external community.

Part of servant leadership is the promotion of excellence in interdisciplinary teamwork---we work hard to continually improve our ability to communicate, collaborate, coordinate and cooperate across the many disciplines which exist here---physicians, nursing, finance, dietary, rehabilitation specialists, housekeeping, laundry, maintenance, transportation, social work, recreational therapy, music therapy, etc. We must team effectively in order to provide the supportive net needed by our patients and their families to promote healing and a return to an improved level of wellness and independence. Our patients and their families are in the driver’s seat, we are their professional advisers.

It is also important to note we very much want to promote leadership skills in all of our employees, and strive to do so through providing a variety of educational opportunities on a regular basis.