Strong financial performance

The examples of how this was achieved in 2011 are wide-ranging. They included designing new processes to provide better and more efficient care, effective resource allocation and cost management.

Despite a lackluster economy and sweeping changes in healthcare, Backus achieved an operating margin of $24.9 million, or 9%, in fiscal year 2011. As a not-for-profit, Backus reinvests this margin to improve patient care.

Meanwhile, the hospital was able to increase its number of employees compared to 2010, and receive state and national recognition for the programs and services it provides.

Backus Senior Vice President and Chief Financial Officer Dan Lohr said these accomplishments were made possible because of Backus’ strong financial position. However, he explained that it costs more than $700,000 per day, every day of the year, to run the hospital, and the hospital is on track to spend all or more of its 2011 operating margin on the Plainfield Emergency Care Center project; investment in employee benefits; healthcare information technology; new programs; physician partnerships and other community collaborations.

Giving back to the community

Also at the meeting, Mr. Whitehead announced that Three Rivers Community College is the recipient of the 2011 William A. Slater President’s Award.

The award honors people and organizations that collaborate with Backus to help improve health and quality of life in the region. It was given to Three Rivers for “leadership and innovation in nursing education.”

The President’s Award includes a $10,000 gift, which will go to the Three Rivers Community College nursing program’s Veronica W. Cronin Nursing Scholarship Fund, which was established by former Dime Bank President Jim Cronin, a longtime member of the Backus Board of Trustees and community activist whose mother was a nurse.

Ellen Freeman, a Professor of Nursing and Director of Nursing and Allied Health at Three Rivers, accepted the award and was thankful for it. However, she said Backus helps Three Rivers throughout the year. She said the hospital’s generosity includes major gifts for its nursing lab, equipment and technology including patient simulators for teaching and on-the-job training Backus provides to ensure Three Rivers nurses are ready to provide high quality, safe care when they graduate.

“Thank you from the entire nursing department, and all of our students,” Ms. Freeman said.

Board leadership

Three new members were added to the Board of Directors and Board of Trustees, including two new physicians — Dr. Donna Romito, a pulmonologist; and Dr. Stephen Briggs, an obstetrician and gynecologist. They join Medical Staff President Dr. Bert Coppotelli, and Medical Staff Vice President Dr. Mark Tramontozzi, bringing the total number of physicians to four on the 15-member board. The additional new member is Paul C. Maxfield, CPA, Chief Financial Officer for the A/Z Corporation, a nationally recognized construction, operations and maintenance services firm with offices in North Stonington. The Board also recognized the service of outgoing members Grace S. Jones, PhD, and Todd Postler.