Andis Robeznieks' article about changes at Catholic Health Initiatives (“Shifts at CHI,” Sept. 14, p. 10), which focused on investment losses during the first nine months of fiscal 2009, provided an incomplete portrait of the organization's true financial picture over the yearlong reporting period. Like virtually every organization in this country, CHI experienced significant investment losses during the severe market downturn in 2008 and 2009. However, audited financial statements for the full fiscal year, which were approved by the CHI Board of Stewardship Trustees after the article appeared, reflect a more accurate and up-to-date description of the organization's financial performance. For the full fiscal year, CHI's investment losses were reduced by more than one-third, to approximately $623 million, a significant difference from the $931 million for the first nine months of 2009. During a year marked by the worst economic crisis since the Great Depression, CHI's investment loss was 14%—well below, for instance, the 18% average investment loss for large endowments over that same time frame. In fact, through the dedication of its employees and the implementation of a series of operational improvements—including supply-chain savings, improved revenue-cycle management and expense reductions, among others—CHI was able to strengthen its healthcare ministry during a very challenging year, posting operating income of $143 million and a positive operating margin of 1.7%. We felt this information would be important to share with readers of Modern Healthcare.
Kevin LoftonPresident and CEOColleen BlyeExecutive vice president and chief financial officerCatholic Health InitiativesDenver