2025 Annual Report

PROVIDING CARE TO SOUTHEASTERN KENTUCKY SINCE 2008

20 25

ANNUAL REPORT

TABLE OF CONTENTS CEO’s Message

3

Meet the Officers

4

Board of Directors

5

About Us

6

Development

10

Access

12

People

18

Financial Performance

24

Quality

28

Community

32

Strategic Plan

36

Annual Summary

37

LETTER FROM THE CEO Dear Grace Health Community,

Reflecting on 2025, I am filled with immense pride in what Grace Health has achieved. This year was defined by a steadfast commitment to our 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.

A major milestone occurred with the Epic implementation of Willow, significantly enhancing Pharmacy Services. Paired with the acquisition of Creech & Gibbs Pharmacy, this technology ensures patients have better access to life-saving discounted prescriptions. Also, MyChart engagement continues to grow, providing patients with improved access to personal health information, secure messaging with providers, and convenient online scheduling to better manage their care. HRSA recognized our commitment to accessibility by featuring the Expanded Hours Project at Hyden, Manchester, and the Medical Campus. I am proud to share that we passed our HRSA Operational Site Visit with flying colors, a testament to strong clinical and administrative integrity.

Our strength lies in our people. For the third consecutive year, the Kentucky Chamber of Commerce named Grace Health a Best Place to Work. We celebrated this culture in style at our “Grace Gatsby” employee event, enjoying the sounds of a live orchestra, acrobats, and live dancers. Beyond celebration, we invest in professional growth in our employees. In 2025, we hosted Certification Recognition and Pinning Ceremonies for 79 staff members and YTD 502 staff members—all trained with the full financial support of Grace Health.

When disaster struck London, Kentucky, Grace Health stood firm, providing immediate Tornado Disaster Relief for our affected team members. Our heart for the community also extended through supporting over 700 local events and outreach efforts during the year.

Heading into the future, your leadership team remains in close contact with state and national legislative partners. We actively advocate for our patients and develop strategic plans to mitigate any legislative challenges. We will explore every option to ensure patient care remains uninterrupted.

Thank you for your unwavering commitment to the Grace Health mission. Together, we are building a healthier Kentucky.

With gratitude,

Michael Stanley, CEO

2025 Annual Report | 3

MEET THE OFFICERS

Grace Health’s executive leadership team is dedicated to advancing high-quality, compassionate care across southeastern Kentucky. Together, Michael Stanley (CEO), Jeff Campbell (COO), Dr. Kelly Evans (CMO), and Chad Stevens (CFO) provide the vision, experience, and leadership that drive the organization’s mission and continued growth.

Jeff Campbell has been part of Grace Health since 2010 and has served as Chief Operating Officer since 2015. In his role, he has overseen significant operational growth across the organization’s service area. During his tenure, Grace Health has expanded services to include women’s care, pharmacy, behavioral health, dental, and additional offerings across multiple sites. Mr. Campbell works collaboratively with the executive and senior leadership teams to ensure operational excellence while maintaining a “mission first, people always” approach that prioritizes patient care.

Dr. Kelly Evans joined Grace Health in 2013 and was named Chief Medical Officer in 2016. Board-certified in Internal Medicine, she has provided care in southeastern Kentucky for more than 20 years. As CMO, Dr. Evans plays a vital role in ensuring clinical excellence and compliance with performance standards. She is deeply rooted in the community and remains actively involved in local organizations and service initiatives. Her compassion and dedication exemplify Grace Health’s mission and commitment to serving others.

Chad Stevens has served as Chief Financial Officer of Grace Health since its founding in 2008. With more than two decades of experience in healthcare finance and management, he has played a key role in guiding the organization’s growth and long-term sustainability. In 2019, he was recognized as one of the National Association of Community Health Centers’ Faces of Our Future, honoring emerging leaders who are shaping the future of community health care. Mr. Stevens is passionate about advancing access to affordable, high-quality healthcare and is guided by the principle: “No Margin, No Mission—and No Mission, No Margin.” This philosophy reflects his commitment to ensuring financial stewardship supports Grace Health’s mission of serving patients and strengthening communities.

Michael Stanley joined Grace Health as Chief Executive Officer in 2012 following a two-year engagement as a management consultant. With nearly 40 years of healthcare management experience, he provides strong strategic leadership and direction for the organization.

Mr. Stanley currently serves on the Kentucky Primary Care Association Board of Directors and as Chairman of the Kentucky Health Center Network Board of Directors. He works closely with the executive team and Board of Directors to ensure Grace Health remains aligned with its mission while continuing to meet the evolving needs of the communities it serves.

Together, this leadership team remains committed to guiding Grace Health with integrity, innovation, and a continued focus on improving the health and well-being of the communities it serves.

4 | Grace Health

BOARD OF DIRECTORS 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.

Melvin Scarberry Chairman Knox County

Hiram Cornett Vice-Chairman Leslie County

Jeff Hamlin Treasurer

Whitley County

Karen Hubbs, PharmD Secretary

Angie Singley

Amy Russell

Loretta Lyttle

Melinda Bowling

James Ed Garrison

Deno Gray

Damon Huff

Knox County

Laurel County

Whitley County

Clay County

Bell County

Clay County

Clay County

Leslie County

2025 Annual Report | 5

ABOUT US

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. Guided by our vision of Healthy People, Healthy Communities, we are committed to improving the health and wellbeing

of

the

individuals,

families,

and

communities we serve.

PILLARS TO SUCCESS Our strategic plan is built upon four Pillars to Success that guide our efforts and ensure the long-term sustainability of our organization: Access – Improve access to quality health care and services.

People – Attract, engage, develop, and retain the best people.

Quality – Drive continuous performance improvement and financial sustainability through quality care.

Community – Meet the evolving needs of the communities we serve.

These pillars reflect our commitment to providing exceptional care while strengthening the health of southeastern Kentucky. They shape how we serve our patients, support our team members, and invest in the future of our region.

Underlying every pillar are our core values of Excelling, Serving, Reaching, and Healing. We strive for excellence through integrity and teamwork, serve with compassion, embrace innovation, and create caring environments where individuals and communities can thrive.

6 | Grace Health

Above: Board Members and Executive Officers take part in placing a Bible in the foundation of Women’s Care, marking a moment of dedication and purpose.

By remaining faithful to our mission and focused on our strategic priorities, Grace Health continues to expand access, improve outcomes, and build healthier communities throughout southeastern Kentucky.

WE HEAL PEOPLE HEALTHY PEOPLE, HEALTHY COMMUNITIES

A C C E S S

P E O P L E

Q U A L I T Y

C O M M U N I T Y

EXCELLING, SERVING, REACHING, HEALING The mission of Grace Health 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.

JESUS CHRIST

17 YEARS OUR STORY

Grace Community Health Center, Inc., a 501(c) (3) non-profit Federally Qualified Health Center (FQHC), doing business as Grace Health, was founded with a mission to expand access to high-quality, compassionate healthcare throughout southeastern Kentucky. From its earliest days, the organization has remained dedicated to improving the health and wellbeing of the communities it serves.

In 2008, Grace Health began with its first clinic in Gray, Kentucky, followed shortly by a second location in Manchester. These initial sites laid the foundation for what would become a steady growing healthcare network focused on accessibility, affordability, and comprehensive care.

Over the years, Grace Health has expanded significantly to meet the evolving needs of the region. Today, the organization operates eight standalone integrated primary care clinics, including a women’s care clinic and a university campus clinic. In addition, Grace Health supports 34 school-based health sites and provides care services to eight nursing homes, extending its reach to patients of all ages across multiple settings.

A key driver of this growth has been the organization’s commitment to strategic expansion. In 2012, Grace Health opened its Leslie County clinic through a Health Resources and Services Administration (HRSA) New Access Point (NAP) grant, marking a major step forward in increasing access to care. This momentum continued in 2014 with the acquisition of Women’s Health Associates, PLLC, significantly expanding women’s health services in the region.

Around this time, Grace Health also began integrating behavioral health services into its care model through HRSA service expansion funding, reinforcing its commitment to treating the whole person.

In 2015, Grace Health was recognized as an early adopter of the Patient-Centered Medical Home (PCMH) model by the National Committee for Quality Assurance (NCQA), highlighting its dedication to coordinated, patient-focused care. The following year brought multiple milestones, including the acquisition of Barton, Watts & Perry, P.S.C., a leading family medicine practice in Corbin, and expansion into Pineville through another HRSA grant. The Leslie County clinic was also relocated from Wooten to Hyden to better serve patients, while the organization introduced its first in-house pharmacy and expanded nursing home services.

Growth continued in 2017 with the acquisition of Turner, Whitley & Morton Internal Medicine, P.S.C., further strengthening Grace Health’s presence in the region. In 2018, the organization opened its newly constructed Manchester Clinic, bringing multiple services under one roof, and completed major renovations to create the region’s largest women’s care clinic.

2025 Annual Report | 7

Grace Health continued to broaden its reach in 2019 by acquiring Mountain View Family Practice, PLLC, marking its entry into Laurel County. In early 2020, the organization opened its first pediatric clinic in Corbin, further expanding services for younger patients. Additional growth followed in 2021 with the opening of the Grace Health Levi Clinic and the University of the Cumberlands Campus Clinic.

Recognizing ongoing community needs, Grace Health expanded dental services in 2022 to its Hyden and Manchester locations through funding from the American Rescue Plan Act. In 2023, the organization acquired Corbin Pediatric Associates, PSC, creating the largest pediatric provider network in the region.

Later that year, Grace Health reached a significant milestone with the opening of the Grace Health Medical Campus, completing its largest capital project to date.

Today, Grace Health offers a comprehensive range of services, including women’s care, pediatrics, family practice, internal medicine, dental, behavioral health, pharmacy, school-based health, nursing home care, outreach, and enabling services. This integrated model ensures patients receive coordinated, wholeperson care tailored to their needs.

From its beginnings as a single clinic, Grace Health has grown into a regional healthcare provider dedicated to expanding access to care, improving health outcomes, and strengthening the communities it serves.

Throughout its 17-year history, the organization has remained steadfast in its mission to show the love and share the truth of Jesus Christ in southeastern Kentucky through access to compassionate, highquality primary healthcare for the whole person.

Guided by a highly engaged Board of Directors and supported by dedicated employees and community partners, Grace Health continues to advance its mission with purpose and integrity. As the organization looks to the future, it remains committed to growth, innovation, and ensuring that every individual has access to the care they need to live healthier lives.

8 | Grace Health

LOCATIONS 8

CLINIC LOCATIONS

DENTAL LOCATIONS

4

PHARMACY LOCATIONS

SCHOOL BASED HEALTH LOCATIONS

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

8

3

34

NURSING HOME SUPPORT

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 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

2025 Annual Report | 9

DEVELOPMENT GRANTS OVERVIEW

Grace Health’s Development and Growth team plays a critical role in securing and managing funding to support the organization’s mission and expand access to care across southeastern Kentucky. Through federal, state, and regional grants, efforts have focused on strengthening workforce capacity, enhancing outreach, expanding behavioral health services, and improving quality of care.

Guided by a recent three-year Community Health Needs Assessment, the organization continues to align its services and strategic priorities with the needs of the communities it serves. The Federally Qualified Health Center (FQHC) HRSA 330 Program remains the largest grant funding source, supporting integrate care across all six service area counties. The next Service Area Competition award is providing over $5 million annually for a four-year period beginning in 2026.

In 2025, Grace Health retained and secured significant funding through the Health Resources and Services Administration (HRSA).

This includes $500,000 to expand behavioral health services, $500,000 to support extended evening and weekend hours, and $500,000 to support justice-involved individuals transitioning back into the community. Additionally, $200,000 was retained to support early childhood development screening and improve pediatric care outcomes.

Together, these funds strengthen Grace Health's resources and provide the ability to deliver comprehensive, accessible care while improving health outcomes and supporting long-term community well-being.

10 | Grace Health

GRANTS GRANTS OVERVIEW

$5,089,052 (FQHC Service Area Competition) Beginning June 2026, a four-year annual grant will help fund staff salaries to support integrated services across all service counties. This grant will support expanded behavioral health services, including substance use disorder treatment and Medication Assisted Treatment (MAT), as well as extended evening and weekend clinic hours to improve access, preventive care, and health outcomes for underserved patients. Funding will also support pediatric and behavioral health staff to increase early childhood developmental screenings and identify needs earlier.

$500,000 (HRSA) Supports 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. Through our quality improvement efforts, more than 100-justice involved individuals have been supported by the project team.

$428,000 (Kentucky Opioid Response Effort, KORE) Supports Outreach and Enrollment staff in helping community members access healthcare through health insurance enrollment.

$230,000 (Kentucky Department of Public Health) Expanding HIV testing, education, and referral to treatment services.

$56,470 (KORE) Funds a Peer Support Specialist for patients in substance use treatment and provides assistance addressing care barriers, especially for MAT participants.

2025 Annual Report | 11

Grace Health is dedicated to meeting the healthcare needs of our communities by providing a comprehensive range of services. Our commitment extends to individuals of all ages and every stage of life.

PRIMARY CARE

Providing consistent, comprehensive healthcare for all life stages, including specialized services for nursing home residents.

PHARMACY

Dispensing accessible, comprehensive, and informative pharmaceutical care for the entire community.

PEDIATRIC CARE

Dedicated to helping families maintain their children's health and well-being through convenient, local services.

X-RAYS & LABS

Ensuring essential diagnostic services such as X-rays, blood work, and other tests.

DENTAL CARE

Providing comprehensive dental services for all ages, including preventive and restorative care, teeth whitening, and athletic mouthguards.

OUTREACH

WOMEN’S CARE

Engaging with the community through local events to offer essential resources and support.

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.

SCHOOL-BASED HEALTH SERVICES

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

PATIENT ENCOUNTERS OVERVIEW

TOTAL ENCOUNTERS 2020

2021

2022

199,017 2023

2024

2025

2020-2025 TOTAL ENCOUNTERS

20000

15000

10000

5000

0

Jan

Feb

Mar

Apr

May

43,703 Total Patients UNIQUE ENCOUNTERS 970 substance use disorder

Jun

Jul

Aug

Oct

Nov

Dec

9,417 New Patients SCHOOL-BASED HEALTH ENCOUNTERS 23,375 total encounters

1,010 deliveries

3,553 medical

1,113 veterans

17,361 nurse

10,567 telehealth

2,036 dental

11,220 prenatal

Sep

425 behavioral health

2025 Annual Report | 13

PATIENT SUPPORT SERVICES 632,589

Outbound Calls

682,369

Inbound Calls

Patient Support Services (PSS) play a vital role in enhancing care coordination through efficient communication, scheduling, referrals, and medical record management. The department supports improved access and affordability by managing diagnostic orders, tracking laboratory services, and ensuring compliance with sliding fee schedule requirements.

In 2025, PSS managed 682,369 inbound calls and 632,589 outbound calls. Of all inbound calls, 469,733 were routed through PSS queues, accounting for 68.8% of total inbound call volume, with Scheduling, Patient Navigators, and Triage serving as the highest-volume queues.

The team also processed 34,848 diagnostic orders and 27,952 referrals, helping ensure patients received timely access to needed services while supporting organizational quality, compliance, and continuity of care initiatives.

14 | Grace Health

34,848

Diagnostic Orders

27,952

Referrals

$2,523,009

Total Sliding Fee Discounts

ASSISTANCE SLIDING FEE DISCOUNT (SFD) PROGRAM As a Federally Qualified Health Center (FQHC), Grace Health is committed to serving all patients regardless of insurance or financial status. Through the Sliding Fee Discount (SFD) Program, eligible patients receive

$1,285,681

SFD - Medical

reduced costs for medical, dental, and pharmacy services based on household size and gross income, helping improve access to affordable healthcare.

In 2025, the SFD Program provided more than $2.5 million in healthcare savings for patients. This included $1,285,681.49 in medical discounts, $132,778.27 in dental discounts, and $1,104,548.42 in pharmacy savings, helping reduce financial barriers and improve

$132,779

SFD - Dental

access to essential healthcare services and medications.

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

$1,104,549

through the Hardship Application.

Last year, these

programs provided $9,945 in savings to patients.

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

2025 Annual Report | 15

340B PHARMACY PROGRAM 340B Pharmacy Savings

$2,830,262

Patient Savings

$1,104,548

Prescriptions Filled

340B 140,505 Non-340B

93,571

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 entity-owned pharmacies, contract pharmacy partnerships, and clinical pharmacy initiatives that improve health outcomes and overall well-being.

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.

16 | Grace Health

HOW DOES 340B WORK? Federally Qualified Health Centers (FQHCs), like Grace Health, are held to strict standards of transparency and oversight. In addition to specific reporting requirements to both state and federal entities, FQHCs undergo regular internal and external audits at the federal and manufacturer levels. These audits help ensure that funds are spent in alignment with the program’s purpose by checking for and preventing diversion and duplicate discounts.

The 340B program's intent is to stretch scarce federal resources, enabling health centers to reach more eligible patients and provide more comprehensive services. Significantly, the program operates at no cost to taxpayers, as savings are provided directly through pharmaceutical manufacturers.

Grace Health fulfills the program’s mission by investing these savings to support expanded services, including School-Based Health, Behavioral Health, Dental, Clinical Pharmacy, and community outreach that goes beyond traditional primary care.

Utilizing both entity-owned and contract pharmacy models, Grace Health can extend these services to underserved, at-risk populations, improving community well-being through high-quality, compassionate healthcare for the whole person.

PHARMACY 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 atrisk patients. In addition, Grace Health offers Medication Therapy Management (MTM) and participates in collaborative care initiatives to optimize pharmaceutical care throughout Southeastern Kentucky.

In August 2025, Grace Health expanded its commitment to accessible, community-based care through the acquisition of Creech and Gibbs Pharmacy. This transition strengthened Grace Health’s ability to provide integrated healthcare services by enhancing access to affordable medications, personalized pharmacy support, and coordinated patient care. Grace Health was proud to welcome the Creech and Gibbs Pharmacy employees to the organization, whose experience and dedication continue to strengthen the care provided to patients across the region.

Unique Prescriptions Filled

10,212 SFD Program 8,200 Employee

Total Prescriptions Filled

252,488

Retail Pharmacy Revenue

$20,949,736 2025 Annual Report | 17

OVERVIEW

456

105

Total FTE Employees

Total Providers

27

Doctors (MD/DO, DMD)

Across Bell, Clay,

38

Advanced Practice Providers (APPs) (PA/APRN)

Knox, Laurel, Leslie,

20

Pharmacists (PharmD/RPh)

and Whitley County

20

Behavioral Health (PMHNP, LCSW, LPCC)

Percent of employees per county:

3.6%

6.1%

34.2%

Bell

Clay

Knox

7.7%

4.1%

44.3%

Laurel

Leslie

Whitley

BEST PLACES TO WORK IN KENTUCKY Grace Health is honored to be recognized as one of the Best Places to Work in Kentucky for the third consecutive year by the Kentucky Chamber of Commerce. We were proud to be the first Federally Qualified Health Center (FQHC) in Kentucky to receive this recognition. This honor continues to highlight our commitment to creating an exceptional workplace culture and employee experience.

This award is significant because it’s based on direct feedback from our employees, whose insight and honesty placed us among the state’s top employers. Their dedication helps foster the supportive and purpose-driven environment that defines Grace Health.

We were also thrilled to celebrate alongside our partners at the Kentucky Primary Care Association and a fellow community health center in Western Kentucky.

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.

2025 Annual Report | 19

GRACE UNIVERSITY

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.

Grace U offers Certified Clinical Medical Assistant (CCMA) and Certified Medical Administrative Assistant (CMAA) certification courses through the National Healthcareer Association (NHA). Grace U also offers two dental assisting certification programs, the Certified Dental Assistant (CDA) certification and the National Entry Level Dental Assistant (NELDA) certification through Dental Assisting National Board (DANB).

79

100 80 60 40 20 0 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 20 25

Certifications

To reduce financial barriers, Grace Health fully covers the cost of these programs, compensates employees for their class time, and provides financial incentives, including bonuses and pay increases, upon the attainment of the certification.

Reporting Year

20 |Grace Health

In 2025, students across Grace University’s four programs earned 79 certifications, bringing the lifetime total to 502 certifications achieved. The programs maintained an exceptional 98.5% pass rate for the year and a remarkable 99.5% lifetime pass rate. When compared to national averages — 81.73% for CCMA, 63.24% for CMAA, 85% for CDA, and 70% for NELDA — these results highlight the excellence, dedication, and impact of Grace University’s educational programs.

Grace U’s certifications achieved in 2025

Total Grace U’s certifications achieved

502

DEVELOPMENT The organization remains committed to continuous learning and professional growth. The Human Resources (HR) department partners with Somerset Community College (SCC) to provide workforce development sessions for current and future Grace Health leaders. A total of 200 participants benefited from these educational sessions, further supporting Grace Health’s culture of growth, collaboration, and excellence.

Training topics in 2025 included: Triage Training Goal Setting and Getting Things Done Communication Strategies Microsoft Teams Training Developing New Managers/Leaders Coaching and Mentoring Employee Motivation Teamwork and Team Building Mastering Excel

200

Participants across nine events

Training sessions, work-shops, and seminars offered to current & future leaders

9

35 30 25

Grace Health also provides additional training and professional development opportunities to help employees expand their skills and advance their careers. Employees are offered Basic Life Support (BLS) certification courses, a five-week Excel training program, and position-tiered development programs that provide advance education and role-specific knowledge. These programs are tailored to tenured staff and incorporate departmental and locationbased cross-training opportunities designed to strengthen collaboration, expand operational knowledge, and support professional growth across the organization.

20 15 10 5 G oa Tria l ge Co s & Tr G m ai e m un ttin ning gI ic at tD io on n M St e S ra D Te ev te a g el m i o s T es Co ping ra in ac N in ew hi g ng L e an a de E d M rs Te mpl en oy am t ee or w in or M g k o t & i v Te at am io Bu n M ild as te i rin ng gE xc el

0

Grace Health also encourages and supports providers participating in Continuing Medical Education (CME), further investing in workforce development and high-quality patient care. In 2025, the organization also welcomed 154 students participating in clinical rotations and shadowing experiences, helping support the education and development of future healthcare professionals.

2025 Annual Report | 21

BENEFITS 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 perpay-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.

22 |Grace Health

EMPLOYEE BENEFITS Full-time employees, those working 30 or more hours per week, are eligible for Grace Health’s comprehensive employee benefits package. Changes can be made during open enrollment or after qualifying life events, with updates effective at the start of the plan year.

EMPLOYEE ASSISTANCE FUND The organization remains committed to supporting team members during difficult times through the Employee Assistance Fund, financed by voluntary employee contributions. The fund provides financial support for hardships such as health complications, natural disasters, and other emergency situations, helping ensure employee stability and well-being.

In 2025, 15 employees received vital support from the fund totaling nearly $24,250. Much of this assistance was directed toward employees impacted by the devastating tornadoes in May of 2025, helping provide relief and stability during a difficult time. Grace Health is proud of the resilience, compassion, and solidarity this fund represents and remains committed to supporting employees through this meaningful program. A sincere thank you goes to every employee who contributes to the fund, as well as to the Kentucky Primary Care Association (KPCA) for its generous support of our team members affected by the tornadoes. Together, these efforts provided critical assistance when it was needed most.

“We are very thankful for your thoughtfulness and generosity during a devastating time.

Your support helped bring hope and restoration to our family.”

Grace Health Employee

APPRECIATION Grace Health remains deeply committed to recognizing and appreciating the employees who make its mission possible each day. Throughout 2025, the organization invested in meaningful opportunities to celebrate staff members and their families, fostering a culture of gratitude, connection, and support. Employees enjoyed a variety of appreciation events and gifts throughout the year, including a family day at the waterpark, employee shirts, Christmas bundles, on-site massages, food truck events, and the memorable “Grace Gatsby” celebration.

These events and initiatives reflect Grace Health’s belief that caring for employees is just as important as caring for patients. By creating opportunities for fellowship, relaxation, and recognition, Grace Health continues to strengthen employee morale, encourage teamwork, and show appreciation for the dedication and compassion demonstrated by staff across the organization.

Another meaningful way Grace Health recognizes employees is through the Golden Grace Award, which honors individuals who exemplify the organization’s values through compassion, humility, servant leadership, and dedication to others. In 2025, Megan Murray, CMAA, CCMA, Patient Access Rep Pediatric Lead, was selected for this distinguished recognition. Through her positivity, kindness, and commitment to both patients and coworkers, Megan consistently reflects the heart of Grace Health. In addition to her role within the organization, she also helps educate employees by teaching Grace University’s CMAA course. Her welcoming presence in the pediatric department at the Medical Campus and her dedication to serving others make her a true example of Grace Health’s mission in action.

2025 Annual Report | 23

FINANCIAL PERFORMANCE FINANCIAL OVERVIEW

2025 Revenue Medical Patient Services $ 39,443,643 20,949,736 Retail Pharmacy Grant 10,281,750 5,421,576 Other 340B Pharmacy 2,808,082 Dental Patient Services 2,712,810 Total Revenue $ 81,617,597 Grace Health reported $81.6 million in total revenue without donor restrictions. The largest source of revenue was Medical Patient Services (48%), followed by Retail Pharmacy (26%) and Grants (13%). Additional contributions came from 340B Pharmacy (3%), Dental Patient Services (3%), and other sources (7%), reflecting a diverse and balanced revenue stream.

Total expenses for the year were $79.5 million, with the majority allocated to Salaries and Benefits (55%) and Supplies (27%), demonstrating a strong investment in both personnel and patient care resources. Remaining expenses included facility costs, professional services, and operational support.

REVENUE

24 |Grace Health

48% 26% 13% 7% 3% 3% 100%

EXPENSES

55%

2025 Expenses Salaries and Benefits Supplies Office Expenses

$

44,634,765 21,081,894 1,020,585 1,208,343 3,579,034 4,075,852 1,811,179

55% 27% 1% 2% 5% 5% 2%

Contract Services 1,199,076 Interest and Bank Charges 856,911 Total Expenses $ 79,467,639

2% 1% 100%

Prof Fees and Services Facility Other Depr and Amort

Total Net Assets

$

Profit/(Loss)

%

2,149,958

2.6%

2025 Annual Report | 25

Quality yields continuous performance improvement and financial sustainability.

By leveraging performance improvement initiatives, ongoing staff education, rigorous compliance monitoring, and data-driven insights, Grace Health continues to improve clinical quality, promote patient safety, enhance the patient experience, and maintain strong financial stewardship. In 2025, Grace Health remained dedicated to advancing quality across all areas of care while ensuring patients receive the highest standard of care throughout the communities it serves.

COMMUNITY HEALTH QUALITY RECOGNITION

Grace Health continues to demonstrate its commitment to quality improvement through recognition from the Health Resources and Services Administration (HRSA) Community Health Quality Recognition (CHQR) program, which honors health centers for achievements in access, quality, health outcomes, and health information technology. Based on 2024 data, Grace Health earned numerous CHQR awards in 2025, reflecting the organization’s ongoing dedication to delivering high-quality, patient-centered care.

Advancing HIT for Quality is awarded to health centers that demonstrate excellence in the use of health information technology. To earn this recognition, organizations must meet key criteria including submitting UDS data on patient sociodemographic characteristics, offering telehealth services, electronically exchanging clinical information with healthcare providers, engaging patients through health IT tools, and collecting data on patient social risk factors.

National Quality Leader (NQL) – Diabetes Health recognizes health centers that achieve national benchmark performance in diabetes-related Clinical Quality Measures (CQMs). To earn this recognition, organizations must meet target performance in at least two of three measures: Adult Body Mass Index (BMI) Screening and Follow-Up Plan with a benchmark of 86.0%, Weight Assessment and Counseling for Nutrition and Physical Activity for Children and Adolescents with a benchmark of 85.0%, and Diabetes: Hemoglobin A1c (HbA1c) Poor Control (>9.0%) with a target of 11.6% or lower, based on the Healthy People 2030 benchmark for uncontrolled diabetes.

Preventive Health recognizes health centers that meet national benchmarks in preventive care and early intervention services. To earn this recognition, organizations must meet or exceed targets in at least five of ten Clinical Quality Measures (CQMs), including childhood screenings, nutrition counseling, depression and tobacco screenings, BMI monitoring, and breast, cervical, and colorectal cancer screenings.

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 11-20%), and 3rd tier is Bronze (top 21-30%).

Grace Health achieved Gold, a notable improvement over the Silver ranking from the previous reporting period.

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AWARDS In 2025, Grace Health received multiple recognitions from the American Heart Association (AHA) for excellence in chronic disease prevention and management. The organization earned Gold level recognition through the Target: Type 2 Diabetes initiative for improving awareness, detection, and management of type 2 diabetes using evidence-based patient education and tools.

Grace Health also achieved Gold+ recognition through the Target: BP initiative for excellence in hypertension management and maintaining blood pressure control in at least 70% of its adult patient population. Additionally, the organization was recognized through Check.

Change. Control. Cholesterol for effectively managing high cholesterol and appropriately treating at-risk ASCVD patients with statin therapy.

Above: Women’s Care receives AMA/AHA recognition

28 |Grace Health

RECOGNITION 2025 AHA/AMA AWARDS GOLD PLUS RECOGNITION FOR: TYPE 2 DIABETES MANAGEMENT, TARGET B/P, AND CHECK/CHANGE/CONTROL CHOLESTEROL HYDEN CLINIC LEVI CENTER CLINIC MANCHESTER CLINIC MOUNTAIN VIEW CLINIC PINEVILLE CLINIC UNIVERSITY OF THE CUMBERLANDS CLINIC

GOLD PLUS RECOGNITION FOR:

TARGET B/P AND CHECK/CHANGE/CONTROL CHOLESTEROL MEDICAL CAMPUS

GOLD PLUS RECOGNITION FOR: TARGET B/P WOMEN’S CARE

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Total Community Outreach Encounters

2,674

649 Total Community Outreach Events

PER COUNTY

Total People Enrolled/ Re-Enrolled In Insurance

104 Bell 75 Clay 149 Knox 75 Laurel 48 Leslie 190 Whitley

HEALTHY PEOPLE, HEALTHY COMMUNITIES

153,424

OUTREACH Grace Health’s Community Programs aim to improve the lives of people across Southeastern Kentucky. Grace Health recognizes that health encompasses not only physical wellbeing 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.

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.

112,040

Total CHW Encounters

The tangible results of this dedicated effort were clear in 2025. Grace Health's Outreach and Enrollment team actively engaged with the community at 649 events, resulting in 153,424 meaningful encounters that helped connect individuals with essential programs and healthcare options.

Outreach Encounters Per Month

Total CHW Events

Bell 24 Clay 40 Knox 24 35 Laurel 2 Leslie 86 Whitley

Ja n Fe M b ar ch Ap r M ay Ju ne Ju ly Au g Se pt O ct N ov D ec

7000 6000 5000 4000 3000 2000 1000 0

219

PER COUNTY

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

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IMPACT ECONOMIC

Grace Health plays a vital role in delivering healthcare services while also contributing to the economic growth and stability of the region. Employing 585 individuals throughout 2025, the organization is one of the area’s major employers, providing meaningful careers and professional opportunities across a wide range of disciplines.

Community Economic Impact by County

In 2025, Grace Health invested $36,184,144.76 in employee salaries, along with an additional $8,450,620.24 in fringe benefits (calculated at 23.35%), representing a total workforce investment of $44,634,765. These investments not only support the livelihoods of employees and their families but also strengthen the local economy and promote long-term community resilience. Through continued growth and workforce development, Grace Health remains committed to improving both the health and economic well-being of the communities it serves.

County / Program

Total Employees

Salaries

21

Bell Pineville Clinic & SBH

Clay Manchester Clinic

Knox Medical Campus

Laurel Levi Center & Mountain View Clinic

Leslie Hyden Clinic & SBH

Whitley Corporate, Nursing Home, PSS, SBH, UC Clinic, & Women’s Care

Total

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Fringe Benefits

Total Investment

1,179,402.15

275,443.28

$ 1,454,845.43

36

2,137,266.59

499,147.58

2,636,414.17

200

11,758,334.71

2,746,098.38

14,504,433.09

45

3,417,521.11

798,144.42

4,215,665.53

24

1,470,975.90

343,538.83

1,814,514.73

259

16,220,644.30

3,788,247.75

20,008,892.05

585

36,184,144.76

8,450,620.24

$ 44,634,765.00

(23.35%)

PROJECTS EPIC WILLOW Transitioned to the pharmacy system, Epic Willow, in December of 2025. The transition modernized pharmacy operations and increased the availability of patient information through a more streamlined, user-friendly portal, helping improve care coordination, efficiency, and the overall patient experience.

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.

Grace Health continues to grow and evolve to meet the changing needs of the communities it serves. Through ongoing investments in facilities, technology, programs, and workforce development, the organization remains committed to expanding access to high-quality, patient-centered care. Looking ahead, Grace Health is excited for the opportunities and projects on the horizon that will further strengthen services, enhance patient experiences, and support healthier communities across the region.

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STRATEGIC PLAN Pillars to Success

Purpose WE HEAL PEOPLE

Vision HEALTHY PEOPLE, HEALTHY COMMUNITIES

Strategic Goals

1

2

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

Expand and enhance clinic programs and services

Regional primary health care provider of choice

Core Values EXCELLING

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

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

3

4

Advancement of Community Board of Directors

Strengthen and transform financial position and sustainability

Needs Assessment SERVICE AREA Counties: Bell, Clay, Knox, Laurel, Leslie, & Whitley Total Target Population: 184,608

ECONOMIC

Poverty rate: 36% is double the state and national averages 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

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

HEALTH DISPARITIES

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

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

REACHING

HEALING

Targets (3-5 years)

52.5% Working-Age Adults (18-24 yrs) 22.6% School-Age Children 17.8% are 65+ years old

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

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

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2025 ANNUAL SUMMARY 40% Patients Covered by Medicaid

total providers: 105

43,703 Total Patients 4,084

medical

dental

Patient Encounters

199,017

3,476

behavioral

161,975 medical

patients experiencing homelessness

168

migrant/seasonal workers

1,113

veterans

2,346

school-based health (SBH)

dental

6,199

Pharmacy Savings: $2,830,262

$1,104,548

340B Program

SFD Patient Savings

Patient Insurance Source

Total Patients 50,000

school-based

11,220

prenatal

10,567

1,010

deliveries clinical pharmacy

970

153,424

substance use disorder

30,000

Private

20,000 10,000

Medicaid 0% 10% 20% 30% 40%

0

Sources of Revenue

343

telehealth

40,000

Medicare

2,177 medical 1,720 behavioral 2,302 dental

behavioral

prescriptions filled

Uninsured

Encounters Breakdown

23,164

252,488 Pharmacy

Special Populations 69

12,651

20 14 20 16 20 18 20 20 20 22 20 24

40,960

total FTEs: 456

outreach encounters

52% - patients 38% - pharmacy w/ 340b 7% - grants 3% - other

Serving Bell, Clay, Knox, Laurel, Leslie, and Whitley counties

8 CLINIC LOCATIONS 34 SBH LOCATIONS

SUPPORTS 8 NURSING HOMES

1019 Cumberland Falls Hwy, Suite B201, Corbin, KY 40701 March 2026

4 PHARMACY LOCATIONS www.gracehealthky.org

MISSION

The mission of Grace Health 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.

VISION

Healthy People, Healthy Communities

PURPOSE We heal people.

CONTACT INFORMATION

1019 Cumberland Falls Highway, Suite B201, Corbin, KY 40701 888-883-9005 | www.gracehealthyky.org