2024 Annual Report

Page 1


LETTER

DEVELOPMENT & GROWTH

ACCESS

PEOPLE

FINANCIAL PERFORMANCE

HEALTHCARE QUALITY

COMMUNITY

PROVIDER PIPELINE

ECONOMIC IMPACT

PROJECTS OVERVIEW

STRATEGIC PLAN

2024 ANNUAL SUMMARY

MISSION, VISION, AND GOAL

LETTER FROM THE CEO

Dear Grace Health Community,

As I reflect on the past year, I am filled with immense pride and gratitude for the remarkable spirit that defines Grace Health This past year was a testament to our unwavering commitment to our mission, marked by strategic investments and the extraordinary dedication of our team

A monumental achievement was our $2 75 million investment in the new Epic EMR system, which went live as planned last August. This powerful upgrade has fundamentally transformed the patient experience, offering unparalleled access and streamlined care through MyChart. Complementing this, our expansion of Patient Support Services (PSS) further enhances our ability to provide holistic and compassionate support. These advancements are not just operational improvements; they are direct investments in our patients' well-being and their seamless journey with us.

Programs like our essential 340B Pharmacy and Sliding Fee Discount (SFD) Program continue to make high-quality care affordable for more than 40,000 patients across southeastern Kentucky, proving that excellent healthcare can and should be accessible to all. The result of these combined efforts is an increase in total patient encounters, leading to a healthier community overall.

I am incredibly proud that, for the third consecutive year, Grace Health was a Best Places to Work in Kentucky winner. Based on direct feedback from our employees, it speaks volumes

about the purpose-driven environment we've built here It has also fueled our continued growth in staff, now at 486 full-time equivalents, including almost 100 providers.

Financially, Grace Health remains robust, demonstrating nearly 10% year-over-year growth and significantly outperforming state and national benchmarks. This strong financial health enables us to remain a pillar of stability in our region's health and economy.

Looking ahead, we are more energized than ever. We will continue to build upon this strong foundation, embracing innovation, nurturing our talented team, and deepening our roots in the community Our future is centered on sustained growth, exceptional patient care, and a steadfast commitment to enhancing health outcomes for everyone we serve.

Thank you for your trust, your hard work, and your belief in Grace Health.

Grace Health’s executive leadership team guides the organization with a shared commitment to advancing high-quality, compassionate care across southeastern Kentucky.

Together, Michael Stanley, Chief Executive Officer (CEO), Dr Kelly Evans, Chief Medical Officer (CMO), Chad Stevens, Chief Financial Officer (CFO), and Jeff Campbell, Chief Operating Officer (COO) bring a wealth of expertise, vision, and dedication that drive Grace Health’s mission forward. Learn more about each of these leaders and their vital roles in shaping our organization's future.

After a two-year contractual agreement as a management consultant, Mr Stanley (above far right) was hired as Grace Health’s Chief Executive Officer (CEO) in 2012 With almost 40 years of healthcare management experience, he currently serves on the Kentucky Primary Care Association’s Board of Directors and as Chairman of the Kentucky Health Center Network Board of Directors, making him uniquely qualified to fill the CEO position. Mike works closely with Grace Health’s team of officers and Board of Directors to ensure that Grace Health adheres to its mission while continuing to be a visionary in meeting the population's needs

In 2019, Mr Stevens (above second from right) earned recognition as one of the "Faces of Our Future" by the National Association of Community Health Centers’ Community Health Forum As the Chief Financial Officer (CFO) for Grace Health since its establishment in 2008, Chad brings over 20 years of expertise, primarily in healthcare and management services He recently led Grace Health to become the first FQHC in the nation to utilize a HRSA Loan Guarantee for a New Market Tax Credit $30+ Million Medical Campus Project. His passion lies in increasing patient access to affordable, high-quality, primary healthcare He consistently emphasizes the fundamental principles of "No Margin, No Mission" and the reciprocal relationship of "No Mission, No Margin "

Dr Evans (above second from right) joined Grace Health in 2013 and assumed the role of Chief Medical Officer (CMO) in 2016 Board-certified in Internal Medicine, she has practiced medicine in southeastern Kentucky for over 20 years As CMO, her contributions are integral to ensuring clinical compliance with performance standards Alongside her husband, George, she has raised their three daughters in Manchester, KY. Dr. Evans is active in her church, United Women in Faith, and the Girl Scouts. She is a caring and compassionate physician who truly embodies Grace Health's mission, with a heart for serving the underserved and demonstrating dedication to each community

Mr Campbell (above far left) has been affiliated with Grace Health since 2010 and has served in his current position as Chief Operating Officer (COO) since 2015 As COO, he has provided operational guidance over significant growth within the organization’s service area During his tenure, Grace Health has expanded to include women’s care, pharmacy, behavioral health, dental, and a variety of additional services at both existing and new medical sites. In collaboration with a strong CEO, executive, and senior leadership team, Jeff and his team have maintained a “mission first, people always” mentality that prioritizes the patient

A voluntary Board of Directors provides the administrative authority for the operation of Grace Health. A unique feature of Grace Health’s Board of Directors is that a minimum of 80% of its members are patients or clients who are current users of FQHC services The remaining members serve as constituent representatives for the different communities in which Grace Health operates a health center These individuals are selected for their expertise in health care, community affairs, local government, banking and finance, legal affairs, social services, trade unions, and other commercial and industrial concerns.

Melinda Bowling Laurel County
James Ed Garrison Clay County
Deno Gray Clay County
Loretta Lyttle Clay County
Amy Russell Bell County
Angie Singley Whitley County
Roger West Whitley County

ABOUT US

PILLARS TO SUCCESS

communities.

These pillars guide us in everything we do, from how we treat our patients to how we engage with our community By staying true to these principles, we can make a meaningful impact on the lives of those we serve, embodying the values of excelling, serving, reaching, and healing at the core of Grace Health

Founded in 2008 Founded in 2008 in Knox County, Kentucky, in Knox County, Kentucky, Grace Health has proudly served Grace Health has proudly served southeastern Kentucky southeastern Kentucky for 16 years. for 16 years.

HISTORY

expansion efforts began in 2012 with the opening of the Leslie County clinic, which was made possible by the Health Resources and Services Administration (HRSA) New Access Point (NAP) grant. Expansions continued in 2014 with the acquisition of Women's Health Associates, PLLC, the area's largest women's care organization Grace Health also utilized HRSA service expansion funding to add behavioral health services as a key strategy in building an integrated care model of service to meet patient needs.

Additionally, SBH services were introduced and have since thrived, encompassing 34 SBH sites across Leslie, Bell, Knox, and Whitley counties. These SBH sites mirror our primary care sites by offering medical, preventive dental, and behavioral health care to students in the areas Grace Health's commitment to quality resulted in recognition as an early adopter of the Patient-Centered Medical Home (PCMH) model of care by the National Council on Quality Assurance (NCQA) in 2015.

In 2016, Grace Health made significant strides by acquiring Barton, Watts, & Perry, P S C , the most extensive family medicine practice in Corbin, Kentucky. Concurrently, the organization utilized another HRSA NAP grant to establish a new clinic and SBH services, marking the first opportunity to serve the Pineville, Kentucky community. In 2016, the Leslie County clinic moved from Wooten to Hyden to increase access for a wider range of patients

In the subsequent year of 2017, Grace Health acquired Turner, Whitley, & Morton Internal Medicine, PSC, the market's leading internal medicine practice.

Additionally, the organization introduced its first in-house pharmacy location in Corbin during this period, increasing patient access to medications and prescription care coordination, and dedicated their first full-time providers to nursing home support.

In 2018, the expansion of women's care services continued with extensive renovations to create the region's largest Women's Care clinic. The same year witnessed the grand opening of the newly constructed Manchester Clinic, where all Grace Health services are provided under one roof, proving Grace Health's commitment to serving the community.

In December 2019, Grace Health expanded patient access by acquiring Mountain View Family Practice, PLLC, marking the first opportunity to serve the Laurel County community. Following this milestone, in January 2020, Grace Health launched its first pediatric clinic in Corbin.

Subsequently, in 2021, the organization expanded further by establishing a second clinic location in Laurel County, the Grace Health Levi Clinic, and opening another Whitley County site, the University of the Cumberlands (UC) Campus Clinic.

6 counties served Bell, Clay, Knox, Laurel, Leslie, and Whitley

Recognizing the urgent need for access to dental care in Leslie and Clay Counties, dental services were added to the Hyden and Manchester locations in the fall of 2022 using grant funds provided by the America Rescue Plan Act

In May 2023, Grace Health acquired Corbin Pediatric Associates, PSC, further solidifying the organization’s commitment to excellence by creating the largest pediatric provider in the region.

In November 2023, the Grace Health Medical Campus opened for operations, marking a significant milestone in the organization's growth journey as it concluded its largest capital project.

34 school-based health sites across Bell, Knox, Leslie, and Whitley counties

8 clinic locations with integrated primary care

8 nursing home or longterm care facility provider support in Clay, Laurel, Leslie, Knox, and Owsley counties LOCATIONS AND

CLINIC SITES

Hyden Clinic

21154 Highway 421

Hyden, KY 41749

606-672-1208

Levi Center Clinic & Pharmacy

934 South Laurel Road

Suite 1 (Clinic), Suite 5 (Pharmacy)

London, KY 40744

Clinic: 606-526-8604

Pharmacy: 606-526-9680

Manchester Clinic & Pharmacy

85 Highway 80 Manchester, KY 40962

Clinic: 606-596-0410

Pharmacy: 606-596-0413

Medical Campus

14462 N US Hwy 25E

Corbin, KY 40701

Clinic: 606-526-9005

Pharmacy: 606-528-5908

Mountain View Clinic & Pharmacy

272 London Mountain View Dr. London, KY 40741

Clinic: 606-877-2850

Pharmacy: 606-877-2743

Pineville Clinic

313 Cherry Street

Pineville, KY 40977

606-654-3338

The transformation of an 88,000-squarefoot former retail building into a state-ofthe-art medical campus highlights Grace Health's dedication to providing integrated care with excellence to rural southeastern Kentucky. This expansion consolidated five clinics into one location, providing patients access to all Grace Health services.

With 85 exam rooms, 10 dental operatories, a pharmacy, and leased space to a local hospital partner for specialty and diagnostic services, the new facility accommodates all patient primary care needs. Furthermore, the new facility reinforces Grace Health's mission to address unmet medical, dental, mental health, and substance use treatment needs in Laurel, Knox, and Whitley counties.

University of the Cumberlands (UC) Campus Clinic

49 West Sycamore Street

Williamsburg, KY 40769

606-400-6362

Women’s Care

1019 Cumberland Falls Hwy, Suite D141

Corbin, KY 40701

606-528-5527

As a result of the strong commitment to service quality, Grace Health received recognition among all health centers nationally in 2024 as a Health Center Quality Leader, Access Enhancer, Health Disparities Reducer, and for Advancing Health Information Technology (HIT) for Quality.

Grace Health employs more than 460 community members, including over 90 providers The healthcare teams and patient support staff collectively serve more than 41,000 persons annually.

Grace Health's commitment to employee growth and development is noteworthy, evidenced by the establishment of Grace University (Grace U) in 2017.

Grace U is a training program where employees have earned over 400 certifications. Grace Health’s dedication to fostering an employee-centered culture played a key role in its historic recognition in 2023 as Kentucky’s first FQHC to receive the Best Places to Work award from the Kentucky Chamber of Commerce. This commitment to workplace excellence was reaffirmed in 2024, when Grace Health earned the Best Places to Work distinction for the second consecutive year.

Throughout the organization's 16-year history, Grace Health has maintained its mission to show the love and share the truth of Jesus Christ to southeastern Kentucky, through access to compassionate, high-quality, primary health care for the whole person. Guided by a highly invested Board of Directors, comprising

At Grace Health, our mission is to show the love and share the truth of Jesus Christ to southeastern Kentucky through access to compassionate, high-quality primary health care for the whole person

Our vision is to have healthy people and healthy communities

We aim to expand and enhance clinical programs and services for our communities

DEVELOPMENT AND GROWTH

GRANTS OVERVIEW

Notably, federal awards supported the expansion of behavioral health and substance use treatment, including Medication Assisted Treatment (MAT), and extended evening and weekend clinic hours to improve access for underserved patients.

Grace Health also partnered with local detention centers to improve transitional health care for incarcerated individuals preparing for reentry into the community

KEY PARTNERSHIPS

Kentucky Primary Care Association

Support for Outreach and Enrollment staff and Community Health Workers connecting communities to care.

Baptist Health Corbin & Rural Health Network Development Program

Collaborative initiatives addressing mental health and substance use disorder needs.

Kentucky Highlands Investment Corporation (Career Ladder Project)

Funding for employee training and advancement opportunities.

At the state level, funding from the Kentucky Opioid Abatement Commission, the Kentucky Department of Public Health, and the Kentucky Opioid Response Effort (KORE) strengthened Grace Health’s work in opioid response, HIV prevention, and peer support services.

GRANT AWARDS

$1,100,000 (HRSA, over two years) Expand behavioral health services, including substance use disorder treatment and Medication Assisted Treatment (MAT).

Additionally, Grace Health benefited from key partnerships, including support from the Kentucky Primary Care Association, Baptist Health Corbin, and the Kentucky Highlands Investment Corporation, to bolster outreach efforts, address mental health and substance use challenges, and advance employee training and career growth

$1,000,000 (HRSA) Support the reintegration of incarcerated individuals within 90 days of release through enhanced access to primary care and enabling services through partnerships with local detention centers.

$1,000,000 (HRSA) Supports existing extended evenings and weekend clinic hours to increase access for underserved patients, support preventive care, and improve health outcomes.

$205,000 (Kentucky Opioid Abatement Commission)

Expand mental health and substance use services in Leslie County and strengthen MAT program supports.

$150,000 (Kentucky Department of Public Health)

Expand HIV testing, education, and referral to treatment services.

$54,279 (Kentucky Opioid Response Effort, KORE)

Fund a Peer Support Specialist for patients in substance use treatment and provide assistance addressing care barriers, especially for MAT participants.

ACCESS

Delivering essential health services for women of all ages, we are committed to their healing and well-being.

BEHAVIORAL HEALTH

Offering personal, confidential, and comprehensive services for children, adolescents, adults, and seniors to support their mental and emotional wellness.

Enhancing student health and emotional well-being with medical, dental, and behavioral health services.

2020-23 Patient Encounters Overview

School-Based Health (SBH) Patients

2,250

Veteran Patients

904 Patients Experiencing Homelessness

236 Patients who are migrant/seasonal workers

PATIENT SUPPORT SERVI

840,332 840,332 Outbound Calls

668,498 668,498 Inbound Calls

11,918 11,918 Diagnostic Orders

21,455 21,455 Referrals

Patient Support Services (PSS) enhances care coordination through efficient communication, scheduling, referrals, and medical record management The team manages diagnostic orders, lab tracking, and sliding fee schedule compliance to improve access and affordability.

In 2024, PSS handled 668,498 inbound calls and 840,332 outbound calls. Of these, 444,447 were routed to PSS queues, representing 66.5% of all inbound calls, with Scheduling, Patient Navigators, and Triage as the top queues.

PSS also processed 11,918 diagnostic orders and 21,455 referrals, ensuring timely access to needed services and supporting compliance and quality initiatives across the organization.

PHARMACY DASHBOARD

PATIENT ASSISTANCE PROGRAMS:

PROGRAM

Grace Health’s 340B Drug Pricing Program is a vital part of its mission to provide accessible, high-quality, and affordable care to the community. By leveraging 340B savings, Grace Health enhances patient care through its entityowned pharmacies, contract pharmacy partnerships, and clinical pharmacy initiatives that improve health outcomes and overall wellbeing These savings also allow Grace Health to expand services in underserved areas, ensuring that patients who might otherwise lack access to essential care receive the medications and support they need.

1186,669

Matt Cornelius, PharmD, Retail Pharmacist at Mountain View Pharmacy in Laurel County

128,504 340B Prescriptions Filled 58,165 Non-340B Prescriptions Filled

9,266 Employee Prescriptions

6,408

SFD Program Prescriptions 300

Grace Health’s clinical pharmacy services play a critical role in improving patient outcomes through comprehensive, patient-centered care. Under collaborative care agreements with other providers, pharmacists deliver services such as chronic disease management for conditions like diabetes and anticoagulation, medication reconciliation to enhance medication safety, and administration of shingles and RSV vaccines for elderly and at-risk patients In addition, Grace Health offers Medication Therapy Management (MTM) and participates in collaborative care initiatives to optimize pharmaceutical care throughout Southeastern Kentucky.

Currently, Grace Health is working on converting its entity-owned pharmacies to Epic-Willow, with a planned go-live date in late 2025 This transition will support greater collaboration between its pharmacies and clinics, allowing for a more integrated health care model.

PATIENT ASSISTANCE PROGRAMS

SLIDING FEE DISCOUNT (SFD) PROGRAM

As a Federally Qualified Healthcare Center (FQHC), Grace Health is federally funded and serves all patients regardless of their insurance or financial status As such, it offers discounted medical services through the Sliding Fee Discount (SFD) program Patients qualify based on household size and gross income and their medical, dental, and pharmacy costs are charged based on a fee schedule.

In 2024, Grace Health’s SFD Program provided patients with $557,652 20 in medical discounts and $74,690.01 dental discounts. As noted on page 18, patients benefited from $922,377 in SFD pharmacy savings.

HARDSHIP ADJUSTMENT AND ASSISTANCE FUND

Grace Health offers a patient assistance fund to help individuals with unexpected costs and provides patients with the opportunity to apply for a cost adjustment through the Hardship Application Last year, these programs provided more than $4,500 in savings to patients.

Grace Health is committed to eliminating barriers to medical care and recognizes that cost is one of the biggest challenges patients face. It is grateful for the opportunity to help patients get the care they need at an amount they can afford

$922,377

Full-time employees, those working 30 or more hours per week, are eligible for Grace Health’s comprehensive employee benefits package. Open enrollment, the designated period for making benefit changes, offers employees the opportunity to adjust their coverage, with the changes taking effect on the first day of the plan year Additionally, qualifying life events provide employees with flexibility to make benefit changes outside of the open enrollment period, ensuring that benefits remain responsive to their evolving needs.

EMPLOYEE ASSISTANCE FUND

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

FundsProvided 2022 2023 2024

The organization remains unwavering in its commitment to support its team members during challenging times. The Employee Assistance Fund, financed by voluntary contributions by Grace Health employees, underscores this commitment by providing crucial financial support to colleagues facing severe hardships. The fund is specifically designed to address and mitigate serious issues, such as safety risks, health complications, or life-threatening situations, ensuring the financial well-being and stability of staff.

In 2024, 15 employees received vital support from the fund, totaling almost $2,900 Grace Health is proud of the resilience and solidarity that this fund represents and remains committed to enhancing the lives of its employees through this valuable program A sincere thank you to all employees who contribute to this crucial fund.

BENEFITS OVERVIEW

Medical

Administered by UnitedHealthcare, preventive care, specialist visits, and emergency services are covered after meeting deductibles Health Savings Account (HSA) options are available with employer contributions made on a per-pay-period basis.

Dental

Services include exams, cleanings, and major services like crowns and bridges, with varying coverage percentages.

Vision

Benefits cover exams, frames, and contact lenses with allowances for services every 12 to 24 months.

Accidental Death & Dismemberment (AD&D) Insurance

Provided to eligible employees with options to purchase supplemental life insurance.

Disability Insurance

Offers income protection for both short- and long-term disabilities.

Financial and Professional Development

Covers mileage, travel, certification, and licensure reimbursements.

Additional Benefits

Accidental, critical illness, and hospital indemnity insurance plans, identity theft protection, a 401(k) retirement savings plan with employer-matching contributions, and the Employee Assistance Program

Established in 2017, Grace University (Grace U) supports participating employees in expanding their knowledge of patient care, earning professional credentials, and becoming more versatile team members.

In 2024, Grace U marked the successful launch of its first-ever dental assisting certification program, the National Entry Level Dental Assistant (NELDA) certification.

The introduction of the dental assisting program reflects Grace Health’s commitment to providing innovative opportunities for employee growth and skill development. Dental Director Dr. Kayla Fields and Dental Coordinator Jennifer Gibson were instrumental in developing and implementing the program,ensuringitssuccessinitsinauguralyear.

In addition to the new dental course, Grace U also offers Certified Clinical Medical Assistant (CCMA) and Certified Medical Administrative Assistant (CMAA) certification courses through the National HealthcareerAssociation(NHA).

Toreducefinancialbarriers,GraceHealthfullycovers the cost of these programs, compensates employees for their class time, and provides financial incentives, including bonuses and pay increases, for successful certification

In 2024, 99 certifications were earned across the three programs, bringing the total to 418 certifications earned over the lifetime. The pass rate for the year was 100%, bringing the lifetime pass rate to 99.5%. Compared to the national averages of 81.38% for CCMA, 61.68% for CMAA, and 63%* for NELDA, it’s easy to see the significance of Grace University.

Grace U continues to grow, with additional pharmacy and dental programs under development to provide more certification pathways.

WORKFORCE DEVELOPMENT

The organization remains committed to continuous learning and professional growth. To this end, the Human Resources (HR) department partners with Somerset Community College (SCC) to provide workforce development sessions for current and futureGraceHealthleaders

Trainingtopicsin2024included:

ConflictResolution

DeliveringConstructiveCriticism

EmployeeMotivation

HandlingaDifficultPatient

ManagingWorkplaceAnxiety

MiddleManager

StressManagement

A total of 108 participants benefited from these sessions. Additional training, including CPR certification, further supported employee preparedness and development.

Training sessions, workshops, and seminars offered to current & future leaders

7

108 Participants across seven events

Above: John Keeton, Director of Operations (left) is recognized by Chad Stevens, CFO, as the top scorer in the fall 2024 CCMA class

Grace Health Grace Health Kentuck Kentuck

Grace Health is honored t Best Places to Work consecutive year by t Commerce We were pro Qualified Health Center (F this recognition. This hon commitment to creating culture and employee exp

This award is significant feedback from our em honesty placed us amon Their dedication helps purpose-driven environment

This year, we were also thri our partners at the Kentuck and a fellow community health center in Western Kentucky. Through its advocacy and support of community health centers, KPCA plays a vital role in shaping the future of healthcare across the state

We are grateful to our entire Grace Health team for making this achievement possible and for continuing to make Grace Health a truly remarkable place to work.

FINANCIAL PERFORMANCE

FINANCIAL OVERVIEW

The total revenue for 2024 is $72.46 million, with Medical Patient Services contributing the largest share at 50% ($36.02 million). The 340B Pharmacy program follows at 27% ($19.34 million), while dental patient services, grants, retail pharmacy, and other sources contribute smaller portions, ranging from 8% to 4%

Total expenses were $72 4 million, with salaries and benefits being the most significant expense at 57% ($41 59 million). Supplies make up 24% ($17.02 million), while other expenses, including facility costs, professional fees, and contract services, account for smaller portions.

KEY FINANCIAL METRICS

Grace Health’s financial performance in 2024 reflects another year of remarkable growth and operational strength It continues outperforming state and national benchmarks for Federally Qualified Health Centers (FQHCs) Leveraging the most recent comparative data, Grace Health has maintained its position as a leader among Kentucky’s FQHCs and nationwide.

In 2024, Grace Health achieved a total revenue of $72,463,796, representing nearly a 10% year-over-year growth. By comparison, the 2023 average total revenue for Kentucky FQHCs was $31.1 million, and the national average was $34.3 million. Grace Health’s revenue exceeds state and national averages, underscoring its strong financial position and commitment to expanding access to care

Regarding patient volume, Grace Health served 47,209 patients in 2024, marking a significant 7 6% increase from the previous year This growth in unique patients, alongside an impressive 13.5% increase in total visits, reflects enhanced patient engagement and service delivery. The slight adjustments in reported patient counts during our transition to an electronic medical record (EMR) were due to the merging of duplicate patient charts, a process undertaken to achieve greater accuracy and efficiency in our records.

Staffing levels at Grace Health have also increased significantly, with the total number of full-time equivalents (FTEs) rising by 15 5% since 2023 This growth aligns with the organization’s strategic expansion and exceeds the averages for Kentucky and the national FQHC sector

Overall, Grace Health’s financial and operational performance in 2024 reflects a pattern of sustained growth, operational improvement, and a continued commitment to delivering high-quality care to our communities.

FINANCIAL INDICATORS

Grace Health monitors several critical financial indicators to ensure long-term sustainability and fiscal responsibility. These metrics include bottom line margin, days cash on hand, and days in accounts receivable (A/R), with established targets of:

Bottom Line Margin: >3%

Days Cash on Hand: >60 days

Days in A/R: <45 days

In 2024, Grace Health maintained performance above or near these benchmarks despite some yearover-year shifts. The 2024 bottom line margin was 0.1%, a notable decrease from 7.4% in 2023. While this margin is slightly below the internal target, it still compares favorably to the 2023 Kentucky FQHC average of 4.7% and the national average of 1.6%, demonstrating the organization’s capacity to maintain operational continuity during the most significant EMR system transition in Grace Health's history and other strategic investments.........

Days cash on hand remained strong at 71 days in 2024, though lower than 112 days in 2023. This figure exceeds the target threshold of 60 days, providing a healthy financial cushion for operations

Finally, days in accounts receivable (A/R) improved from 43 days in 2023 to 39 days in 2024, staying well below the 45-day target and reflecting efficient billing and collection processes.

Overall, while Grace Health experienced shifts in margin due to strategic investments and EMR system changes, the organization continues to meet or outperform key financial targets, reinforcing its commitment to both financial health and high-quality patient care.

Bottom Line Margin Days Cash on Hand Days in Accounts Receivable (A/R)

UDS

HEALTHCARE QUALITY

g including Quality Management, Patient Safety, Performance Improvement, Regulatory and Accreditation Standards, and Healthcare Data Analysis.

Tammy has been an instrumental leader at Grace Health since 2018, serving as Director of Clinical Quality for six years Her dedication to continuous improvement and patient-centered care is a testament to Grace Health’s mission of fostering healthier communities

Grace Health congratulates Tammy on this outstanding achievement and celebrates her ongoing contributions to elevating the standard of care. Her expertise and passion for quality improvement continue to drive positive change, ensuring that patients receive the highest level of care possible and truly fulfilling the mission of Grace Health

Grace Grace Health Receives Health Receives Community Health Community Health

Quality Recognition (CHQR) Program Quality Recognition (CHQR) Program Badges Badges

The Health Resources and Services Administration (HRSA) Community Health Quality Recognition (CHQR) program recognizes health centers that have made notable quality improvement achievements in access, quality, health outcomes, and health information technology for the most recent Uniform Data System (UDS) reporting period. Badges are awarded annually. In 2024, Grace Health received the following CHQR awards:

Health Center Quality Leader is awarded to health centers with the best overall CQM performance based on the average 2023 Adjusted Quartile Rankings (AQR) Badges are awarded in the top three tiers: 1st tier is Gold (top 1-10%), 2nd tier is Silver (top 1120%), and 3rd tier is Bronze (top 21-30%) Grace Health achieved Silver, a notable improvement over the Bronze ranking from the previous reporting period Continuing to strive for excellence in quality healthcare, the organization is reaching for the Gold award for the next reporting period.

Access Enhancer recognizes health center growth, indicated by earning at least one HCQL or NQL badge or improving by at least 15% in one or more Clinical Quality Measures (CQMs) in consecutive reporting years. Additionally, health centers must have a 5% increase in the total number of patients or patients receiving mental health, substance use disorder, vision, dental, or enabling services.

Health Disparities Reducer requirements include qualifying for the Access Enhancer badge and at least one of the following: improve by at least 10% in low birth weight, hypertension control, or uncontrolled diabetes CQMs and improve during the two most recent back-to-back reporting years for at least one racial or ethnic group and perform as well or better than the previous year for the CQM at the health center level

Advancing HIT for Quality requirements include meeting all of the following criteria:

Submit UDS data on patient sociodemographic characteristics

Offer telehealth services.

Exchanged clinical information online with key providers health care settings.

Engaged patients through health IT.

Collect data on patient social risk factors.

GRACE HEALTH ACHIEVES

SEVENTH CONSECUTIVE YEAR OF NATIONAL CARDIOVASCULAR HEALTH RECOGNITION

For the seventh consecutive year, Grace Health has received national recognition for its unwavering commitment to enhancing cardiovascular health across its communities This year, the organization proudly accepted 17 American Heart Association/American Medical Association (AHA/AMA) awards for outpatient program achievement.

These accolades acknowledge its dedication to significantly reducing the risk of heart disease and stroke by excelling in blood pressure management, high cholesterol, and Type 2 diabetes care

Its success is rooted in initiatives like Target: B/P, a national collaboration between the AHA and AMA designed to combat uncontrolled blood pressure through evidence-based quality improve-ment. Similar impactful programs guide its efforts in cholesterol and Type 2 diabetes management.

"This sustained recognition truly reflects the Grace Health teams' exceptional care and deep commitment to their communities," states Tammy Sizemore, MSN, RN, CNML, PCMH CCE, CPHQ, Director of Clinical Quality. "Being part of Grace Health is an incredible experience!"

GRACE HEALTH PARTICIPATES IN NNOHA LEARNING COLLABORATIVE

Members of the Grace Health Primary Healthcare and Dental Teams had the

Through this initiative, Grace Health successfully improved access to oral health services for diabetic patients. Notable achievements include:

Training dental assistants to obtain pointof-care A1C tests for diabetic patients, improving early detection and intervention

Enhancing communication between primary care and dental teams fosters a more integrated approach to patient care.

The knowledge and strategies gained from the learning collaborative have strengthened our service delivery and enhanced patient care coordination. As we move forward, we remain committed to building upon these integrated efforts to further improve overall health outcomes for our community

We extend our gratitude to the dedicated team members who participated and continue to champion the integration of oral health and primary care at Grace Health.

Above left: Overbee; Kayla Fields, DMD; Tammy Sizemore, RN; Day; Hannah Hall, RN; Kelly Evans, DO Above right: Fields and Day

LEVI CENTER CLINIC RECEIVES PRESTIGIOUS NCQA RECOGNITION

The Levi Center Clinic has been awarded the esteemed NCQA Patient-Centered Medical Home (PCMH) Recognition with Behavioral Health Distinction This honor reflects our commitment to providing high-quality, patientfocused, and coordinated care.

This recognition underscores our commitment to integrating behavioral health into primary care, enhancing access, communication, and overall health outcomes. Thank you for trusting us with your care.

“Many times, behavioral health conditions are first identified by a primary care provider... behavioral health care services in a primary care setting is a real opportunity for patients.”

Tammy Sizemore MSN, RN, CNML, PCMH CCE, CPHQ, Director of Clinical Quality, and Hannah Hall, RN, Clinical Quality Manager, had the pleasure of presenting the award to primary care providers Dr. Ashlee Robinson and April Hurley, APRN (left). Special thanks to Jerry Kunkel, PMHNP, who is not pictured, for his exceptional behavioral health services

Margaret E O’Kane President of NCQA
Above: Levi Center Clinic receives AMA/AHA recognition

COMMUNITY

COMMUNITY PROGRAMS

Grace Health’s Community Programs aim to improve the lives of people across Southeastern Kentucky

Grace Health recognizes that health encompasses not only physical well-being but also social and emotional connection It is committed to reaching as many people as possible. Whether at schools, workplaces, sporting events, or local fairs, Grace Health meets the community at every stage of life, sharing information about available programs and resources, including education, employment, and health care.

Part of that effort is provided by the Outreach and Enrollment team, primarily comprised of kynectors who, as described by the Kentucky Government website, are essential resources in their communities. They assist consumers and small businesses with eligibility and enrollment forms, helping them apply for Medicaid/KCHIP, KI-HIPP, and other health insurance options through the Marketplace.

74,910

TOTAL COMMUNITY

OUTREACH ENCOUNTERS

269

1,377

Kynectors are required to be unbiased and provide their services free of charge, educating and enrolling individuals, and breaking down barriers to healthcare access.

The tangible results of this dedicated effort were clear in 2024 Grace Health's Outreach and Enrollment team actively engaged with the community at 269 events, resulting in 74,910 meaningful encounters that helped connect individuals with essential programs and healthcare options.

COMMUNITY HEALTH WORKERS (CHWS)

Grace Health is proud of the continued growth of its Community Health Worker Program CHWs have become an essential part of its integrated health care system, helping patients access vital support services and resources that promote whole-person health They also play a key role in Grace Health’s outreach efforts by engaging with the public and community partners at area events, strengthening the organization’s connection to the communities it serves.

85,500 TOTAL COMMUNITY HEALTH WORKER (CHW) ENCOUNTERS

Its Community Health Workers (CHWs) participated in 125 outreach events, making 85,500 community contacts. Altogether, Grace Health’s outreach efforts spanned 394 events, reaching over 160,410 Kentuckians and assisting more than 1,377 individuals with enrolling or re-enrolling in health coverage

PROVIDER PIPELINE

Grace Health significantly expanded its commitment to developing future healthcare providers in 2024. The organization's robust student rotation program provided invaluable hands-on training and mentorship opportunities, demonstrating substantial growth compared to 2023

In 2024, Grace Health facilitated a total of 93 student rotations, a 27% increase from the previous year These experiences spanned 14 diverse rotation types, involving 48 different Grace Health employees. Of the employees who served as dedicated preceptors, 34 were providersand14wereancillarystaff,allofwhom werecommittedtoguidingthenextgenerationof healthcareprofessionals.

93 completed rotations

18 universities &programs

48 student placements

14 rotation types

Grace Health's network of academic collaborations also expanded, growing from 11 partnerships last year to 18 in 2024, ensuring a robustpipelineforfuturetalent.

The organization’s preceptors extended educational opportunities across all service area counties, impacting local communities and fosteringtalentwhereit'sneededmost

ECONOMIC IMPACT

Grace Health is vital in delivering healthcare services and driving local economic growth and stability. With 573 total employees, Grace Health is one of the region’s major employers, providing essential jobs and professional opportunities across multiple disciplines.

In 2024, Grace Health’s total salary investment reached $15,091,189.21, with an additional $3,018,237.85 allocated to fringe benefits (calculated at 20%) . This represents a total investment of $18,109,427.12 directly supporting the livelihoods of our employees and contributing to the broader economic wellbeing of the communities we serve. 1

Through these investments, Grace Health improves patients' health and strengthens the local economy, creates stable jobs, and fosters long-term community resilience.

PROJECTS OVERVIEW

Epic EMR Transition

Medical Record (EMR) system to increase the availability of information for patients in a modernized, easy-to-use portal

Investing $2 75M

Launched in August 2024

Pineville Clinic

Construction is planned for a new facility to house integrated medical, behavioral health, dental, and pharmacy services utilizing $1 million in USDA funding

The project has encountered delays due to unforeseen external circumstances. We will continue to keep all stakeholders informed about the progress and timelines.

ENHANCED PATIENT CARE WITH EPIC AND MYCHART

Grace Health is pleased to report on the successful $275 million investment and transition to its new Epic Electronic Medical Record (EMR) system, which went live as planned in August 2024. This significant upgrade has fundamentally reshaped and substantially streamlined the patient experience, delivering on the organization's commitment to providing superior, more individualizedcare.

A cornerstone of this transition is the full implementation of MyChart, powered by Epic MyChart has replaced the previous patient portal, providing Grace Health patients with unparalleledaccesstotheirhealthinformation through a contemporary, intuitive, and userfriendlyplatform.Patientsnowbenefitfrom:

Expanded information access: Easily view lab results, prescribed medications, immunization records, and health summariesanytime,anywhere

Streamlined communication: Securely message prescription refills, and manage appointments with

Integrated record keeping: For patients with existing MyChart accounts, their Grace Health data now automatically blends, furnishing a comprehensive and unified health record.

Epic's core objective of "higher quality, more personalized care that is simpler for patients, medical professionals, and everyone who makes healthcare happen" perfectly aligns with Grace Health's vision. The successful activation of Epic and the robust functionality of MyChart are already proving indispensable in achieving these aims, empowering patients and optimizing healthcare processes

PATIENT SUPPORT SERVICES (PSS) EXPANSION

The Patient Support Services (PSS) Expans

Project (pictured right) at Grace Hea completed in 2024, significantly enhanced organization's commitment to comprehens patient care This transformative initia added 5,500 sq. ft. to the existing 12,000 sq facility, boosting capacity for holistic supp alongside medical treatment.

The expanded space now features 12 priv workstations, 41 cubicles, and over 600 squ feet of dedicated training and meeting ar These additions were designed to fos collaboration and improve efficiency. By consolidating all patient support services into a single location, Grace Health has enhanced interdepartmental connections, streamlined communication, and elevated the overall standard of patient care.

This project reinforces Grace Health's mission to cultivate a compassionate and inclusive healthcare environment The PSS expansion ensures patients feel supported, empowered, and valued throughout their healthcare journey, reinforcing the organization's dedication to improving health outcomes and enhancing the overall quality of life for its patients and their families The 2024 completion of the PSS expansion reaffirms Grace Health's steadfast commitment to serving as a beacon of hope and healing in the community, ensuring every individual receives essential care, support, and resources for their well-being

MOUNTAIN VIEW CLINIC RENOVATION

Grace Health completed renovations at its Mountain View Clinic in Laurel County in December 2024. These renovations have enhanced the patient experience, featuring a refreshed appearance with new paint, ceiling tiles, and trim, as well as improved medical-grade rubber flooring for a cleaner and safer environment.

The clinic also implemented safety upgrades to meet OSHA and NFPA standards and improved the front reception area for clearer visibility and better patient interaction. These renovations are a part of Grace Health's commitment to providing high-quality, patient-friendly healthcare spaces

Purpose

WE HEAL PEOPLE

Vision

HEALTHY PEOPLE, HEALTHY COMMUNITIES

1 Strategic Goals Regional primary health care provider of choice

ACCESS - Improve Access to quality health care and services

QUALITY - Quality yields continuous performance improvement and financial sustainability

PEOPLE - Attract, engage, develop, and retain the best People

COMMUNITY - Meet Community needs

STRATEGICPLAN

Targets (3-5 years)

1. Organization Culture Patients First Continuous Quality Improvement

Data Integrity & Confidence

2. Empower Our People Enhance Grace "U" Employer of Choice

3. Elevate Patient Experience

2 Expand and enhance clinic programs and services Strengthen and transform financial position and sustainability

3

4 Advancement of Community Board of Directors

Core Values Needs Assessment

EXCELLING

Maintaining the highest standards and achieving them by continually measuring and improving our outcomes through integrity and teamwork.

SERVICE AREA

Counties: Bell, Clay, Knox, Laurel, Leslie, & Whitley

Total Target Population: 182,744

ECONOMIC

Poverty rate: 29.2% is double the state and national averages

4. Expand Clinical Footprint Pineville Laurel County/London Barbourville School-Based Health

5. Programs Expansion & Enhancement Women’s Care

Behavioral Health (SUD & SBH) Pharmacy Services

Dentistry (Clinic & SBH) Optometry

Early Childhood Dev & Education

6. Optimize Value-Based Payer Contracts

7. Technological Advancements Epic EMR Transparent AI Integration

Exceeding our patients' and/or fellow caregivers expectations for comfort and convenience

SERVING REACHING

Welcome change, encourage innovation, and continually seek better, more efficient ways to achieve our goals

HEALING

Demonstrate our commitment to world-class care by providing a caring supportive environment for our patients, patients' families, and fellow caregivers

Percent of children living in high poverty in the area is 100% compared to 40% for KY and 14% nationally

More than 50% of the population is NOT in the workforce

DEMOGRAPHIC

52.5% Working-Age Adults (18-24 yrs)

22.6% School-Age Children

17.8% are 65+ years old

HEALTH DISPARITIES

BARRIERS

Income & poverty levels

High levels of unemployment

Appalachian Geographical Area and lack of public transportation

Low educational attainment / health literacy

Housing

Food Insecurity

Diabetes, Cardiovascular disease, cancer, adult and child mental health, substance abuse, oral health, maternal health, high infant mortality rates, high adult smoking/vaping rates, including during pregnancy, adult and childhood obesity, childhood lead exposure, health literacy/education, and food insecurity

ACCESS TO CARE

Services for vulnerable populations in the service area: Primary Care, Pediatric Care, OB & Women’s Health, Substance Misuse Care, Dental, Vision, Childhood Development Screening

197,098

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