NHS Human Services - Annual Report 2013

LETTER FROM KEVIN McCLURE

Chief Financial Officer

Fiscal year 2013 was an exciting year for NHS in many ways, and finance was certainly one of them. Operating revenues for the fiscal year were $493 million. While this total is slightly lower than the previous year due to payer contraction of certain services, it does include continued growth of NHS services, particularly outside of its Pennsylvania home base. Growth of services in Louisiana, New Jersey, and Delaware continue to expand the NHS footprint.

Successful results from operations and continued positive cash flows have allowed NHS to have the financial resources available to near completion of its rollout of its electronic health record, and to begin the conversion to a comprehensive outsourced model for human resources, payroll, benefits, leave management, and learning management. We also continue to work on expanding the scope of an automated workflow system to reduce paper documents in many administrative processes.

These investments in technology will allow NHS to continue to lead the way in providing quality services to our consumers and to efficiently operate our HR and Payroll systems that provide services for more than 10,000 employees. NHS also successfully completed three financing transactions during FY2013, and we are closing on three additional transactions during the first half of FY2014 that will solidify the debt portfolio of NHS for several years to come. This financial stability allows NHS to focus on our mission to provide quality services to the most vulnerable lives that are in our care.

Sincerely,