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ETTINGREADYforHealthReformG17BONSECOURSHEALTHSYSTEMFiscalYear2012AnnualReporttotheCommunityStewardshipProgramTheStewardshipProgramwasoundedinSeptember2011withthevisiontoimproveBonSecoursHealthSystemsoperatingperormanceby150to200milliondollarsoverthreeyearswhileocusingonprosperityqualityandstewardship.Theprogramobjectivesareocusedonsystemnesseectiveuseoresourcesminimizingsystem-wideduplicationandbuildingcareers.ThesavingswillpositionBonSecoursortheanticipatedchangesromhealthcarereormincludingincreasedaccessorpatientsandreductionsinrevenue.Thecost-reductionopportunitywasestimatedromaxedcostassessmentperormedduringthesummero2011.Theprogramhasalsohadtheeectoenhancingcareersocertaintalentedstabyoeringthemaleadershipopportunity.TheStewardshipinitiativeembodiesresponsibleplanningandmanagementoresources.Theprogramincludes18initiativeteamsornearlyeveryaspectothesystemsoperations.ExistinginitiativesorclinicaltransormationsupplychainphysicianintegrationandemployeehealthandwellnesshavealsobeenbroughtintothisStewardshipstructure.InFY2012therstullyearotheinitiativesavingstotaledapproximately69.6million.ManyothesavingsresultedromstandardizationacrossthesysteminwhichBonSecoursuseditssystem-widevolumetonegotiatebetterpricesonservicesandsupplies.Someothecost-savingactionsincludesystem-widecontractsorclinicalassetmanagementdietaryservicesandoodandotherpurchasedservices.Additionaleortshavebeenundertakeninenvironmentalservicesacilitieslaundryandlinenrealestatesecurityandutilities.Another60millioninsavingsisprojectedorFY2013.FiscalYear2012FinancialsForthescalyearendedAugust312012BonSecoursHealthSystemreportedoperatingincomeo118.0milliona3.4operatingmargin.TheseresultsweresignicantlyimprovedromFY2011whichhadoperatingincomeo85.5milliona2.6operatingmargin.OperationallyacuteinpatientvolumesexceededFY2011by1.6andoutpatientsurgicalvolumeswerestrongexceedingthepriorscalyearby7.5.TheconsolidatedbalancesheetasoAugust312012indicatedassetso3.1billionexceededliabilitieso2.2billionoratotalnetassetpositiono843.5millionascomparedto851.0millionatAugust312011.Totalnetassetpositionisslightlylessthanprioryearduetothehighpensionliabilityadjustmentoanegative129millionosettingtheoperatingincome.Totalunrestrictedcashandinvestmentswere959.0millionrepresenting110daysodailycashoperatingexpenseswhichisunchangedromtheprioryear.Thedebt-to-capitalizationratioo57.0isalsofatcomparedtotheFY2011ratioo57.2andissignicantlylessthandebtcovenantrequirementso65.0.Atertheall2012meetingwiththebondratingagenciesStandardPoorsandFitchafrmedtheA-ratingstableoutlookandMoodysafrmeditsA3ratingstableoutlookonapproximately1billionooutstandingbondsissuedonbehaloBonSecoursHealthSystem.TheratingkeepsBonSecoursbondsintheuppermediumgradequality.TheagenciescitedthesystemsimprovedprotabilityinFY2012.OperatingIncome118.0millionTotalNetRevenue3.4billionAcuteDischarges131389AdjustedDischarges309304TotalCommunityBeneftDollars297.6million