Annual Report 2002-2003
A Letter from the President and Chairman
Sustaining momentum in times of change
As we reflect on the continuing success of the Palo Alto Medical Foundation (PAMF), we think of the question often asked by leaders of other medical organizations: "What is the secret to PAMF's success?" In thinking about how to answer that question, we return again and again to our values of excellence, innovation and caring. PAMF has been able to attract an extraordinary group of physicians, scientists and employees who are drawn to our organization by these three values and by a 72-year history.
During 2002 and 2003, our shared commitment to excellence, innovation and caring was manifested at every level of our organization, cultivating community goodwill, enhancing patient and employee satisfaction and, most importantly, enabling us to uphold our high standards of patient care. We were able to improve our services despite a difficult health care environment that has led other medical groups to bankruptcy. Our donors have recognized the strength and value we bring to the communities we serve and have expressed their appreciation through their ongoing support, for which we are most grateful.
Our commitment to health care quality and education extended beyond our own walls to reach people of all ages in our community. Several years ago we donated land for a new downtown Palo Alto child care center, which celebrated its grand opening in December 2002. The Education Division continued to strengthen its collaborations to benefit youth in our schools and support vital programs for our growing population of seniors. And we strengthened our commitment to serve Medi-Cal, Medicare and Healthy Families patients.
A major milestone of 2002 was the creation of the Santa Cruz Division of PAMF following completion of a professional services agreement with the Santa Cruz Medical Clinic, and the integration of the Clinic with the Sutter Maternity and Surgery Center and the Visiting Nurses Association. We believe the new Santa Cruz Division will serve as a prototype for integrated health care in the entire Sutter system.
PAMF is fast becoming the employer of choice among regional health care facilities. In 2002, the turnover rate of our Palo Alto Division was less than 15 percent – the lowest in nearly three decades of operations – and the Camino Division’s turnover rate went down by 9 percent. We also had great success in recruiting, welcoming 60 new physicians to the three divisions in 2002. Both employees and physicians gave us high satisfaction marks – the Palo Alto Division was rated No. 1 among medical foundations in the Experience of Work survey, which compared employee satisfaction at all health care facilities across the Sutter Health system.
This favorable internal assessment was validated externally. A Sutter-sponsored patient satisfaction survey gave high marks to PAMF, with the Santa Cruz Division achieving the highest ranking among all Sutter Health facilities. PacifiCare, one of the major health plans with whom we participate, ranked all three divisions in the top 10 percent of medical groups in the state. Blue Cross, another major health plan, awarded the Camino Division a special recognition for quality.
Improving access to care continues to be a central focus for PAMF, and we are happy to report that progress has been made in all three divisions. The Advanced Access initiative was fully implemented in primary care departments at the Palo Alto Division in early 2003 and will be functioning in the Camino Division by the end of the year. Advanced Access represents a commitment to see the patient on the day he or she wishes to be seen, even if that day is today, and to take care of all the needs of the patient at that appointment.
On the technology front, PAMF has achieved national prominence with our electronic medical record (EMR) project. The Palo Alto Division rolled out the fully functional EMR to all its physicians in 2002, and the Camino Division will follow suit in the near future. By mid-2003, more than 12,000 patients had enrolled in PAMFOnline, which enables patients to view test results, renew prescriptions, request appointments and view key components of their medical records online. In 2002, the Santa Cruz Division successfully installed MedSeries 4, the gold standard in hospital information systems.
Keeping patients healthy and out of the hospital has always been central to our approach to care at PAMF, and diagnostic technologies that allow early detection are vital to achieving that goal. In early 2003, we approved a two-year, $10 million plan to purchase state-of-the-art imaging equipment, including two new magnetic resonance imaging (MRI) machines, a computerized tomography (CT) scanner and a positron emission tomography (PET) scanner. Our new cardiac MRI machine, one of the most advanced installations of its type in the nation, should be available to patients by early 2004.
Even in a challenging economic environment, PAMF was able to exceed its philanthropic goals for 2002. Moving forward, we will continue to focus our fundraising on a new main facility for the Camino Division; a new clinical building for the Palo Alto Division; the Health Care Endowment Fund; the e-Health Initiative; and designated capital equipment.
Once again, our Board of Trustees deserves the highest praise for its support and guidance. Our heartfelt gratitude goes out to retiring Trustee and Chairman of the Board Charles Lynch, whose leadership has inspired us all. In closing, we must thank our extraordinary donors, physicians, employees and volunteers for their tireless dedication. They make the Palo Alto Medical Foundation a place where excellence, innovation and caring can be sustained, every day.
Duncan L. Matteson
Chairman, Board of Trustees
David Druker, M.D.
President and Chief Executive Officer
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