Welcome to the 2012 Annual Report, which provides key highlights of the countless achievements of our team of Physicians, Nurses, Staff, Volunteers and Board Members. This year's report focuses on the Sparrow Way, our Caregivers' commitment to ensuring care delivered at Sparrow adheres to Patient-centered, evidence-based best practices.

The Sparrow Way is helping us play a leading role in fundamentally transforming the way care is provided, addressing the challenges of increasing prevalence of chronic disease and an aging population, and improving the quality of care and the Patient experience while also ensuring greater value and affordability.

To learn from the nation's best, we have visited nationally recognized organizations such as Mayo Clinic, the Cleveland Clinic, Geisinger Clinic, Virginia Mason, and others. By doing so, we have gathered insights to aid us in achieving our safety, quality, satisfaction and value aspirations.

Our Patient-centered, evidence-based best practices approach to healthcare has already garnered attention and accolades from across Michigan and the U.S.

The Michigan Quality Council (MQC) awarded Sparrow Hospital the 2012 Quality Leadership Award. The recognition is the highest honor for organizational performance excellence in our state, and Sparrow is only the eighth hospital to ever earn this recognition. The MQC's Leadership Award program is modeled after the Baldrige National Quality Program criteria. We will now apply for the prestigious Baldrige National Quality Award as we continue our pursuit of organizational excellence for the benefit of our Patients.

Sparrow is also Michigan's first member of the prestigious Mayo Clinic Care Network, a formal collaboration that will help Sparrow provide the best possible care for our expanding service area. Our membership in the Mayo Clinic Care Network is based on values shared by Sparrow and Mayo related to safety, quality, the Patient experience and value. We are proud to have this arrangement with Mayo for the benefit of Patients, Physicians, Nurses, Staff and the many communities which count on us 24/7/365.

In another recent distinction, Sparrow was ranked first for technology innovation in the healthcare industry nationwide and 16th among all U.S. companies in the 2012 InformationWeek 500. This award recognizes our commitment to use innovative and cost-effective technology to deliver the best care possible for our Patients. Sparrow has also earned the nation's most prestigious honor for nursing achievement and excellence—recognition as a Magnet Hospital by the American Nurses Credentialing Center. Considered the "gold standard" for nursing care in hospitals, Magnet status is held by only about 6 percent of hospitals nationwide.

We are also seeking new ways to partner with quality care providers in and around our region to ensure that care is always delivered in quality clinical settings as close to the Patient's home as possible. New collaborations have been formed with Hayes Green Beach Memorial Hospital in Charlotte and Mary Free Bed Rehabilitation Hospital in Grand Rapids. We also launched the Center for Innovation, a major joint initiative with Michigan State University that will focus on research intended to transform care delivery.

Our relentless dedication to quality will continue to be a focus in 2012 and beyond as we strive to provide Radical Loving Care to every Patient... every time.

Dennis A. Swan
President and CEO