Gary Steiner © Desert Ridge Photography /

© Desert Ridge Photography / Gary Steiner
We all want to be our best. Which is what Phoenix
under consideration, this distinction is by far the most
Children’s Hospital formally set out to be in 2002, when
competitive award a hospital can receive. Our selection
we crafted our bold vision for the future. Over the past
was based on the results of The Leapfrog Group’s annual
two years, we were recognized for achieving that goal as
hospital survey, which focuses on three critical areas
Phoenix Children’s was again ranked by U.S. News & World
of hospital care: how patients fare, resource use, and
Report’s Best Children’s Hospitals. The list specifically
management structures in place to prevent errors.
recognized our excellence in these subspecialties:
Phoenix Children’s was one of only
12 children’s hospitals in the country
to meet these rigorous standards.
• Cardiology and
Cardiovascular surgery (2013-14)
• Neonatology (2012-14)
• Nephrology (2012-14)
• Neurology and Neurosurgery (2012-14)
• Pulmonology (2012-13)
best locally, regionally and nationally. We remain Arizona’s
• Urology (2013-14)
only licensed, freestanding children’s hospital, among the
ten largest such institutions in the United States.
These rankings are particularly gratifying because
In 2012 we continued to position ourselves to be the
they are based both on a hospital’s reputation among
doctors, which is an honor in itself, and on objective
throughout the state, offering both specialty and urgent
analysis of patient outcomes and data on the structural
care in Avondale, Glendale, Mesa, and Scottsdale. We also
resources for pediatric care. Phoenix Children’s was the
established a specialty care clinic in Yuma. We are home to
only Arizona hospital to make this prestigious list.
six comprehensive, multidisciplinary Centers of Excellence
led by renowned pediatric specialists. We are changing the
Also rewarding in 2012 was being named to The
We extended our reach to children and parents
Leapfrog Group’s annual rankings of the Top Children’s
landscape of pediatric medicine.
Hospitals in the nation. With more than 1,200 institutions
We’ve joined forces with Mayo Clinic-Scottsdale
to institute a formal Pediatric Liver Transplant program,
performing the very first such transplant in the Valley in
over two decades. And we launched a new center that not
so long ago would have been considered the stuff of
pure imagination: the Ronald A. Matricaria Institute
of Molecular Medicine, dedicated to unlocking the
genomic secrets of pediatric disease.
I could go on, but that’s what this Annual Report
we’ve made toward being the very best, bringing
is for: to deliver the hopeful news on the progress
hope, healing and high-quality health care to our
children and their families.
Yours in Good Health,
Robert L. Meyer
President and CEO
page 2
GROWTH // Phoenix Children’s Hospital 2012 BIGGER
2012 wasn’t just a big year for Phoenix
Children’s Hospital. It was our best so far, resulting
care, with the best outcomes, size really does matter.
in a breadth and depth of pediatric medical services
Being bigger means we are able to
offer the Southwest’s most
comprehensive medical services
solely dedicated to children.
and specialties unmatched in our 30-year history.
We saw growth in nearly every area of the Hospital,
including physician visits, surgeries, emergency
department visits, and sheer square footage of
facility space.
That’s good news not only for our Hospital,
but for the children and families of Phoenix and our
state who look to Phoenix Children’s to provide
exceptional pediatric care that meets the
highest standards through our broad range of
specialty programs.
Two major milestones contributed to the
tremendous advances we made in 2012. We finished
our first full year in our new 11-story, state-of-the-art
tower, a facility that has significantly expanded both
our capacity and our capabilities. This was also the
first complete year of patient service following our
landmark strategic alliance with Dignity Health
Arizona, a combining of resources that brought the
majority of St. Joseph’s Hospital and Medical
Center pediatric services and corresponding
patients to Phoenix Children’s. As a result of both
expansions, Phoenix Children’s was named among
Modern Healthcare’s Largest Children’s Hospitals.
When it comes to providing the very best
It also means we see more patients and treat a
wider variety of cases—from routine to rare—giving
our physicians and staff vital clinical experience
and expertise found nowhere else in the region.
Experience leads directly to the quality outcomes
we’ve posted, outcomes on par with other leading
pediatric institutions across the country.
Our growing size gives us the resources to
conduct innovative research, including clinical
trials for developing new diagnostic methods
and treatments. It allows us to provide advanced
education and training for our clinical providers.
And it makes us incredibly knowledgeable and
effective advocates for Arizona’s children.
As the country’s fifth-largest city, Phoenix
deserves a children’s hospital that ranks among
the nation’s very best. By almost every measure,
Phoenix Children’s has achieved that goal,
continuing to fulfill our vision to be the premier
regional pediatric center in the Southwest—a
top-tier hospital that is
page 3
GROWTH // Phoenix Children’s Hospital 2012 Growth is a fundamental part of our mission to provide hope, healing and the
best health care for children and their families. Broadening our geographic
coverage and increasing our facility square footage expands our service lines
and enhances our care. It brings care closer to home for our growing number
of patients and families.
In 2012 we continued this commitment to investing in services, improvements and growth.
© Desert Ridge Photography / Shawna Mummert
New Specialty and Urgent Care Centers opened in Scottsdale
and Avondale, providing convenient pediatric-focused medical
services closer to home for our families. In addition, Phoenix
Children’s specialty care services are now available in Yuma,
through a collaboration with Yuma Regional Medical Center.
© Desert Ridge Photography / Louise Debusk
The new Phoenix Children’s Heart Center opened on the 2nd
Floor of the main building, bringing together all the resources
to serve the complex needs of patients with heart conditions.
© Desert Ridge Photography / Chris Barr
Responding to the growing number of patients in need, our
Level I Pediatric Trauma Center doubled its capacity, expanding
from 2 to 4 resuscitation units.
© Desert Ridge Photography / Kate McElwee
The Emergency Department (ED) expanded, adding 16 much
needed exam rooms to ease patient flow, especially during peak
emergency season. A new Observation Unit features 24 private
rooms, including 8 monitored beds for patients who require
observation but not admission. This not only increases our ED
capacity and our compliance with correct patient status, it
improves our services by streamlining triage, modifying patient
flow, optimizing throughput and, ultimately, reducing the length
of stay.
The Phoenix Children’s Surgery Center opened a second location,
inside the East Valley Center in Mesa and offers two high-tech
operating rooms and a gastrointestinal endoscopy suite.
page 4
CENTERS OF EXCELLENCE // Phoenix Children’s Hospital 2012 Phoenix Children’s six Centers of Excellence are among the Hospital’s largest
clinical programs, and represent the very finest in pediatric health care in Arizona.
Our investment in building these programs ensures that children with complex and
acute conditions will receive the highest quality care right here in Arizona.
Barrow Neurological Institute at
Phoenix Children’s Hospital
Patients that suffer from complex and
interrelated neurological and behavioral
conditions require a team
of medical professionals.
Barrow at Phoenix
Children’s earned its
ranking on the list of
U.S. News & World
Report Best Children’s Hospitals for Neurology and
by taking a
approach to
treating the
growing number of
children diagnosed
with neurological
conditions such
as developmental
delays, autism,
© Desert Ridge Photography / Lynn Dao
epilepsy, and
traumatic brain injuries. Collaborating to treat these
patients enhances care and improves outcomes.
Barrow at Phoenix Children’s brought together
the divisions of neurology, neurosurgery, psychiatry, and
psychology to form Barrow Neurological Institute at
Phoenix Children’s Hospital. The Institute places a large
emphasis on teaching and research activities to train the
doctors—and seek the cures—of tomorrow.
Barrow at Phoenix Children’s is the largest pediatric
neuosciences program in the country.
patient visits in 2012; an increase of
Center for Cancer and Blood Disorders
© Desert Ridge Photography / Anna Kupperberg
This Center is the largest pediatric program of its
kind in Arizona, providing complete care for children
diagnosed with malignancies and life-threatening
hematologic diseases. Our team includes many
specialists, each with a specific area of expertise within
the hematology and oncology fields, including the areas
of blood and marrow transplant, neuro-oncology, solid
tumors, survivorship, early drug development, and
liquid tumors.
A family-centered approach is essential as we
provide comprehensive, personalized care to every
page 5
CENTERS OF EXCELLENCE // Phoenix Children’s Hospital 2012 hematology and oncology patient. Each child has his or
her own team of physicians, nurses, social workers,
physical therapists, nutritionists, and more that provide
care throughout the treatment and healing process. The
team works to make sure that the care regimen fits in with
the child’s—and the family’s—needs.
One of the many highlights of 2012 occurred when
The Center’s Ottosen Family Blood and Marrow Transplant
Program, a collaboration with Mayo Clinic-Scottsdale,
ranked second among all U.S. BMT programs with a 75
percent one-year survival rate for patients undergoing their
first allogeneic stem cell transplant compared to a median
of 62 percent for all programs ranked.
35% 80%
advanced family-centered care for simple and complex
heart conditions, care that earned its ranking in the
U.S. News & World Report Best Children’s Hospitals for
Cardiology and Heart Surgery.
In 2012, the Phoenix Children’s heart transplant
program received certification by United Network for
Organ Sharing (UNOS), becoming the Valley’s only
pediatric heart transplant program.
With today’s modern
treatment protocols,
more than
of childhood cancer
diagnoses are leukemia,
making it the most
common childhood cancer.
of those patients
survive into adulthood.
Before modern treatments were developed, most
patients didn’t survive 5 years past diagnosis.
Phoenix Children’s Heart Center
The Phoenix Children’s Heart
Center is the premier regional
referral center in the Southwest
for children with heart conditions
and the fifth-largest program of
its kind in the U.S. It offers the
most comprehensive inpatient
and outpatient pediatric cardiac care services to infants,
children, teens, and even adults with congenital heart
defects. Children with rhythm disturbances, heart failure,
and other cardiac-related problems receive the highest
level of care here.
Led by a comprehensive, multidisciplinary team,
which includes subspecialty trained physicians and
cardiac nurses, the Children’s Heart Center provides
© Desert Ridge Photography / Corey Schwartz
Through a grant from the Phoenix Children’s
Leadership Circle, the Phoenix Children’s Heart Center
acquired a 3D printer to create life-sized models of
defective hearts. These anatomically correct models
help doctors explain the intricacies of treatment to
patient families, help orient cardiovascular surgeons to
the defective heart prior to surgery, and are eventually
used to train future pediatric specialists studying at the
University of Arizona College of Medicine-Phoenix.
Since receiving heart transplant certification from United
Network for Organ Sharing (UNOS), the Phoenix Children’s
Heart Center has conducted more than 24 heart transplants.
Ranging from infants to teens
page 6
CENTERS OF EXCELLENCE // Phoenix Children’s Hospital 2012 Center for Pediatric Orthopaedics
Level One Pediatric Trauma Center
Ranked as the sixth-largest program of its kind in
The only verified Level I Pediatric Trauma Center in
the U.S., the Center for Pediatric Orthopaedics is
Arizona, this is the state’s premier site for the evaluation,
dedicated to offering the most comprehensive,
stabilization, treatment, and care of children who have
state-of-the-art care for children’s orthopaedic and
experienced a traumatic injury.
musculoskeletal disorders.
One of the standouts of our orthopaedic care is
Spinal Fusion Surgery for patients with scoliosis and
other spinal deformities. In 2012, our team developed a
scoring methodology to predict risk of complications
following the treatment of scoliosis. The result is the
highest level of care that provides optimal treatment
for all patients. We also launched a Comprehensive Hip
Preservation Program and a multidisciplinary Cerebral
Palsy Clinic.
Center lowers the risk of death by 25 percent, and children
cared for here have a lower mortality rate and shorter
Other key programs include treatment for sports
Care at an ACS-verified Level I Pediatric Trauma
injuries, clubfoot, and muscular dystrophy. As the Center
lengths of stay compared to care at adult trauma centers.
for Pediatric Orthopaedics grows, other programs
being developed include clinics for children with limb
that has exceeded all expectations in quality and quantity
deficiencies, musculoskeletal tumors, and skeletal
of care. With an expansion of trauma bays in 2012, we
dysplasia. On the horizon is a state-of-the-art motion
effectively doubled our capacity, ensuring our ability
analysis lab, the Bubba Watson and PING Golf Gait Lab.
to accept multiple severely injured patients. We have
We made an investment in this Center of Excellence
ensured that Emergency Medical Services (EMS) does
not have to choose which children in a crash receive the
highest level of care due to capacity constraints.
Our relationship with the EMS personnel is an
important one. In 2012, we provided pediatric trauma
education to more than 1,000 Emergency Medical
Services members. This advanced training ensures the
highest level of care in the field, even before the patient
arrives at Phoenix Children’s.
Phoenix Children’s has Arizona’s only
physician certified in the non-surgical Ponseti
method for treating clubfoot. Dr. Lee Segal,
Herbert J. Louis, MD, Endowed Chair of Pediatric Orthopaedic
Surgery, studied the method internationally to bring this
expertise to Phoenix Children’s.
Phoenix Children’s treated 2,355 total
trauma patients in 2012 making it
one of the busiest pediatric trauma
centers in the nation.
CENTERS OF EXCELLENCE // Phoenix Children’s Hospital 2012 Newborn Intensive Care Unit (NICU)
In late 2012, we centralized our newborn services
on the Phoenix Children’s campus. Our Level IIIC
nursery holds the highest certification awarded by the
Arizona Perinatal Trust, and is ranked among the U.S.
News & World Report Best Children’s Hospitals for
Neonatology. In addition, we expanded comprehensive
physician specialty services for Dignity Health Arizona
NICUs, including their 65-bed Level III NICU and two
Level II NICUs representing 40 beds.
Each year, hundreds of babies throughout
Arizona and the Southwest are admitted to this
intensive care nursery—many born prematurely
© Desert Ridge Photography / Allen Ayers
with an array of medical conditions related to their
infants require surgical and subspecialist services,
immaturity, including respiratory distress syndrome,
which are all available here at Phoenix Children’s NICU
heart problems, immature skin and eyes, and under-
in a remarkably warm, personal and family-centered
developed digestive and neurological systems. Other
setting, giving them the best chance to survive and
patients are born full-term, but suffer from infection,
grow to reach their maximum potential.
congenital birth defects, in-utero drug exposure, and
complications from traumatic birth. Many of these
Phoenix Children’s is also home to one of
only two Neuro-NICUs in the country. This
Center treats infants who may suffer severe
consequences related to lack of oxygen during birth. Cooling
therapy and advanced technological monitoring improves
outcomes and can even reverse the effects of brain damage.
page 7
page 8
SUBSPECIALTIES // Phoenix Children’s Hospital 2012 Phoenix Children’s pediatric specialists work as a team to meet the needs of each child
by drawing from the resources of our world-class clinical programs. Our talented group
of doctors, nurses, and other health care professionals—along with pediatric-dedicated
facilities, equipment, and technology—have made Phoenix Children’s a leader in more than
70 areas of pediatric medicine.
No other medical group in Arizona has this breadth and depth of pediatric subspecialty services.
• Adolescent Medicine
• Heart Transplant
• Neuropsychology
• Allergy & Immunology
• Hematology
• Neurosurgery
• Anesthesiology
• Hepatology
• Nuclear Medicine
• Audiology
• HIV Clinic
• Nutrition
• Bone Marrow
• Immunology
• Occupational Therapy
• Infectious Disease
• Oncology
• Physical Medicine &
• Physical Therapy
• Plastic Surgery
• Podiatry
• Psychiatry
• Cardiology
• Psychology
• Cardiovascular
Critical Care
• Pulmonology
• Radiation Oncology
• Child Protection Team
• Radiology
• Cranial Facial
• Rheumatology
• Dentistry & Oral
• Sleep Medicine
• Speech Language
• Dermatology
• Developmental
• Extra Corporeal
Membrane Oxygenation
• Sports Medicine
• Telemedicine
• Kidney Transplant
• Ophthalmology
• Liver Transplant
• Orthopaedic Surgery
• Thoracic & Cardiac
• Emergency Medicine
• Molecular Medicine
• Otolaryngology
• Toxicology
• Endocrinology
• Naturopathic Medicine
• Pain Management
• Trauma
• Family Medicine
• Neonatology
• Pathology
• Urgent Care
• Forensics
• Nephrology
• Pediatric Critical Care
• Urology
• Gastroenterology
• Neuro Critical Care
• Vascular Surgery
• General Pediatrics
• Neurology
• Pediatric Hospitalist Medicine
• Genetics & Metabolism
• Neuro-Oncology
• Gynecology
• Neurophysiology
• Pediatric Surgery
• Pharmacy
page 9
RESEARCH // Phoenix Children’s Hospital 2012 If you’re going to be the best—in our case, the most comprehensive pediatric care provider
in the Southwest region—you have to prepare for it. That’s why Phoenix Children’s is
committed to innovative research supported by leading clinical trials that uncover new
treatment and diagnostic methods, while educating and training the pediatricians and
pediatric specialists of tomorrow through respected residencies and fellowships.
Highlighted here are some of the ways we expanded research, strengthened academic programs,
and advanced patient care in 2012.
New Research Laboratory
Phoenix Children’s acquired a leading Neuro-Trauma
research lab, along with its vast databank of ongoing
case studies and three federal grants, moving it from the
University of Kentucky to the University of Arizona College
of Medicine-Phoenix, Department of Child Health.
The lab is our first “wet bench” facility, meaning it’s
equipped to store and analyze living organisms, chemicals
and drugs—an important component of medical research.
100+ 150
Resident Success
Phoenix Children’s Residency Program earned
a ringing endorsement in 2012 from the Accreditation
Council for Graduate Medical Education (ACGME), which
granted its maximum accreditation time period of five
years, which means Phoenix Children’s met the highest
standards of excellence.
In related developments, pediatric resident match
results for Phoenix Children’s residents were better than
the national average in 2012. Residents request, in order of
preference, where they want to go into practice or fellowship
after graduation from their residency program. Competition
for the most coveted locations can be intense. Our residents
were awarded their first picks more often than the national
average, which indicates the quality and desirability of our
Pediatric residents continuing to fellowship
training were consistently selected by top-tier institutions,
for example, UCLA, UC-Davis, Denver Children’s,
Northwestern, Children’s Mercy, Mott Children’s, and
Seattle Children’s.
As part of our strategic alliance with Dignity
Health Arizona, we augmented our academic programs
significantly with the successful transition of the Child
Neurology Residency from St. Joseph’s Hospital to
Barrow at Phoenix Children’s, enabling us to better train
the pediatric specialists of tomorrow with neurological
page 10
HOSPITAL PROGRAM HIGHLIGHTS // Phoenix Children’s Hospital 2012 Beyond our Centers of Excellence are additional programs that highlight
Phoenix Children’s commitment to the highest quality care, clinical research,
medical education, and child advocacy.
Pediatric Center of Excellence
for Extracorporeal Life Support
(ECLS) in Arizona Award
© Desert Ridge Photography / Stuart Thurkill
We offered the first pediatric
and neonatal Extracorporeal
Membrane Oxygenation (ECMO)
service program in Arizona, used to
assist patients whose hearts cannot
pump blood on their own.
As a member of the
Extracorporeal Life Support
Organization (ELSO) since 1989,
Phoenix Children’s is the recognized
expert in the state on all forms of
extracorporeal life support.
This year, our ECMO program
became the first in the state to twice
receive ELSO’s “Center of Excellence”
Award in Extracorporeal Life Support.
Pediatric Liver
Transplant Program
In March 2012, Phoenix
Children’s Hospital’s Pediatric Liver
Transplant Program was certified
by the United Network for Organ
Sharing (UNOS), paving the way for
the first such program in Arizona to
provide an integrated, child-centered
liver transplant program within
a dedicated pediatric hospital. It
also produced another first for the
Valley in more than two decades:
a pediatric liver transplant, the
result of collaboration between
Phoenix Children’s and Mayo ClinicScottsdale.
© Desert Ridge Photography / Keith Pitts
Pediatric Nephrology and
Urology Earn “BEST” Rankings
U.S. News & World Report
recognized both the Pediatric
Nephrology and Pediatric Urology
Departments in their annual rankings
of the country’s Best Children’s
As the largest treatment center
in the Southwest for infants, children,
and adolescents with kidney (renal)
disorders and high blood pressure
(hypertension), the Nephrology
Department serves more than 90
percent of the pediatric kidney
transplants, hemodialysis, and
peritoneal dialysis in the Southwest.
Phoenix Children’s is also home to
Arizona’s only dedicated Pediatric
Dialysis Center.
Our Pediatric Urology
Department is ranked one of the best
in the country for the comprehensive
management of children’s health
problems related to the urinary
tract. The medical and surgical
treatment for problems such as
urinary tract infection, incontinence
and genital malformation, takes
into consideration the special
developmental needs of the child.
Ronald A. Matricaria Institute
of Molecular Medicine
Ronald A.
a Phoenix
Children’s Hospital board member,
made the founding gift to create
the Hospital’s Molecular Medicine
program that bears his name.
HOSPITAL PROGRAM HIGHLIGHTS // Phoenix Children’s Hospital 2012 This advanced medical research
institute brings new hope to young
patients facing life-threatening
diseases with sophisticated genomic
analysis and real-time access to
drug therapies.
Phoenix Children’s is
collaborating with leading bioscience
organizations in this venture,
including the University of Arizona
College of Medicine-Phoenix and
Translational Genomics Research
Institute (TGen). Molecular, or
personalized, medicine uses genetic
information to determine the right
treatment for the right patient at the
right time.
By studying a patient’s genetic
makeup, researchers can identify the
individual’s susceptibility to disease,
predict their response to a particular
drug, and match the patient with a
specific therapy. The Institute charts a
new course for addressing the unique
needs of children with cancer and
other serious diseases.
Frances H. McClelland Pediatric
Rehabilitation Center
12-bed Acute Rehab Inpatient Unit
and an Outpatient Therapy Center on
the Thomas Campus. Our inpatient
rehabilitation program is the only
one just for kids in Arizona, and
has been caring for hospitalized
patients for more than 15 years. The
program offers a comprehensive,
multidisciplinary approach by a team
of experienced pediatric professionals
to maximize recovery of children.
SimonMed Partnership
Phoenix Children’s entered
into an affiliation agreement
with leading diagnostic
imaging provider
SimonMed to provide pediatric
radiology interpretations to all 30
SimonMed locations. This enables
SimonMed to offer parents and
referring pediatricians reassurance
that their young patients’ imaging
results will be reviewed by a boardcertified pediatric radiologist from
Phoenix Children’s, providing the
highest level of specialized expertise
in interpreting, diagnosing, and
recommending treatment.
Continuous Quality
Improvement for our Kids
© Desert Ridge Photography / Anna Kuperberg
Phoenix Children’s approved
a business plan for the Frances H.
McClelland Pediatric Rehabilitation
Center in 2012, which will include a
Phoenix Children’s joined the
Ohio Children’s Hospitals Solution
for Patient Safety (OCHSPS), one
of 25 Health Engagement Networks
nationally, and the only one dedicated
to pediatrics. This consortium of
leading children’s hospitals works
to eliminate serious harm across
all children’s hospitals in the U.S.
Together, we have established
aggressive goals for reducing hospitalacquired conditions, readmissions,
and serious safety events. We are
sharing processes, data, and outcomes
to ensure that this Partnership for
Patients results in safe medical care for
children that continues to get safer.
Phoenix Children’s
Care Network
With an eye on the changing
landscape of health care, we laid
the groundwork in 2012 for clinical
integration and established the
infrastructure for Phoenix Children’s
Care Network (PCCN). This is the
very first pediatric-dedicated clinically
integrated organization in the region.
PCCN is led by physicians
who are committed to providing
measurable improvements in quality
pediatric care while managing the
overall cost of care and improving
reimbursement opportunities.
The alignment of community
pediatricians, subspecialists and
Phoenix Children’s Hospital also
will contribute to improved
population health.
page 11
page 12
FOUNDATION // Phoenix Children’s Hospital 2012 Behind many of the year’s most noteworthy achievements were friends and partners
who understand the significance of what we do, and share in our desire to provide
only the best care for our patients. It was a year where the spirit of our community was
celebrated, and the power of philanthropy was demonstrated throughout our Hospital.
In 2012, gifts of extraordinary impact to the Phoenix Children’s Hospital Foundation totaled $35.7 Million.
The Child Life Zone
Pediatric Down Syndrome Clinic
The Child Life Zone
A generous gift made by
officially opened
the Board of Visitors, as well
on November 9,
as donations from private
2012 thanks to
individuals, made Phoenix
the generosity of
Children’s home to the state’s
Garth Brooks, Troy
first multidisciplinary and
Aikman, and their
comprehensive Pediatric
Teammates for
Down Syndrome Clinic.
Kids Foundation, which funded construction costs and
additional support for the first three years of operation.
Kitchell and its subcontractors also donated their
PetSmart Paws Can Heal
resources to this invaluable addition to our Hospital.
Herbert J. Louis, MD Motion Analysis Center
More than 40 dogs are part of our animal-assisted therapy
program. In 2012, PetSmart made a generous commitment
to keep them roaming our halls with a $425,000 gift to
underwrite the program–now officially called PetSmart
Phoenix Children’s will open the Herbert J. Louis, MD
Motion Analysis Center and the Bubba Watson and PING
Golf Gait Lab in 2014 thanks to generous gifts made by
Dr. Louis and his wife, Julie, pro golfer Bubba Watson and
PING Golf.
Paws Can Heal.
page 13
FOUNDATION // Phoenix Children’s Hospital 2012 The Center for Cancer and Blood Disorders
The Sioles Family Foundation
Two beautiful children
Honoring their commitment to serve the families
who lost their lives to
of Phoenix Children’s Hospital, the Sioles Family
cancer were honored by
Foundation dedicated the seventh floor family lounge in
their families in 2012
honor of Harriet Z. Sioles.
with legacy gifts to
the Center for Cancer
and Blood Disorders
that will impact other children battling the disease for
years to come. Cami and Jeff King dedicated The Jaydie
Lynn King NeuroOncology Center
Ignite Hope
in honor of their
The first Ignite Hope was
daughter, Jaydie
held in 2012–a candlelight
Lynn. McKenzie
walk that culminated
was honored by her
in front of the Hospital,
parents, Richard
and Denise Monks, with the naming of the Kenzie Center.
where patients watched
the celebration from their rooms. More than $15,000 in
toys were placed under the holiday tree that night, with
KTAR Give-A-Thon
2012 was another record-breaking
year for the KTAR Give-A-Thon.
Broadcasting live from Phoenix
Children’s, News-Talk 92.3
and Arizona Sports 620 raised
$1,061,601 in support of our
patients and families.
19th Annual Beach Ball
Guests were transported to St.
Barts during the 19th Annual
Beach Ball. The $850,000 raised
that night benefited The Need
is Now campaign to build a
new Emergency Department
and Trauma Center. The doctors from Pediatric Surgeons
of Phoenix were honored during the event for their
collective leadership level gift made to the campaign.
another $45,000 raised in donations.
Through our annual We Got
HEART! employee giving
campaign, the staff of Phoenix
Children’s contributed more than
$527,000 to the Hospital in 2012.
The Leadership Circle
In all, the 226 members
of Leadership Circle
collectively contributed
$434,492–a number that
more than doubled the
amount donated in 2010.
page 14
TECHNOLOGY // Phoenix Children’s Hospital 2012 Much of health care is dependent upon technology. Phoenix Children’s has
begun the transformation to an information-centric organization with a goal
to create exponential progress, implementing new technology rapidly, with
minimal disruptions.
Phoenix Children’s Information Technology Department addressed a number of issues in 2012, building
technology infrastructure to benefit physicians, patients and the community.
Pediatric Dose Range Checking
The Phoenix Children’s Pediatric Dose Range
Checking Safety Alert has garnered national and
international recognition. With approximately 1,200
prescriptions on its formulary—given the wide range
in patient body mass, age, and other factors­—a formula
entered into the Electronic Medical Record (EMR)
system could generate an excessive variety of alerts.
With a goal to make these alerts less frequent
but more meaningful, the IT team began evaluating
records from more than 750,000 orders over an
eleven-year period and wrote individual medical alert
modules for the EMR, a type of artificial intelligence
code, to create more specific dosing alerts. This
innovative use of technology optimized the
pharmacy order entry process and ensured that
hard alerts occurred when they were critical to
preventing an adverse event. To date, there has not
been a single prescription overdose error since the
program’s inception.
Preventing IV Infiltration
IV infiltration is a complication of treatment
that can result in pain, rash or even tissue damage
requiring surgical repair. At Phoenix Children’s,
approximately 200 patients are on an IV daily and
face a risk for IV infiltration. In a collaborative effort
by IT and nursing staff, knowledge-based charting
electronically monitors and documents a patient’s
status on a host of clinical measures, including the
health of their IV site.
Employing historical data in the EMR system,
the team initiated a real-time surveillance program
to capture at-risk patients. The system automatically
generates a message based on cumulative patient
data to text the IV specialists to consult with
the nurses on the status of the patient’s IV and
page 15
TECHNOLOGY // Phoenix Children’s Hospital 2012 determine if a new line placement is required.
Phoenix Children’s has seen a significant
decrease in incidences of IV infiltration, particularly
in certain units where this complication was more
likely to arise. The result? Increased patient comfort,
and potentially decreased expensive and avoidable
interventions to correct infiltration.
Smart Pumps
We made a major investment in new infusion
technology—smart infusion pumps that regulate the
rate, dosage, timing, and other factors associated
with intravenous therapies requiring infusion (e.g.
chemotherapy). Pediatric patients present additional
difficulties given dramatic variances in body mass.
Precise administration of medications is often lifesaving, requiring very specific titration and delivery
that only an automated system can deliver.
The team used data from the electronic
medical record to develop a dashboard that identifies
high risk medications, sets safety limits, and
provides a clear and safe check within the system
to ensure that the proper medication dose is being
administered with the new pumps. In addition, using
RFID tagging, the pumps are tracked electronically
from initial use through replenishment, further
ensuring patient safety.
Electronic Medical Record
Phoenix Children’s worked toward full
implementation of an Electronic Medical Record
(EMR) system in 2012, as mandated by federal law.
But that’s not the only reason we’re making the
switch. An EMR system just makes sense. It gathers
and reports valuable information that improves
operational efficiency, increases safety, and quality
for the patient and allows for better care that
costs less.
• Real-time hospital data collected in our EMR will
help us analyze wait times and patient volume
so we can staff appropriately, flexing up or down
as conditions change. Since labor is our primary
cost factor, managing it effectively by optimizing
scheduling is especially important for a non-profit
organization like Phoenix Children’s.
• Transferring from paper-based charting to an online
digital system has the added benefit of improving
quality control, with built-in checks that ensure
correct diagnosis and treatment.
• Accurate clinical documentation from our EMR
system will help us comply with Meaningful Use
attestation and payment provisions in the new
federal mandates.
• Improved communication with primary care
physicians helps us understand referral patterns so
we can better plan and anticipate patient needs.
• Better technology tracks trends over time and gives
us an accurate assessment of the current picture so
we can streamline our business processes and make
better purchasing and HR decisions.
An EMR is a significant investment in efficiency and
improved patient outcomes throughout the
continuum of care.
page 16
COMMUNITY // Phoenix Children’s Hospital 2012
At Phoenix Children’s Hospital we’ve made a commitment to improving the
health and lives of all children in our community—not just the ones we see as
patients. We’re working to improve the overall wellbeing of the children
of Arizona.
We have implemented unique programs that
directly to at-risk neighborhoods where homeless
have been successful in promoting exercise and
children, adolescents and young adults are known to
nutrition, and making homes safer. We’re working to
prevent child abuse, and helping parents understand
child development.
contained mobile asthma clinic that travels to
Injury Prevention Programs are critical. Our
Phoenix Children’s Breathmobile is a self-
inner-city schools, where air quality is often poor
state ranks 38th in deaths for children ages one to 14,
and patients have little or no health insurance, to
and 37th in teen deaths due to injury.
provide asthma identification, teaching, treatment,
Water Watchers promotes water safety
and follow-up.
awareness and drowning prevention through
The Kids Rock Stars Program promotes better
schools and community organizations. We live
health through nutrition and exercise, encouraging
in a state where more than 20 children die of
kids to be active at least 60 minutes a day. The
drowning each year.
program is part of Kohl’s Healthy Kids and Families,
and is available online and in select schools.
Crews’n Healthmobiles are Mobile Medical
Units that bring free, comprehensive medical help
Kids Ride Safe is a public
advocacy and education program
that promotes child passenger
safety in automobiles. In 2012,
Phoenix Children’s sponsored new
booster seat legislation, which was signed into law. The
correct use of booster seats can reduce the risk of injury in
a crash by 59 percent. To educate families about the new
law, Phoenix Children’s created a Car Seat Helper mobile
app that assists parents and caregivers in choosing the
right seat for their child.
5,000 1
page 17
THE FUTURE // Phoenix Children’s Hospital 2012 A BRIGHTER FUTURE
In 2013, Phoenix Children’s Hospital will
serve the needs of our region’s growing population.
celebrate its 30th birthday. Like the world around us,
we are practically unrecognizable from the fledgling
quality care and patient safety, so parents know they
institution we were when we first opened within
will receive the best care at Phoenix Children’s, and
Good Samaritan Hospital in 1983. Back then, the
our patients will go on to live the lives they dreamed.
hope of being among the nation’s best children’s
We will work to continually improve our
We will contribute significant knowledge
hospitals was just that: a hope.
in pediatric care with new research studies and
leading clinical trials of new treatment and
Today that hope has become a reality many
times over, not just for us,
diagnostic methods. We will
but for the children and
continue to provide advanced
families we serve.
training in pediatrics and
pediatric subspecialties so
And we have good
reason to expect great
that as our community grows,
things of ourselves in
the supply of well-trained
the years ahead. Phoenix
physicians is sufficient for the
Children’s Hospital has
need. And we will be known
changed the landscape of
as an effective advocate for
pediatric medicine in our
Arizona’s children.
state, and we’ve cast a bold
vision for the future.
We will become the premier regional
It won’t be easy. The
politics surrounding health
© Desert Ridge Photography / Jamelle Kelly
care largely ignore the needs of children. We will
pediatric center in the Southwest, nationally
continue to fight, so our patients today and those
recognized as one of the best for pediatric care,
who come to us in the future have a voice at the
providing a full range of services solely dedicated to
highest levels of state and federal government.
From our vantage point, the future doesn’t just look
We will continue to grow, adding programs,
satellite centers, physicians and staff, so we can
And we will be here, today and every day.
bright; it’s boundless.
page 18
FINANCIALS AND STATS // Phoenix Children’s Hospital 2012
As our economy makes its slow recovery from the 2008 recession, Phoenix Children’s
continued key management initiatives to mitigate the impact and ensure we retained
the resources needed to continue serving the needs of our patients and families.
We took several important steps to manage expenses, reinforce financial reserves,
increase revenues, and restore cash on hand in 2012.
Our Financial Health
Strong Cost Controls
Revenue Cycle Improvements
Managing costs has always been a prime focus for
We began evaluating our Revenue Cycle in 2010, with
Phoenix Children’s, but became an even greater focus
implementation in 2011. By 2012, we could measure more
with the financial challenges of the past several years.
than $20 million in improvements recorded in 2011 alone.
This focus is working; Phoenix Children’s sits below the
Improvements have come from:
national Children’s Hospital Association average on two
key indicators:
Clinical documentation:
short pay
review program:
(financial counseling):
• Overall operating cost per adjusted patient day is 16.5%
below CHA average in 2011 ($3,601 v. $4,312).
• Full Time Employees (FTEs) per adjusted occupied bed
is 15% below CHA average in 2011.
ED and urgent care coding:
This is especially impressive given the FTEs and
Patient Access Redesign:
other operating costs required by the build up for the new
tower and market consolidation with Dignity Health
in 2011.
Safety Net Care Pool (SNCP)
Access to Care Ordinance
leadership reached out to Arizona executive and legislative
Phoenix Children’s, in coordination with the
As the Arizona economy declined, Phoenix Children’s
Children’s Action Alliance and other child health
leadership to effectively create a “partnership” between
advocates, successfully lobbied the Phoenix City Council
the Hospital and the state. As a result, legislation passed
to pass the Access to Care Ordinance, which will generate
in 2010 (HB 2116) and in 2011 (SB1357) that enabled other
more than $200 million in federal funding to pay for
public entities to be considered as sourcing entities for
uncompensated medical care for the uninsured through
public match as part of an intergovernmental transfer
programs like KidsCare.
page 19
FINANCIALS AND STATS // Phoenix Children’s Hospital 2012 Thus, Phoenix Children’s led the creation of the
Safety Net Care Pool (SNCP) AHCCCS funding of $110
million. This funding allowed the state to expand statewide
KidsCare enrollment in 2012 by 20,000. Governor Brewer
hailed this as “a creative solution to the funding crisis”
Select Financial Summary
Summary Income Statement
Net Operating Revenue
$502,388 $668,685
Operating Expenses
$509,105 $640,551
and complimented Phoenix Children’s and the other
participating safety net hospitals for developing and
Income from Operations providing the funding for an affordable and sustainable
Income from Operations as %
solution to the health care crisis.
EBIDA (Earnings Before Interest, Depreciation and Amortization)$40,287 $84,191
EBIDA as % of Revenue
Financing Achievements
• Successfully refinanced $225 million in bonds with
Employee Compensation and Benefits
long-term fixed rate bonds at the lowest BBB+ rates at the
$265,856 $304,566
time, providing a stable long-term debt base structure.
• Achieved a BBB+ rating with a stable outlook from S&P.
• Increased cash at the end of the year to pre-tower
construction levels.
• Entered into the Dignity Health/Premier group
purchasing agreement and implemented conversions
with annual savings of $2.5 million.
Fundraising Revenue
Our fiscal strength is directly related to our ability
to carry out our vision to offer the most comprehensive
pediatric care services in the Southwest. With these and
other developments, Phoenix Children’s can continue to
implement changes that improve clinical quality, patient
safety, and customer service, allowing us to achieve our
goal to be the very best for children.
Charity & Uncompensated Care
* Reduced by SNCP; see page 18.
FTEs and Employees
F U L L T I M E e q ui v alents
Complete financial report available at
Board of Directors
Board of Directors
Mark Bonsall
Chairman of the Board
General Manager, Salt River Project
Brian Swartz
Chairman of the Foundation Board
Phoenix Children’s Hospital
Jon Hulburd
Vice Chairman
Community Volunteer
Sheila Zuieback
Board Secretary
Trustee, Halle Family Foundation
David Cavazos
Immediate Past Chairman
City Manager, City of Phoenix
Robert L. Meyer
President and Chief Executive Officer
Phoenix Children’s Hospital
Robert L. Meyer
President and Chief Executive Officer
Phoenix Children’s Hospital
Steven S. Schnall
Senior Vice President
Chief Development Officer
Phoenix Children’s Hospital Foundation
Randal Christensen, MD
Vice President
Phoenix Children’s Medical Staff
Robert M. Delgado
President and Chief Executive Officer
Hensley Beverage Company
Mark DeMichele
Community Volunteer
Ken Kendrick
Managing General Partner
Arizona Diamondbacks
David Lenhardt
Chief Executive Officer
Taylor Burke
Rainy Partners
Larry Clemmensen
Community Volunteer
Greg Kruzel
Braun Siler Kruzel PC
Rick Kuhle
Vestar Development
Herbert J. Louis, MD
Director Emertus
Connie Mariano, MD, FACP
Center Executive Medicine
Mark Love
President and Chief Executive Officer
LKL Partners, LLC
Ronald A. Matricaria
Community Volunteer
Founder of the Ronald A. Matricaria
Institute of Molecular Medicine
Manny Molina
Molina Media Group
Jeffrey P. Morray, MD
Phoenix Children’s Medical Staff
Jacque J. Sokolov, MD
Chairman and Senior Partner
SSB Solutions
Brian Swartz
Chairman of the Foundation Board
Phoenix Children’s Hospital
Jonathan Pinkus
President and Chief Executive Officer
Arizona Nutritional Supplements
Frank Placenti
Senior Partner
Squire, Sanders & Dempsey
Dave Ralston
Chairman and Chief Executive Officer
Bank of Arizona
Scott Rehorn
Red Development, LLC
David Watson
Revolution Tea
© Desert Ridge Photography / Allen Ayers
© Desert Ridge Photography / Chris Barr
© Desert Ridge Photography / Jamelle Kelly