FoundationAnnualReport2022

Hospitals and health systems are the cornerstones of any community. Residents depend on access to healthcare 24 hours a day, seven days a week, 365 days a year. The value that Firelands Health brings to our region is immeasurable. We are committed to remaining independent, and we are financially strong. During the decade before COVID, Firelands experienced the highs of increasing revenue, solid reimbursement, and a growing workforce. Those successful years allowed us to grow while building a solid financial foundation. 2022 presented unprecedented challenges for the healthcare industry. Across the nation, the effects of Post-COVID-19 during 2022 included reduced hospital volumes (revenues) and increased labor expenses, pharmaceutical expenses, and medical supply expenses due to inflation. Medicare and Medicaid programs account for more than 60% of all care provided in the hospital setting. Yet these programs reimburse hospitals at a level less than the cost of providing the care. The Financial Statement in this report compares 2021 to 2022, and mirrors the challenges listed above. 2022 represents the most significant loss in the history of Firelands Health. We are not alone in this. During the past year, four hospitals within an hour or so of Firelands Health, announced closures, and 63% of the hospitals in Ohio are in the red. In late 2022, the team at Firelands Health developed a post-COVID recovery plan that has over seventy initiatives. The plan addresses the challenges of our reshaped healthcare economy. The implementation of this Friends 2