Hospital Earns S.C. Governor’s Quality Award

GREENWOOD, SC – November 22, 2010 – Self Regional Healthcare has received the state’s highest award for quality, earning the South Carolina Governor’s Quality Award.

The award recognizes organizations for their progress toward achieving the standards for the Malcolm Baldrige National Quality Award, which is the only formal recognition of performance excellence given by the President of the United States to both public and private organizations. It recognizes performance excellence in the business, healthcare, education and nonprofit sectors.

Jim Pfeffier, President and CEO of Self Regional, said earning the South Carolina Governor’s Award substantiates the claim that patients come first at the Greenwood medical center.

“Five years ago, Self Regional made the commitment to take the level of care we deliver to our patients to the next level,” he said. “This journey to excellence has been both exciting and rewarding, and we consider our organization earning the Governor’s Quality Award to be a monumental achievement.”

“Self Regional’s quest for quality has helped lead to success in numerous other areas for our medical center, including global recognition by the Gallup Organization as one of the world’s top workplaces,” Pfeiffer added. “It is important to note the real winners in this are our patients, for quality and safety are especially important when it comes to addressing the health needs of others. Winning this Governor’s Quality Award would not have happened without the commitment and hard work of our 2,300 team members, physicians and volunteers. I applaud each of them for their efforts.”

The award is presented under the auspices of the South Carolina Quality Forum, an affiliate of the South Carolina Chamber of Commerce. The forum was organized in 1991 to recognize and encourage improvements in quality and productivity by organizations across the state.

“I am elated to learn of Self Regional Healthcare winning the South Carolina Governor’s Quality Award,” said Sen. Floyd Nicholson (D-Greenwood). “I think this speaks very highly of the quality of healthcare Self Regional provides here not only for our community, but also for the surrounding area. It is a milestone and something in which our entire area can take pride. Healthcare is one of the top issues not just in our community, but also in our nation and the world. This goes to show how important it is that Self Regional recognizes the importance of good, quality healthcare.”

The award also reflects the strong financial performance of Self Regional, which recently saw its long-term rating and underlying rating improve from “A” to “A+” under Standard & Poor’s Ratings Services. The rating applies to Greenwood County’s $157.6 million series 2009, 2004A, 2004B, 2001 and 1998A bonds, all issued for Self Regional Healthcare.

The strong financial ratings reflect Self Regional’s dominant market share, overall balance strength and solid financial results for the 2010 fiscal year that ended Sept. 30. Hospital management has successfully positioned Self Regional as a regional referral center in recent years and also completed several major capital projects that have lowered the average age of the hospital plant.

Specifics that helped lead to the improved financial ratings include:

• Solid pro forma cash flow coverage of maximum annual debt service (MADS) of more than six times
• Favorable liquidity metrics of 285 days’ cash on hand and 1.6 times unrestricted cash and investments to long-term debt
• A solid market share of more than 90 percent in Greenwood County and 43 percent in the primary seven-county service area
• A solid reputation for clinical achievement and quality, as well as a capable and experienced management team
• Capital investments which give the hospital plant a relatively young average age, equal to just over nine years

A delegation of Self Regional team members accepted the award at the South Carolina Quality Forum’s annual conference held recently in Columbia. Over the previous three years, the hospital also earned the Quality Forum’s Silver Award twice and the Explorer Award once.