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LEADING

HEALTH FORWARD

Greetings from all of us at Memorial Healthcare System — our Board and all 16,645 members of the Memorial family — as we mark a significant year of accomplishment. This Annual Report covers advancements Memorial has made over the most recent fiscal year (May 1, 2022, through April 30, 2023) and gives you a preview of the exciting ways we’re leading healthcare into the future. In many ways, that future is already here.

Even before the COVID-19 pandemic, we were changing the ways we delivered healthcare. In recent years, we laid the foundation to move from treating patients only when they needed us to playing an active, long-lasting role in the lives of patients and families. We wanted to be their partners in improving and maintaining their health and well-being. The pandemic paused some of those efforts and accelerated others, but as you’ll see in this report, we are well on our way to becoming and remaining that trusted partner.

We’re doing that by focusing on four major areas, which you’ll see discussed further in these pages:

  • Culture and Mission – Our nationally recognized workplace culture, developed over 70 years of serving as a public, community-based system, uniquely positions us to be a 360-degree provider for long-term health
  • Workforce Development – We are making great strides in attracting, training and retaining highly qualified medical staff and clinicians, with the skills and expertise to provide person-centered, proactive healthcare services through the year 2050 and beyond
  • Strategic Partnerships – Our growing linkages with other providers and community organizations are expanding our presence and reach, and elevating the services we can provide
  • The Memorial Experience – Our reputation for clinical excellence and compassionate care, combined with our Primary Care network, are powering us past disruptors in the market and offering healthcare consumers what they want: care that’s evidence-based, timely, convenient and comprehensive

The results we’ve seen so far — and will continue to see in the years to come — demonstrate that Memorial is back to the work that we’re known for doing so well: pursuing everyday excellence and constantly striving for operational improvement. A lot of it has been thanks to the ideas and feedback we’ve heard from our physicians, our employees and members of our community. In that spirit, we hope you read this report with appreciation for the things we’ve been able to accomplish together.

Thank you for staying with us on this journey and for giving us the inspiration to not just move health forward, but to lead it.

Scott Wester, FACHE
President and Chief Executive Officer

Brad Friedman
Chairman of the Board

Board of Commissioners

South Broward Hospital District

May 1, 2022-April 30, 2023

Back (L-R): Brad Friedman, Chairman; Dr. Luis E. Orta, Commissioner; Jose Basulto, Commissioner; Steven Harvey, Secretary/Treasurer
Front (L-R): Douglas A. Harrison, Commissioner; Elizabeth Justen, Vice Chair; Laura Raybin Miller, Commissioner

Leadership Team

Memorial Healthcare System

K. Scott Wester, FACHE
President and Chief Executive Officer

Nina Beauchesne, FACHE
Executive Vice President and
Chief Transformation Officer (Retired)

Leah A. Carpenter, FACHE
Executive Vice President and
Chief Operating Officer

Stephen Demers
Chief Executive Officer
Memorial Hospital Miramar

Vedner Guerrier
Executive Vice President and
Chief Transformation Officer

Kevin R. Janser
Senior Vice President and President, Memorial and Joe DiMaggio Children's Hospital Foundations

Matthew Muhart
Executive Vice President and
Chief Strategy Officer

Holly Neville, MD
Associate Chief Medical Officer

Peter Powers, FACHE
Chief Executive Officer
Memorial Regional Hospital

Monica Puga, APRN
Senior Vice President and
Chief Nurse Executive

Frank Rainer
Senior Vice President and
General Counsel

Aharon Sareli, MD
Executive Vice President and
Chief Medical Officer
Memorial Healthcare System
Chief Physician Executive, Memorial Physician Group

David Smith
Executive Vice President and
Chief Financial Officer

Caitlin Stella, MPH
Chief Executive Officer
Joe DiMaggio Children’s Hospital
and Pediatric Services

Joe Stuczynski
Chief Executive Officer
Memorial Hospital West

Jeffrey S. Sturman
Senior Vice President and
Chief Digital Officer

Felicia Turnley
Chief Executive Officer
Memorial Hospital Pembroke

Margie Vargas
Senior Vice President and
Chief Human Resources Officer

Phil A. Wright, II
Chief Executive Officer
Memorial Regional Hospital South

Douglas A. Zaren, FACHE
Chief Executive Officer
Memorial Regional Hospital South (Retired)

Memorial Physician Group

Physician Leadership Council

Aharon Sareli, MD

Je-Anne Beaufort, MD

Brian Cauff, MD

Daniel Chan, MD

Brett Cohen, MD

Michael Cortelli, MD

Christopher DeMassi, MD

Christopher Gannon, MD

Seyed Ghasemian, MD

Jennifer Goldman, DO

Iftikar Hanif, MD

Dean Hertzler, MD

Brian Hunis, MD

Basit Javaid, MD

Michael Jofe, MD

Diana Martinez, MD

Juan Martinez, MD

Holly Neville, MD

Samuel Ostrower, MD

Luis Raez, MD

James Salerno, MD

Frank Scholl, MD

Jorge Sotelo, MD

Memorial Health Network

Memorial Health Network negotiates value-based agreements with health plans to improve the overall health of populations by shifting the paradigm of care to focus on prevention and wellness. By deploying strategies that assist physicians with managing their patient panel more efficiently through practice transformation, Memorial Health Network lowers the total cost of care for a specific population while simultaneously improving the quality of care delivered. Memorial Health Network Improves efficiency by enhancing communication between hospitals, ancillary facilities and providers to ensure individuals get the right care, at the right site of service, at the right time. In the timeframe between the inception of Memorial Health Network in 2013 and 2022, it has outperformed contractual targets by over $185M while meeting all clinical quality measures.

Physician Board Members

Kenneth J. Budowsky, MD

Donald Dixon, MD

Randy Katz, MD

Todd Kazdan, MD

William Pena, MD

Nigel Spier, MD

Chiapone Ting, MD

David Weiss, MD

Named a best place to work for 14 years

Also awarded Family-Friendliest workplace for a third time

Memorial Hospital Pembroke earned straight A’s for patient safety for 6 years in a row
(2017-22)

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34 Years of Leadership

Nina Beauchesne, FACHE, Retires

Memorial bid goodbye to one of its longest serving and most inspiring leaders when Nina Beauchesne, FACHE, Executive Vice President and Chief Transformation Officer, retired in July 2023 after 34 years with the system.

“I had mixed emotions about retiring since I’ve been here so long,” she says, “but with a new granddaughter to enjoy, I’m looking forward to the next chapter of my life.”

Throughout her career at Memorial, Ms. Beauchesne made unique contributions to the healthcare system’s growth and excellence, helping to make it the nationally recognized provider it is today. She first joined Memorial as Administrative Resident of Memorial Hospital in 1989 and then became Assistant Administrator of Memorial Hospital West in 1991. A career-changing appointment followed in 1995, when then-President and CEO Frank Sacco asked her to become the first CEO of Joe DiMaggio Children’s Hospital. She also later served as the first female member of the executive staff in the system’s history.

As Joe DiMaggio Children’s Hospital CEO, Ms. Beauchesne presided over many of its major milestones, including the design, construction and opening of the first freestanding children’s hospital in Broward and Palm Beach County in 2011. Just six years later, Planetree Inc. named Joe DiMaggio Children’s Hospital a Person-Centered Organization — the first pediatric facility in the world to receive that recognition.

Ms. Beauchesne’s imprint on Memorial also includes the formation of Memorial Health Network and her robust recruiting efforts for and executive leadership of Memorial Physician Group. Over the last 10 years, she has expanded the Group to 400 employed physicians and 250 advanced-practice providers.

“Nina is the key executive leader behind the successful establishment of Memorial Physician Group and the ongoing growth of the physician enterprise,” says Aharon Sareli, MD, Executive Vice President and Chief Medical Officer. “She leads with commitment and passion — ultimately, she is the leader Memorial physicians truly trust and respect.”

Ms. Beauchesne has also provided executive leadership for Memorial’s Chief Nursing Executive and led Memorial Cardiac and Vascular Institute and Memorial’s Community Services, including its health education and safety programs. Most recently, as Chief Transformation Officer, she had leadership of Memorial’s Population Health and its health equity initiatives to remove barriers to care.

Ms. Beauchesne will continue to make contributions to Memorial’s progress during her retirement, in an advisory role as Special Projects Consultant to the President and CEO. She also will remain an influential voice on the philanthropic side, thanks to her appointment in June as Director Emeritus of Memorial Foundation and Joe DiMaggio Children’s Hospital Foundation — an honorary title given to people who have provided significant leadership and support to Memorial and its foundations. In Ms. Beauchesne’s case, the appointment pays tribute to her 28 years of service as a member of the Board of Directors.

The foundations also announced the creation of the Nina Beauchesne Administrative Fellow Endowment, which will provide scholarships to recruit and retain outstanding administrative fellows and help fund the overall Administrative Fellows program at Memorial.

“These honors are testaments to Nina’s invaluable contributions and the profound respect we hold for her expertise,” says Brett Rose, Chair, Memorial and Joe DiMaggio Children’s Hospital foundations.

Looking back, Ms. Beauchesne believes that it is her leadership in developing the children’s hospital that will remain her most significant contribution to the community that Memorial serves.

“Taking Joe DiMaggio Children’s Hospital from a few beds to the freestanding hospital of today is something I’m most proud of,” she says. “To have been able to grow the children’s hospital and Memorial’s physician enterprise by bringing everyone to the table and working closely with them — always putting patients and families first — brings me the greatest satisfaction.”

Memorial President and CEO Scott Wester agrees.

“One of Nina’s greatest contributions to Memorial has been her consistent ability to promote collaboration,” he says. “She has always worked with colleagues across the system to keep Memorial’s culture centered around patient- and family-centered care, and to champion our commitment to teamwork, quality and safety, and respect. Her inspiration will continue to help us meet the opportunities and challenges of our ever-changing healthcare landscape.”

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Going Ashore

Douglas A. Zaren, FACHE, Retires

Memorial “piped ashore” another long-serving executive when Doug Zaren, CEO of Memorial Regional Hospital South — and proud veteran of the U.S. Navy — retired, leaving a thriving and successful hospital and rehabilitation provider to his successor.

Mr. Zaren’s 2007 appointment started Memorial Regional Hospital South on the journey to becoming the home of Memorial Rehabilitation Institute. Under his guidance, the hospital grew from 33 acute rehab-care beds and 500 employees to 216 acute-care beds, 89 acute-rehab beds and a staff of 750, including the integration of the Physical Medicine & Rehabilitation (PM&R) medical staff into Memorial Physician Group. Today, that group has 14 PM&R physicians and 16 PM&R residents.

Many inpatient rehab programs were established at the hospital during his time there, including a brain injury specialty program, cancer rehabilitation specialty programs, a stroke specialty program, all for adults, and interdisciplinary outpatient medical rehabilitation programs for adults and children. For children and adolescents, Memorial also added a pediatric specialty program.

The depth and breadth of rehabilitation care earned national recognition as well. U.S. News & World Report named Memorial Rehabilitation Institute on the Memorial Regional Hospital South campus a 2023-2024 Best Hospital for Rehabilitation.

In addition, Memorial Orthopedic Sports and Surgery Center added to its portfolio of services as well, and Memorial Regional Hospital South has the busiest Imaging Center in Broward County. In 2022, the Memorial Regional Hospital South Women’s Center performed 25,000 mammograms.

As Mr. Zaren knew, however, it would take more than all those improvements and additions to make a hospital worthy of the name Memorial.

“You don’t just hang a Memorial sign on a hospital and have it instantly become Memorial,” he says. “When I think of what constitutes Memorial’s culture, I think of cohesiveness. We take care of each other and will also help one another, no matter how difficult it may be.”

Serving as CEO of Memorial Regional Hospital South was the right fit for Mr. Zaren, who arrived at Memorial after serving as Chief Operating Officer of Florida Medical Center in Fort Lauderdale. Prior to that appointment, he was Administrator of Tenet’s Gulf Oaks Hospital and Associate Administrator of Gulf Coast Medical Center in Biloxi, Mississippi.

Those appointments followed a distinguished 23-year, active-duty Naval career, from which he retired as a Lieutenant Commander in the Medical Service Corps. His military experience helped prepare him to seamlessly hand off his responsibilities to his successor.

“Leaving something great in someone else’s hands is what I trained to do,” Mr. Zaren says. “Memorial’s great team will continue the success, and whoever becomes CEO after me will pick it up and keep improving it.”

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A Rich History of Leadership

Imagine that you’re in a time machine at the corner of Johnson Street and 35 Avenue in Broward, and you crank it back to find out what Memorial Healthcare System was like in 1953.

You’d see a lot of changes.

First, today’s freestanding Joe DiMaggio Children’s Hospital would vanish, including the top four floors that were just added in 2022. Memorial Regional Hospital would lose its eight-story South Tower and S.S. Holland Wing, its parking garage and its medical office building.

Across Broward County, 11 Memorial Primary Care locations would disappear. So would seven Memorial Fitness Zones and the Joe DiMaggio Children’s Hospital Specialty Center in Wellington. Memorial Regional Hospital South would once again be Hollywood Medical Center, and there would be no Memorial Hospital Miramar.

Memorial Manor, Memorial Hospital Pembroke and Memorial Hospital West? Don’t exist yet — and the new freestanding Memorial Cancer Institute wasn’t yet a twinkle in anyone’s eye.

There would be no trainees in white coats traversing the halls of Memorial hospitals, because there was no Graduate Medical Education. And of course, there were no personal computers in 1953, so nobody in Broward was visiting their doctor virtually or using MyChart to manage their health.

In other words, if you end up all the way back to February 1953, you’d see a single, 100-bed community hospital named Memorial welcoming its first patient.

You’d see a much sleepier Broward. Instead of today’s county of 2 million people, fewer than 85,000 people lived here 70 years ago, with just over 14,000 in the city of Hollywood. But more folks would soon arrive: Air conditioning was just being introduced.

It won’t take long on your trip back in time to appreciate how much Memorial and the community it serves have grown over the last seven decades and what a difference Memorial’s leadership has made for moving health forward in South Florida.

And you’d be happy to return to 2023 — because today, you can take advantage of all the expanded medical services that Memorial offers: cardiac and vascular, neuroscience, cancer, pediatrics, transplants, orthopedics, women’s health, sickle cell, behavioral health, and more. And you can benefit from the community programs and sponsorships that make Memorial such a valued neighbor and friend to patients and families at every juncture of their lives.

Your time travel’s over. In these pages, we’ll look at everything Memorial has accomplished in the past year — and look ahead to how Memorial is leading next-level healthcare for decades to come.

Because even after 70 years, Memorial’s story of healing bodies, minds and spirits has only just begun.

OUR VISION

To be a premier, clinically integrated delivery system providing access to exceptional patient- and family-centered care, medical education, research and innovation for the benefit of the community we serve.

OUR MISSION

Heal the body, mind and spirit of those we touch.

OUR SERVICE VISION

Memorial Healthcare System is where deeper caring creates smarter healthcare.

Memorial Through the Years
1947

South Broward Hospital District is created by Florida’s Legislature. The first chairman of the Board of Commissioners is Frank Stirling, a citrus grower from Davie, who co-founded Flamingo Groves

1953

Memorial Hospital opens with 100 beds; 2,150 admissions for the year

Population of Broward County is 83,318

Joseph McAloon (second from right below) is first administrator in 1953

1954

Housing was in short supply in the South Broward Hospital District’s early days. So, Memorial built a Nurses’ Home nearby as quarters for nurses

1960

“It Takes Years to Build a Hospital, Seconds to Need One”

Broward voters approve expansion of Memorial Hospital to 400 beds:
15,236-YES   975-NO

1964

Number of Memorial employees grows to 662

1965

Sal Mudano is named hospital administrator

1970-1976

Memorial adds gastroenterology, psychiatric and pediatric/adolescent services, radiation therapy, progressive coronary care and rehabilitation

1976

Memorial opens Broward’s first urgent care center under the name Initial Care Facility. Later becomes Memorial Pembroke 24/7 Urgent Care Center and now Memorial Pembroke 24/7 Emergency Care Center

1982

Cardiac Surgery begins. Predictions are 60 to 90 people will have open-heart surgery that year. More than 300 do

1986

Frank Sacco becomes President and CEO

1988

A 14-year-old Memorial patient becomes Florida’s youngest person to have heart bypass surgery

Memorial Oncology Center opens

1989

Memorial Manor nursing home opens with 85 beds

1992

Memorial Hospital West opens with 100 beds.

Joe DiMaggio attends the dedication of Joe DiMaggio Children’s Hospital, opens with 144 beds.

Lotsy Dotsy, Resident Clown, is created and becomes a staple of patient- and family-centered care at the children’s hospital

1995

Memorial Hospital becomes Memorial Regional Hospital

Memorial Healthcare System launches

Pembroke Hospital joins Memorial from HCA with 301 beds

1996

In May, the smallest baby born at Memorial gets to go home. Just 15 ounces at birth, the “miracle baby” is 4 pounds, 11 ounces at discharge from Joe DiMaggio Children's Hospital

Breast Center opens

2000

Memorial launches its website, MHS.net

2005

Memorial Hospital Miramar opens with 100 beds

2006

Hollywood Medical Center joins the system as Memorial Regional Hospital South

2008

New Breast Cancer & Image Recovery Center opens

2010

First pediatric heart transplant in Broward County

14-year-old, Ana, with her mother

2011

Joe DiMaggio Children’s Hospital Broward County’s first freestanding pediatric hospital opens

2012

South Broward Community Health Services launches

2014

President Bill Clinton receives the first Joe DiMaggio American Icon Award

2016

Frank Sacco retires; Aurelio Fernandez becomes President and CEO

24/7 telehealth service MemorialDOCNow launches

2018

Graduate Medical Education begins

2019

South Broward Community Health Services becomes Memorial Primary Care

2020

Global COVID-19 pandemic

Locally, Memorial takes a community leadership role, providing testing, safe care, vaccines and community support services

One of only five healthcare systems in Florida chosen as host for the Pfizer-BioNTech COVID-19 vaccine. The initial shipment of 19,500 vaccines to inoculate medical staff arrived on Dec. 14

2022

Aurelio Fernandez retires; K. Scott Wester becomes President and CEO

Joe DiMaggio Children’s Hospital expands, adding four floors

2023

Population of Broward County is 1.9 million

Number of Memorial employees grows to 16,645

Number of admissions for the year is 77,482

Memorial now has 51 locations

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K. Scott Wester, CEO and President, with Marcia Brennan, BSN, RN

Another Strong Round of Value Improvements

Memorial’s Value Improvement Program launched a second iteration that once again succeeded in finding millions in savings, benefiting patients and families by helping to make healthcare more affordable, efficient and effective.

VIP 2.0, which wrapped up in October 2022, called on more than 100 leaders, front-line workers, stakeholders and other subject matter experts from across the system to find another $100 million in savings. They exceeded the goal, identifying $108 million in savings.

The collaborative, cost-saving initiative began in 2018. It engages staff in working together to identify new opportunities for Memorial to reduce costs, while still providing its nationally recognized brand of high-quality, patient- and family-centered care.

For VIP 2.0, teams for clinical efficiency, labor, operational improvements and revenue oversaw 22 subteams, whose members examined individual categories within their respective areas.

A third phase of the program — Reimagine 1.0 — will focus on process changes and patient flow, exploring how patients are admitted and moved through the system.

Lowest Tax Millage Rate on Record

For a 12th consecutive year, the South Broward Hospital District Board of Commissioners, which oversees Memorial Healthcare System, reduced its millage rate to 0.1010 — the lowest ever recorded. The reduction was possible despite lingering challenges from the COVID-19 pandemic, market challenges such as inflation and healthcare workforce trends.

The 0.1010 millage rate represents an 11.71 percent decrease from last year’s rate of 0.1144 and will result in an estimated $7.5 million in gross tax revenues.

The newly adopted millage rate will not be used to fund uncompensated care, which totaled $917 million in FY23. The district will use operating income to cover all uncompensated care costs for the entire system, including its six hospitals and 12 Memorial Primary Care practices.

Memorial also remains one of only a handful of public hospitals in the nation to achieve AA, Aa3 financial ratings by Standard & Poor’s and Moody’s, respectively.

Managing Workforce Shortages

Memorial continues to bounce back from pandemic-related challenges and healthcare workforce shortages that have taxed the health system’s finances in recent years. Memorial continues to hire more staff to cover patient needs and healthcare shortages — some of which began before the pandemic and others that stemmed from the worldwide health crisis. Memorial continues to pay incentives to nursing and technical staff to cover shifts as needed and uses traveler and agency workers to supplement its employed staff. However, the need for these workers and the number required have decreased as we have made great strides in both hiring and reducing turnover.

Financial Highlights

Fiscal Year 2023

MILLAGE RATE

UNCOMPENSATED CARE

PATIENT VOLUME