LSS Annual Report 2015

Lutheran Senior Services serves a diverse population, living in diverse situations, experiencing diverse needs. Responding to those needs requires a multitude of hands working in a multitude of specialized fields. It is for this reason that LSS offers an array of interconnecting programs — a complete continuum of services designed to help older adults live life to the fullest whatever their belief tradition, economic level, or need may be. We stand poised for expanding and continuing this legacy of serving for generations to come.

LUTHERAN SENIOR SERVICES

SENIOR LIVING COMMUNITIES

AFFORDABLE HOUSING

12120 Conway Rd.

Centennial Plaza

St. Louis, MO 63112

Breeze Park

St. Louis, MO 63141

Apartments

314.361.4111

600 Breeze Park Dr.

314.251.6600

4115 McPherson Ave.

ST. LOUIS AREA

St. Charles, MO 63304

St. Louis, MO 63108

Richmond Terrace

314.533.0550

Hylton Point II Apartments

636.939.5223

1633 Laclede Station Rd.

Laclede Groves

St. Louis, MO 63117

Dunn Road Manor

St. Louis, MO 63112

723 S. Laclede Station Rd.

314.646.8000

3399 Dunn Rd.

314.361.1100

Florissant, MO 63033

Madison Manor

St. Louis, MO 63119 314.968.5570

CENTRAL MISSOURI

314.830.2774

Heisinger Bluffs &

Mason Pointe

St. Joseph’s Bluffs

13190 S. Outer Forty Rd.

1002 W. Main St.

Chesterfield, MO 63017

Jefferson City, MO 65109

314.434.3330

573.636.6288

Meramec Bluffs

Lenoir Woods

1 Meramec Bluffs Dr.

3710 Lenoir St.

Ballwin, MO 63021

Columbia, MO 65201

636.861.0600

573.876.5800

933 Belt Ave.

207 N. Madison Ave.

Halls Ferry Manor

Lebanon, MO 65536

8725 Halls Ferry Rd.

417.588.9633

St. Louis, MO 63147

Rose Hill House I & II

314.388.1944

225 W. Rose Hill Ave.

Hilltop Manor

Kirkwood, MO 63122

11 Hilltop Village Center Dr.

314.966.0747

Eureka, MO 63025

The Village at

636.938.3387

Mackenzie Place

Hylton Point

8520 Mackenzie Rd.

central illinois

Apartments

Affton, MO 63125

Glen Carbon, IL 62034

Concordia Village

5500 Maple Ave.

314.884.7900

618.288.3700

4101 W. Iles Ave.

Meridian Village 27 Auerbach Place

REACH West County

Springfield, IL 62711

HOME & COMMUNITY BASED SERVICES Home Health & Private Duty 314.963.3430 Hospice 314.446.2539 Outreach Services

E L E VAT I N G M I S S I O N

Outreach Social Services | 314.446.2475

|

2015 ANNUAL REPORT

Good Neighbor Program | 314.446.2471 1150 Hanley Industrial Ct. St. Louis, MO 63144 314.968.9313

OLDER ADULTS LIVING LIFE TO THE FULLEST | 1

ELEVATING MISSION | 2015 ANNUAL REPORT

TABLE OF

CONTENTS A Message from the Board of Directors

2

A Message from the President

3

ELEVATING MISSION | Depth & Reach

4

Where We Impact

5

ELEVATING MISSION | Future Needs

6

Post-Acute Strategy

7

ELEVATING MISSION | Successful Aging

8

Masterpiece Living

9

ELEVATING MISSION | Excellence & Outcomes

10

Center for Clinical Excellence

11

ELEVATING MISSION | Health & Wellness

12

Project Wellness

13

ELEVATING MISSION | Progress & Renovation

14

2015 Projects

15

ELEVATING MISSION | Community Partnerships

16

APA and Senior Connections

17

ELEVATING MISSION | Financial Stability

18

Financial Reports

19

ELEVATING MISSION | Benevolent Care

20

Golf Tournament

21

ELEVATING MISSION | Servant Hearts

22

Senior Leadership and Board of Directors

23

LUTHERAN SENIOR SERVICES | 1

ELEVATING MISSION | 2015 ANNUAL REPORT

A MESSAGE FROM

THE BOARD OF DIRECTORS As pastor of a thriving congregation, I see the needs of my members evolve as the world changes around us. As chair of the Board of Directors for Lutheran Senior Services, I witness the same urgency for a mission that remains focused on meeting the ever-changing needs of older adults. We can stay the same as we’ve always been and risk losing the opportunity to broaden our reach, or we can flourish and expand into new areas of serving.

Balancing what’s necessary with what’s possible is an intriguing part of ministry. Lutheran Senior Services is a ministry to older adults carried out on behalf of 105 Lutheran congregations. It is from the membership of these congregations that our Board of Directors is elected. And our board takes this calling to serve the older adults in our own congregations, as well as others in the communities at large, very seriously.

Older Adults Living Life to the Fullest is the Christian mission of Lutheran Senior Services. It’s the same mission that has driven this ministry for years. Elevating this mission beyond mere words is the challenge that continues to drive us forward. In 1 Peter 4:10 we read, “Each one should use whatever gift he has received to serve others, faithfully administering God’s grace in its various forms.” Continuing to do what we already do well is essential. However, implementing changes that position us for the future is equally important so that God’s grace can be administered for years to come.

As you read how the mission and ministry of Lutheran Senior Services unfolded this past year, please join me in prayer for guidance and mission-driven leadership in the days, months, and years to come.

Rev. William T. Simmons Chairperson LSS Board of Directors

2 | LUTHERAN SENIOR SERVICES

A MESSAGE FROM

THE PRESIDENT Every year as I survey the annual report, I am struck by the complexity of an organization our size. To serve more than 11,000 older adults each year in ministries that span the full spectrum of income levels and needs, requires a great deal of passion and purpose — something I see on a daily basis as our dedicated staff of over 3,000 employees seek to live out our mission of Older Adults Living Life to the Fullest.

Just like every not-for-profit organization, we have a choice as to how much importance we place upon our mission. Some might call us a faith-based organization. That’s true; but Lutheran Senior Services is so much more than faith-based. We are faith-inspired and mission driven. Our mission provides focus and clarity for everything we do, from the daily encounters that touch lives to the strategic decisions that change lives.

In today’s world, change is necessary in order to remain viable, not only for today but for the future. In the pages that follow you will see how elevating our mission to more than a mere statement has driven us toward changes that increase the depth and reach of our ministry.

I hope it becomes clear that Lutheran Senior Services is not standing still; we are moving forward with energy, innovation, deliberation, and focus.

Such meaningful ministry would not be possible without a strong spirit of partnership. I extend profound gratitude to our residents, staff, volunteers, donors, board of directors, and committees for their generous trust and support. Together we will continue elevating our mission, not to our glory, but to God’s glory as we strive to serve others as Christ would serve them.

Rev. John R. Kotovsky President & CEO Lutheran Senior Services

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ELEVATING MISSION | 2015 ANNUAL REPORT

SENIOR LIVING COMMUNITIES

1,582 Independent Living Spaces

21

499 Assisted Living Spaces 201 Memory Care Living Spaces

LOCATIONS • 10 SENIOR LIVING COMMUNITIES • 11 AFFORDABLE HOUSING

318 REACH Short Stay Rehabilitation Spaces 674 Long Term Care Spaces AFFORDABLE HOUSING

752 Total Living Spaces

402 PRIVATE DUTY CLIENTS

2,455 OUTREACH SOCIAL SERVICES CLIENTS

4 | LUTHERAN SENIOR SERVICES

292

1,203

HOSPICE PATIENTS

HOME HEALTH CLIENTS

219 LIVING SAFE TECHNOLOGIES CLIENTS

259

189

GOOD NEIGHBOR PROGRAM CLIENTS

VOLUNTEER MONEY MANAGEMENT CLIENTS

2,900+

18

SERVANT-HEARTED EMPLOYEES

CHAPLAINS SERVING RESIDENTS, CLIENTS, AND PATIENTS

$6.8M

4,026

EMPLOYEES SERVING FIVE YEARS OR LONGER

$84,048

BENEVOLENT CARE PROVIDED TO RESIDENTS AND CLIENTS

CHRIST CARE PROVIDED TO EMPLOYEES

11,000+

TOTAL LIVING SPACES

31.7%

2,744,000 MEALS SERVED

OLDER ADULTS SERVED

9

TH

LARGEST NOT-FOR-PROFIT MULTI-SITE SENIOR LIVING PROVIDER IN THE NATION

91% COMPOSITE RESIDENT SATISFACTION RATING

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ELEVATING MISSION | 2015 ANNUAL REPORT

FUTURE

NEEDS

A Conversation with Carla Baum, Regional Vice President, and Jake Bell, Chief Operating Officer LSS: Why are partnerships really important when it comes to post-acute care?

CARLA: We are one piece of the care continuum in healthcare. We are reliant on our hospital relationships, particularly with REACH Short Stay — our post-acute care rehabilitation. The hospitals have patients that require post-acute care after a surgery or hospitalization and are looking for qualified and capable partners. And we want them to look to LSS to fill that need.

LSS: If we’re talking about partnerships and REACH Short Stay at LSS, can you tell us a little bit about the partnership with Mercy Hospital in St. Louis and why they chose LSS when looking for a buyer of their skilled-care unit in 2015?

CARLA: I think there were a couple things that elevated us in their eyes. One is our faithinspired ministry — a close match. Then our approach for respecting the talent and tenure of the employees resonated with them. And lastly, the reputation of LSS as a successful, quality organization. They later told us that these three points made the conversation a very short one amongst their leadership.

JAKE: Strategically, that purchase not only aligned us with a major health care provider but also filled a void in our footprint within St. Louis County. There are three hospitals within that area and yet we didn’t have a LSS location nearby. Plus the team that we inherited from REACH West County was very strong clinically and has changed the game for us in the St. Louis area which I think will make us a better provider.

LSS: Looking into the future, are there other plans regarding elevating post-acute care?

JAKE: Part of our agreement with Mercy Hospital was that we needed to relocate from their campus, yet stay within a 5–10 mile radius. Then came the opportunity to purchase Mason Pointe (formerly known as the Cedars of Town & Country). It was perfect timing and we’ll be relocating REACH West County to Mason Pointe in the summer of 2016.

CARLA: Along with that, I think we’ve positioned ourselves for elevating our mission with bundled payments, as well as Quality Assurance Performance Improvement (see page 10).

There are a lot of things changing within the next few years and we’re ready to respond quickly when changes come.

6 | LUTHERAN SENIOR SERVICES

Ministry expansion is at the core of the LSS Post-Acute Strategy. As an industry leader, LSS is being intentional in establishing cross-vendor partnerships, piloting bundled payments, and providing higher acuity care in order to reduce hospital readmissions and meet increased demands.

LSS is uniquely positioned for seamless transitions in care because of the continuum we offer, which includes REACH Short Stay Rehabilitation, long term care, home health, and hospice.

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GLANCE Changing needs in North St. Louis County resulted in new initiatives for expanding ministry: Transfer of ownership of Hidden Lake to Aperion Care, based out of Skokie, IL Application for license in providing Medicaid Private Duty services Application for Low Income Housing Tax Credits for new construction of low-income housing adjacent to Dunn Road Manor

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ELEVATING MISSION | 2015 ANNUAL REPORT

SUCCESSFUL

AGING

A Conversation with Tammy Hempen, Executive Director of Breeze Park, and Lyle Kurth, Breeze Park Resident LSS: Lutheran Senior Services began a partnership with Masterpiece Living at some of our continuing care retirement communities to create opportunities for successful aging. Tammy, as an Executive Director at one of our communities who has rolled out Masterpiece Living this past year, what is it all about?

TAMMY: For us, Masterpiece Living is all about how both residents and staff can improve their lives through healthy choices, which can happen at any age or stage of life. As we’ve gotten started, it’s been a great partnership between everyone — encompassing our entire community. And many residents, like Lyle, have been a big part of its success.

LYLE: I was impressed with the four components of Masterpiece Living when Tammy first told me about it. These are the Spiritual, Intellectual, Physical, and Social components of daily life. We need to be aware of and active in each of these every day.

LSS: Tell us a little bit more about the four components and how they’re a part of daily life.

TAMMY: We try to incorporate each component into everything we do here. For example, it’s integrated into how we plan lifestyle enrichment activities. We’ll have speakers come in, some of them the residents themselves, to share their experience or expertise. That hits upon both the Intellectual and Social component.

LYLE: And Masterpiece Living has taught me how to grow in small steps each day. Some examples would be doing Sudoku every day for the Intellectual component. I’ve changed how I brush my teeth and tie my shoes, which speaks to the Physical. When I am on my walks, which is Physical, I find a place where I can sit and read aloud devotional material, which leads to prayer. This is both Intellectual and Spiritual. I usually find someone to talk to on my walks which covers the Social component.

TAMMY: Since beginning Masterpiece Living, we’ve seen an increase in resident participation and resident health. It’s a part of the conversations we’re having, the goals we set for our community, and the culture. We all love hearing the stories of change and growth from everyone, but it does take time and a lot of work. Everyone has been a part of getting us where we are today, and our community is better for it.

LYLE: There has been so much work behind the scenes here with the staff bringing Masterpiece Living to all of us. It’s a real joy to see their passion for what they do. And they do a lot!

8 | LUTHERAN SENIOR SERVICES

Eight of the LSS Senior Living Communities offer a full continuum of care. Introducing Masterpiece Living into these communities is an important step toward intentional life enrichment by nourishing a lifestyle shown by research to result in successful aging.

Specific emphasis is given to Spiritual, Intellectual, Physical, and Social enrichment. It is the goal of LSS to implement Masterpiece Living at each of our continuing care retirement communities. Learn more at www.mymasterpieceliving.com.

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GLANCE Innovations for enriching quality of life in addition to quality of care were given great emphasis in 2015: SAIDO LearningŠ, a program supporting memory-impaired older adults originally developed in Japan, was implemented at Meridian Village in Glen Carbon, IL, in 2014; Lenoir Woods in Columbia, MO, in 2015; and Lutheran Hillside Village in Peoria, IL, in 2016 HealthMEDXŽ was selected as vendor for a robust, multi-faceted Electronic Health Records system with phased roll-out planned for 2016

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ELEVATING MISSION | 2015 ANNUAL REPORT

EXCELLENCE &

OUTCOMES

A Conversation with Gary Anderson, Vice President of Clinical Effectiveness / CNO, and Valerie Cooper, Executive Director of Laclede Groves LSS: So what is QAPI? GARY: QAPI stands for Quality Assurance Performance Improvement and it’s a method that we use to evaluate our outcomes and measurements in order to raise the bar for the service and care we provide.

VALERIE: In healthcare, you can say you’re excellent, but you also have to be able to show through statistical measurements that you are. QAPI allows us to do that while making positive improvements that impact the lives of residents and guests.

LSS: So the QAPI huddle is where improvement happens?

VALERIE: Anyone can be a part of a QAPI huddle, regardless of title or department.

The QAPI huddle surrounds a QAPI board where we keep statistical information, which indicates how we’re doing. Then there are areas on the board where people can call out issues where they see a need for improvement. Anyone can put a suggestion on the board and together we go through a performance improvement process to work out a solution.

GARY: Exactly. It can be very easy to make decisions and operate in silos. QAPI allows input from all areas and helps everyone understand the process of making decisions and how their decisions have a profound effect on how LSS operates. It broadens and builds our teams.

VALERIE: We talk about things that seem very minor but are actually huge when it comes to care and services. From making sure we have the right kind of sandwiches residents want, to making sure that our laundry system is working so that our residents aren’t losing clothes. It can be big or it can be small, but in the end every improvement worked out impacts the lives of those we serve in a positive way.

LSS: What’s been the reaction from staff members and residents?

VALERIE: We’ve had a great response! With QAPI we’ve seen increased participation and I think that stems from the fact that everyone has a voice. I’m really proud of how everyone comes together to tackle issues and make improvement suggestions.

GARY: We’ve had great ideas come out of QAPI huddles with everyone taking ownership of improvement — that’s exciting for everyone involved.

10 | LUTHERAN SENIOR SERVICES

LSS established the Center for Clinical Excellence which is dedicated to enhancing and measuring the quality of clinical services across the entire organization. A concentrated focus on evidence-based practices and continually improving outcomes is achieved through ongoing collaboration among clinical teams throughout the organization.

QAPI is a process unique to LSS that has been set in place in order to assure that care continuously meets or exceeds expectations.

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GLANCE Continued excellence in quality of care, quality of service, and quality of life was demonstrated through: An overall average of 4.4 in the monthly 5-star rating put out by the Centers for Medicare and Medicaid Services An overall average 91% resident satisfaction score throughout LSS New in 2016, the inaugural LSS Post-Acute Care Symposium will feature cutting-edge issues facing clinicians who work in the post-acute care continuum

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ELEVATING MISSION | 2015 ANNUAL REPORT

HEALTH &

WELLNESS

A Conversation with Becky Joseph, Parish Nurse, and Louise Headrick, Hilltop Manor Affordable Housing Resident LSS: Becky, you’re a parish nurse who works within our Affordable Housing locations to help residents take control of their health with a telehealth kiosk.

How does that work?

BECKY: The telehealth kiosk is a computer wellness station where people can come to check their vital signs, including blood pressure, pulse, and weight. With an RN like me present, we can also check their blood sugar level, monitor medications, and make referrals for needed care.

LOUISE: I come in every day to use the kiosk and it has helped me tremendously. Not only am I more informed on my own health, but I can make small daily changes based off of the readings of the telehealth kiosk.

BECKY: Louise’s doctor has been really impressed with her written copy of the readings we’ve taken; and that means she gets even better care because her doctor has a bigger picture of her health.

LSS: Is this telehealth kiosk also being made available not only to LSS Affordable Housing residents but also to the surrounding community?

BECKY: That’s right. For me, it’s all about building relationships with people. I enjoy parish nursing because it allows me to integrate my health care skills with my faith, so to bring that to the community-at-large is very exciting. I’d like to see a steady influx of community members taking advantage of this free program so that we can continue to build these relationships.

LOUISE: I think if others can benefit like I have, that would be great. It’s done a lot for me.

Plus I’m hopeful that as I continue to work on my health eventually I can get to the point where I don’t need to use my walker as much.

BECKY: Louise’s health has improved greatly. I’ve seen so much progress in her health and in her overall knowledge of her health!

LSS: So Becky, outside of your goal of increasing participation in the community, what else do you want to see from the telehealth kiosk program within the next year?

BECKY: The telehealth kiosk is a part of a larger program we call Project Wellness, which also includes exercise classes, education, and spiritual care. I’m looking forward to offering two weekly exercise classes, as well as continuing our monthly Healthy Cooking Class.

We’re growing healthy together as a community in mind, body, and spirit!

12 | LUTHERAN SENIOR SERVICES

LSS Affordable Housing serves low and moderate-income seniors through options for rent-subsidized, rent-controlled, and market-rate apartments.

A program unique to LSS Affordable Housing is Project Wellness. This innovative program pairs the technology of telehealth kiosks with the personal touch of parish nurses to empower residents to take charge of their health. Project Wellness is also open and free to area older adults allowing at-risk seniors to take a proactive role in their physical, social, emotional, and spiritual well-being.

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GLANCE Some Quick Facts for Project Wellness include: Funded through a grant from Lutheran Foundation of St. Louis for $384,000 over three years 513 residents participated in 2015 which is 78% of the total resident population Offers monitoring of blood pressure, blood glucose, and other biometric readings, as well as education, and resources

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ELEVATING MISSION | 2015 ANNUAL REPORT

PROGRESS &

RENOVATION

A Conversation with Jacque Bogner, Executive Director of Concordia Village, and Donna Roetker, Concordia Village Resident LSS: Lutheran Senior Services is a not-for-profit. That means any surplus money doesn’t go into the pockets of shareholders, but is reinvested in our communities.

In 2015, many LSS communities saw renovations and expansions. Jacque, as an Executive Director, what does that reinvestment do for your community and other LSS communities?

JACQUE: For current and future residents it means that they can enjoy places and spaces that fit their needs. This is home and we want it to be a place where people are proud to say they live. Plus through reinvesting in our communities, we are extending our services to more seniors and providing a larger variety of services.

LSS: Which is needed.

JACQUE: Exactly. Everyone knows that we have a large generation population that has reached, or is close to reaching, retirement age. And Lutheran Senior Services is preparing for that with both renovating existing spaces and creating brand new ones. Wellness centers, fitness and art studios, pool spaces — all these are a part of investing back in our communities and I believe it’s a part of our mission.

LSS: Donna, you are a recent new resident to Lutheran Senior Services. How has your life changed since moving in?

DONNA: My life has changed tremendously since moving in. I had both a house and a condo and I knew it was time to downsize. Now I have a lovely apartment with a great view, friends surrounding me, and on top of that we have a new wellness center that I use every day. I had concerns and was nervous when making the decision to move, but everyone here is wonderful and it’s home. I haven’t missed my old place once.

JACQUE: Donna has a story similar to many others. One of the best parts of my job is that my team and I get to show them what life is like here.

DONNA: I really have nothing to worry about here. The building is so very beautiful but I have to say that it’s the people that really make it special. People like Jacque are what make this place a home.

14 | LUTHERAN SENIOR SERVICES

CONCORDIA VILLAGE

The ever-changing needs of a rapidly aging population leads change throughout LSS. Being responsible stewards means finding new ways of delivering value without sacrificing quality. Remaining viable in an increasingly competitive market calls for consistent evaluation of existing product and constant renewal through renovation and, at times, new construction.

Multiple projects remain in the works at all times with an eye toward meeting the needs of both today and tomorrow.

AT A

GLANCE 2015 Projects included:

LUTHERAN HILLSIDE VILLAGE

Concordia Village, Springfield, IL: Completed construction of new apartments and patio homes for independent living, as well as a Wellness Center featuring pool, art studio, game room, and clinic Lake Pointe, Lake Saint Louis, MO: Began pre-sales and continue developing phased construction of this new continuing care retirement community Lenoir Woods, Columbia, MO: Continued pre-sales of a new independent living wing and a master plan for construction of a new care center Lutheran Hillside Village, Peoria, IL: Began construction on a new care center and continue developing master plan for additional renovations

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ELEVATING MISSION | 2015 ANNUAL REPORT

COMMUNITY

PARTNERSHIPS

A Conversation with Jennifer Blome, APA Education Director, and Sandra Roeder Singer, Senior Connections Volunteer Coordinator LSS: We are sitting in a room with Sandra and Jennifer (and two dogs!) talking about the thousands of older adults who receive no visitors throughout the entire year.

What’s the connection?

SANDRA: Senior Connections is a program of Lutheran Senior Services that pairs volunteers with older adults in numerous senior living communities across the St. Louis area. They make once-a-week visits and offer relational companionship. Some of our volunteers, actually starting with Jennifer, were looking to bring their pets with them to the visits, and I knew we wanted to partner with the APA to build on that.

JENNIFER: At the APA we believe in bringing people and pets together and developing any kind of program that enhances the human-animal bond. What program does that better than Senior Connections? We certify the animals of volunteers so that they can join their visits as a relational volunteer for Senior Connections. And that’s how we all got here.

SANDRA: Since the partnership began, we’ve seen a 30% increase in the number of volunteers who are bringing their pets.

JENNIFER: When we visit memory care communities we find that some of the older adults will suddenly start talking, and just being able to pet the animal will help them bring back memories from their own life. They come alive and become animated.

LSS: It sounds like you both have a lot of fun — not only coordinating this program together, but you have a great passion for it. What’s your hope for the future of this partnership to grow and impact people?

JENNIFER: There is a tremendous need. There are still thousands of lonely, isolated seniors. We believe friendship sustains us through life and our hope is to grow this program until we can reach those thousands, not only in St. Louis but nationwide. Part of our job is getting the word out and we will never stop trying.

SANDRA: Senior Connections builds social connections and changes lives. The program’s creator wrote, “Simple actions of tender mercy will eventually tilt the earth on its axis and, slowly, the world will be changed.” That’s what the partnership between Senior Connections, the APA, and all our volunteers does in making a difference in the lives of older adults.

16 | LUTHERAN SENIOR SERVICES

The LSS Volunteer Program matches service-minded individuals and groups with the opportunity to dramatically impact the lives of others as they give of their time and talents. Prospective volunteers are placed according to location preference, skills, interests, and availability. Opportunities exist for short-term projects or events, as well as longterm volunteering on a regular schedule at each of the various LSS communities, Hidden Gems Resale, or throughout the community-at-large via Senior Connections.

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GLANCE Blessings were multiplied through wonderful LSS volunteers in countless ways: 2,718: Total one-time volunteers throughout LSS 2,074: Total ongoing volunteers throughout LSS 75,112: Total hours donated throughout LSS 1,726: Total visits through Senior Connections 3,077: Total hours of time given to seniors in 55 longterm care communities as Senior Connections relational volunteers spent time with residents who have no other visitors

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ELEVATING MISSION | 2015 ANNUAL REPORT

FINANCIAL

STABILITY

A Conversation with Paul Ogier, Chief Financial Officer, and Karl Dunajcik, Finance Committee Chair LSS: We probably have the two most qualified people to speak about the finances and stability of LSS today. Can you both talk about how the financial stability of LSS lends to its mission?

PAUL: Having a strong financial base allows us to take long-term views. Even though there might be short-term ups and downs in the marketplace, we don’t have to deviate from our ministry. We can always focus on doing the right thing for our residents, allowing us to remain close to the mission.

KARL: Another thing it allows us to do is to be opportunistic. With the financial base we have, we can make decisions and take advantage of opportunities that arise throughout the year. The affiliation of REACH West County in 2015 is a perfect example (see page 6). We wanted to position ourselves in the post-acute care market and were able to bring aboard a team that would allow us to do that.

LSS: How does that financial stability also lend itself to the future?

PAUL: It allows us to make investments to prepare for the future. As an example, we’re making a huge investment in a new electronic health records system that’s going to help us be better in our clinical operations with better information and better outcomes.

KARL: And those future plans are not only for LSS but also for our community-at-large.

A good example of that are the telehealth kiosks located at every LSS Affordable Housing location (see page 12). I think that’s going to be a huge part of our future in serving the needs of older adults, and another way that financial stability lends itself to the future of LSS and its mission.

PAUL: A lot of the outreach programs we do are not intended to make money. But we see the growing need and we see how the mission of LSS calls us to those needs, and it’s made possible by our financial strength.

LSS: What does it also say about the trust that people put in LSS? KARL: I think it says a lot — that we’ve earned their trust. There’s no significant financial transaction that takes place in this organization without the Finance Committee knowing about it and having properly vetted that transaction. That speaks to the whole notion of transparency and trust for what we do.

18 | LUTHERAN SENIOR SERVICES

2015 FINANCIAL REPORT Statement of Changes in Net Assets

Skilled Nursing 47.62% Independent Living 24.98% Assisted Living / Residential Care 20.89% Home Community Based Services 4.50% Other Programs 0.03% Affordable Housing 1.86% United Way Programs 0.13%

Operating Expenses

Operating Exp

Nursing 26.98% Administration 16.14% Depreciation 12.86% Dining Services 10.20% Employee Benefits 10.07% Interest 7.96% Maintenance 7.52% Housekeeping and Laundry 2.48% Home Community Based Services 2.59% Operating Rev Activities and Social Services 3.20% Operating Rev

Balance Sheet Assets Current Assets Endowment Funds Investments Limited as to Use Land Property Plant and Equipment Other Total Assets

Liabilities Current Liabilities Long-Term Debt Refundable Resident Fees Capital Advances from HUD Other Liabilities Accrued Pension Cost Net Assets Total Liabilities and Net Assets

Operating Rev

Operating Revenue

Operating Revenue (thousands) Resident Service Income $184,055 Amortization of Entrance Fees 3,972 Other 3,776 Benevolent Care (6,656) Interest Income 1,353 Net Assets Released 568 Total Operating Revenue 187,068 Operating Expenses 196,057 Operating Loss (8,989)

Other Income (Expense) Investment Income 7,003 Unrealized Gain (Loss) on Investments (10,084) Contributions 3,492 Other (2,071) Net Revenue Over Expense (10,649) Non-Operating Income (983) Increase (Decrease) in Unrestricted Net Assets $(11,632)

(thousands) $31,464 191,374 49,239 55,507 385,819 9,808 $723,211

$32,634 382,635 208,296 36,386 17,556 5,984 39,720 $723,211

Operating Rev

Operating Exp

Endowment Fund

Endowment Fund

Endowment Fund Benevolent Care 66.73% Clinical Pastoral Education 2.17% Concordia Village 1.38% Heisinger Hope Foundation 2.83% IMSE Endowment Fund 8.09% Lenoir Woods 5.03% Lutheran Hillside Village 13.78%

Operating Exp

Giving

Giving (5-Year Average)

Present Value of Operating Gift Annuites 72.5% Exp Present Value of Future Bequests 9.1% Contributions (<$1,000) 5.9% Major Gifts (>$1,000) 5.9% Other Giving 2.6% Special Events 2.2% Grants 1.7%

Giving

OLDER ADULTS LIVING LIFE TO THE FULLEST | 19

ELEVATING MISSION | 2015 ANNUAL REPORT

BENEVOLENT

CARE

A Conversation with Todd Goodrich, PARIC Vice President of Business Development, and Matt Claus, Thrivent Financial Advisor LSS: Benevolent Care is a unique program at LSS for those residents who have outlived their financial resources through no fault of their own. One of the ways in which LSS raises support is through the Tee Off with LSS for Benevolent Care Golf Tournament. Both of you are a part of making that tournament possible. Why is this issue close to you?

MATT: There are a lot of words that come to mind as I think about Benevolent Care: Hope. Dignity. Care. I consider this part of our duty to help those who are around us and especially those who have played a part in shaping our lives and our communities. It’s why I continue to participate.

TODD: I am involved personally because it’s another way for me to give back. There are a lot of worthwhile organizations but this is one where I’ve chosen to spend my time and help Lutheran Senior Services because I see the difference Benevolent Care makes.

LSS: You both do more than just participate in the tournament, you also are committee members, and you’ve encouraged your companies to be sponsors as well.

MATT: Thrivent’s mission is to work with people and organizations so they can have a good relationship with their money ultimately to then be generous with it. Thrivent is a sponsor every year because not only are we able to, but we see the value in partnering with others to make an even bigger difference than what we could do on our own.

TODD: At PARIC, one of our core values is enhancing our community and we’ve been blessed to be a profitable organization, which allows us to give back. And what is a greater cause than giving back to seniors who can’t afford to live life to the fullest?

LSS: Best part of the tournament?

MATT: Getting together as a community and knowing that we’re having a lot of fun, but being there to share in a common goal makes the day a great day. Plus Norwood Hills Country Club is a beautiful setting with well-kept grounds and service. The LSS Benevolent Care tournament really is one of the best tournaments in the area.

TODD: My favorite part is the fellowship and team building. We bring our fellow PARIC colleagues that day to play in the four-some. It’s a lot of fun, with team building and camaraderie that you get at an event like the Benevolent Care golf tournament.

20 | LUTHERAN SENIOR SERVICES

The largest LSS fundraiser of the year, the Benevolent Care Golf Tournament is truly a team effort. For the 275 golfers, 84 individual and corporate sponsors, and 80 volunteers, this one-day event becomes a unique opportunity for experiencing fun and fellowship while making an indelible difference in the lives of older adults who outlive their financial resources. As the need for Benevolent Care continues to increase, this tournament will continue scoring a success for others.

AT A

GLANCE LSS Benevolent Care supports residents who can no longer pay for the care they need as well as older adults throughout St. Louis whose needs exceed their resources: $6.8 million: Total Benevolent Care granted in 2015 $2.1 million: Raised for Benevolent Care in 2015 $6.9 million: Present value of future gifts $11.4 million: Projected need for 2016

OLDER ADULTS LIVING LIFE TO THE FULLEST | 21

ELEVATING MISSION | 2015 ANNUAL REPORT

SERVANT

HEARTS Elevating the mission of Lutheran Senior Services is made possible by the servant hearts of so many. We make a commitment to our residents to support them when resources fade as needs increase. See the fun events that occurred throughout LSS in 2015 to support Benevolent Care, ultimately leading to $6.8 million granted to those in need.

BREEZE PARK

LUTHERAN HILLSIDE VILLAGE

Summer Breeze Benevolent Brunch Unused Dining Dollars

Benevolent Care Brunch Extraordinaire SOS (Serving our Seniors) Events Unused Dining Dollars

CONCORDIA VILLAGE

Beanbag Tournament Chapel Offerings Unused Dining Dollars

MERAMEC BLUFFS

HEISINGER BLUFFS & ST. JOSEPH’S BLUFFS

MERIDIAN VILLAGE

Works of HeART Unused Dining Dollars

Evening at the Winery Unused Dining Dollars

Trivia Night Unused Dining Dollars Christmas Cookie Sale Homes Tour

RICHMOND TERRACE

Spaghetti Dinner A Toast for Seniors

LACLEDE GROVES

Mystery Dinner Memorial Pavers Gift Shop Proceeds Unused Dining Dollars

LSS WIDE

Golf Tournament Cabaret for a Cause Hidden Gems Proceeds

LENOIR WOODS

Wellness Walk Unused Dining Dollars

In addition to supporting residents who have outlived their financial resources, staff members and residents have also generously supported the following causes:

$32,820 was donated in support of those living with Alzheimer’s

22 | LUTHERAN SENIOR SERVICES

$84,048 was raised for Christ Care and used to help employees in times of financial crisis

$56,112 was raised for outreach into the community-at-large through United Way

OUR SENIOR LEADERSHIP

Rev. John R. Kotovsky

Jake Bell

Paul J. Ogier

Mark W. Schoedel

Dale E. Kreinkamp

PRESIDENT AND CEO

CHIEF OPERATIONS OFFICER

CHIEF FINANCIAL OFFICER

VICE PRESIDENT OF CONSTRUCTION & IT

VICE PRESIDENT OF HUMAN RESOURCES

Rev. William T. Simmons

Kathleen T. Mueller

Lee H. Bodendieck

CHAIRPERSON

VICE CHAIRPERSON

SECRETARY

Scott M. Hartwig

Diane R. Drollinger

Karl A. Dunajcik

John A. Komlos

Dr. F. Matthew Kuhlmann

OUR BOARD OF DIRECTORS The legacy of serving that frames the mission of Lutheran Senior Services dates back to 1858 when Rev. Johann Buenger founded the first Protestant hospital west of the Mississippi.

Our Christian mission lives on today as a ministry to older adults on behalf of 105 member Lutheran congregations in Missouri and Illinois.

Our Board of Directors is elected each year from these congregations and we are grateful for the servanthearted leadership they provide.

ASSISTANT SECRETARY

Jeff L. Dunn

Not pictured: Richard J. Bagy, Jr., Norma J. Barr, William E. Lucas, and Sherri C. Strand

William F. Roth

Rev. Dr. Scott K. Seidler

OLDER ADULTS LIVING LIFE TO THE FULLEST | 23

OUR CHRISTIAN MISSION Older Adults Living Life to the Fullest [Jesus said,] “I came that they may have life, and have it to the full.”

JOHN 10:10

Lutheran Senior Services serves a diverse population, living in diverse situations, experiencing diverse needs. Responding to those needs requires a multitude of hands working in a multitude of specialized fields. It is for this reason that LSS offers an array of interconnecting programs — a complete continuum of services designed to help older adults live life to the fullest whatever their belief tradition, economic level, or need may be. We stand poised for expanding and continuing this legacy of serving for generations to come.

SENIOR LIVING COMMUNITIES

AFFORDABLE HOUSING

ST. LOUIS AREA

CENTRAL MISSOURI

Breeze Park 600 Breeze Park Dr. St. Charles, MO 63304 636.939.5223

Heisinger Bluffs & St. Joseph’s Bluffs 1002 W. Main St. Jefferson City, MO 65109 573.636.6288

Centennial Plaza Apartments 4115 McPherson Ave. St. Louis, MO 63108 314.533.0550

Laclede Groves 723 S. Laclede Station Rd. St. Louis, MO 63119 314.968.5570 Mason Pointe 13190 S. Outer Forty Rd. Chesterfield, MO 63017 314.434.3330 Meramec Bluffs 1 Meramec Bluffs Dr. Ballwin, MO 63021 636.861.0600 Meridian Village 27 Auerbach Place Glen Carbon, IL 62034 618.288.3700

Lenoir Woods 3710 Lenoir St. Columbia, MO 65201 573.876.5800 central illinois

Concordia Village 4101 W. Iles Ave. Springfield, IL 62711 217.793.9429 Lutheran Hillside Village 6901 N. Galena Rd. Peoria, IL 61614 309.692.4600

REACH West County 12120 Conway Rd. St. Louis, MO 63141 314.251.6600 Richmond Terrace 1633 Laclede Station Rd. St. Louis, MO 63117 314.646.8000

Dunn Road Manor 3399 Dunn Rd. Florissant, MO 63033 314.830.2774

Madison Manor 207 N. Madison Ave. Lebanon, MO 65536 417.588.9633 Rose Hill House I & II 225 W. Rose Hill Ave. Kirkwood, MO 63122 314.966.0747

Halls Ferry Manor 8725 Halls Ferry Rd. St. Louis, MO 63147 314.388.1944

The Village at Mackenzie Place 8520 Mackenzie Rd. Affton, MO 63125 314.884.7900

Hilltop Manor 11 Hilltop Village Center Dr. Eureka, MO 63025 636.938.3387

Vernon Heights 550 Harwood Ave. Lebanon, MO 65536 417.532.9733

Hylton Point Apartments 5500 Maple Ave. St. Louis, MO 63112 314.361.4111

Westfield Manor 7245 Westfield Plaza Dr. Belleville, IL 62223 618.233.5506

Hylton Point II Apartments 933 Belt Ave. St. Louis, MO 63112 314.361.1100

HOME & COMMUNITY BASED SERVICES Home Health & Private Duty 314.963.3430 Hospice 314.446.2539 Outreach Services Outreach Social Services | 314.446.2475 Good Neighbor Program | 314.446.2471 Volunteer Money Management | 314.446.2474

1150 Hanley Industrial Ct. St. Louis, MO 63144 314.968.9313 LSSLiving.org