We are pleased to report to the community that in 2008, John Muir Health saw positive results from our operations and we were able to continue our contributions to the community. In 2008, John Muir Health's consolidated operating income was $34 million. Our charity care and community benefits totaled more than $34 million in 2008. However, consistent with the overall market, the health system's investment losses were $83 million. Largely as a result of the investment losses, John Muir Health experienced an overall loss of $49 million in 2008.

John Muir Health remains financially strong, however, and we continue to invest in the health of the communities we serve. We are proud to say that our commitment to the community remained strong, and in 2008 we demonstrated this in many ways. John Muir Health contributed more than $34 million in charity care and other community benefits. Our community benefit comprises the entire spectrum of healthcare including charity care costs; Medi-Cal shortfalls; mobile health and dental clinics; health screenings for the community including Every Woman Counts, a free breast screening program for uninsured and underinsured women; community health education seminars; services for seniors including care coordination, transportation to medical appointments and companion care; health education and support through elementary schools and faith communities; grants to community-based organizations addressing health needs through the John Muir/Mt. Diablo Community Health Fund and many other services. The largest portion of our community benefits contribution is devoted to the most vulnerable individuals in the community.

We also broke ground and began construction on an $800 million building program. On our Walnut Creek Campus, we are building a new five-story, 380,000 square-foot tower - The Thomas J. and Muriel T. Long Patient Care Tower. The new building will feature new private rooms for patients, ICU, Intensive Care Neonatal Nursery, additional surgical suites and a dramatic expansion of the trauma and emergency services. On our Concord Campus, a new five-story, 172,000 square-foot tower will house new private patient rooms, an expanded Emergency Department, and a centralized Cardiovascular Institute with four cardiac catheterization labs, 16 preoperative/recovery beds, a dedicated 12-bed cardiovascular intensive care unit, 49 telemetry beds, and a separate entrance and waiting area.

John Muir Health treats every patient, regardless of his or her ability to pay. As a not-for-profit organization, John Muir Health reinvests any financial surpluses into the community with new program implementation, advanced technology, community services and building programs. John Muir Medical Center - Walnut Creek campus also serves as Contra Costa County's only trauma center, which represents an enormous service commitment to the entire region.

With the uncertainty of the economy, John Muir Health is taking proactive steps to improve efficiencies, streamline processes and control expenses to help ensure that we remain financially healthy and are able to continue providing vital services to the community and funding our building program. We look forward to our continued role in improving the health of our communities with top quality programs and services and compassionate care.

John Muir Health
2008 Financial Information