Annual Report

Fiscal Year 2012

Like most continuing care retirement commu-
nities, John Knox Village faces challenges brought
on by the economy: rising operational costs, hard-
to-secure financing, declining real estate values,
fluctuating markets and more.
However, rather than biding its time until the
economy rebounds, the entire Village organization
has been examining where its been and where it
wants to go. The newreality is that the steps the Village
took to become a leading retirement community in
the nation wont keep it on the path of success.
Thats why Village leaders have strategized and
plotted alternate paths that will help the organization
navigate the rocky terrain of the new economy.
Guided by this new plan, the Village spent fiscal
year 2012 (April 1, 2011, to March 31, 2012) imple-
menting strategies to increase revenues, decrease
expenses and increase efficiency.
By taking steps to overcome the obstacles created
by the changing economy, as well as newhealthcare
legislation, the Village is forging new paths to enrich
lives and build community for years to come.
About John Knox Village
One of the largest and most comprehensive
continuing care retirement communities in the
nation, John Knox Village has been enriching
the lives of older adults for more than 40 years.
The Village offers a variety of lifestyle opportunities
in independent living, residential care and skilled
nursing, as well as an abundance of services and
amenities, and long-term healthcare options on
its 400-plus acre campus in Lees Summit, Mo.
Whats more, the Village also provides home care
services to patients who live throughout the
Kansas City metropolitan area in both Missouri and
Kansas.
Mission: To enrich the lives of older
adults through community living.
George Pagels, MD,
Chairman, JKV
Board of Directors
The changing economy
has provided challenges
for most companies, re-
gardless of the industry
that they serve. John
Knox Village is no different. But there is some-
thing that does set it apart from other organi-
zations the dedicated individuals who make
up the Village community. The information
included in this report is just the tip of the
iceberg in terms of all that the Village has been
able to accomplish during the 12 months of
fiscal year 2012. From expanding services to
working to close the budget deficit, the Village
has worked hard to remain on the path of
success. But whats more impressive are the
steps that have been taken to help the organi-
zation continue to achieve its mission well in to
the future.
Forging New Paths
How John Knox Village found its
footing when faced with the
challenges of a new economy
2
Letter from Dan
My son, Phil, and I recently
journeyed to the summit
of Mount Kilimanjaro, the
highest freestanding moun-
tain in the world. Although
the eight-day journey was
extremely difficult rain,
sleet, hail, bitter cold
and dangerously thin air
were a few of the obstacles we experienced
we both made it.
But our journey wasnt all difficulties.
I had a great week with my son, and I also acquired life
lessons that can be applied to the Villages current operations, espe-
cially as we work to overcome the challenges brought on by the changing economy.
Lesson 1. Always be preparing. You must always be ready to implement Plan B, no matter how
good Plan A may be.
Lesson 2. Follow your guide. You must have the wisdom and ability to trust your guide and your compass.
Lesson 3. Persevere. You must always keep going.
John Knox Village is a strong and solvent organization. Unfortunately, volatility in the housing and invest-
ment markets has created operational challenges that have led to financial deficits. Challenged by our board
of directors to close the gap between revenues and expenses, management took an in-depth look at the Villages
operations. Plans focused on increasing revenues, decreasing expenses and increasing efficiency. Actions
focused on the expansion of health care services, a handful of staff reassignments, the elimination of some
services and the addition of new services that are in line with the wants and needs of our residents.
I am confident our hard work will sustain our solvency so that we can continue providing high quality care
and services to the seniors of today and tomorrow. But to remain a leading retirement community, we also
must follow the lead of our residents, clients and associates. Thats why we use satisfaction survey results, as
well as the strong relationships we have forged with many members of the Village community, to guide our
decisions. These people are our compass without their helpful direction, we could lose our way.
While careful planning and conservative strategic growth have built the financial reserves needed to ride
out hard times, our ability to come together as a single, unified community sets us apart. The power to perse-
vere allows us to continue to care for older adults both on our campus and throughout the Kansas City metro-
politan area. Guided by the expectations and desires of our community members, we follow an ever-flexible
strategic plan that will lead us into the future. And, like Phil and I as we trekked to the top of Kilimanjaro, the
Village perseveres.
3
Daniel Rexroth
President and CEO,
John Knox Village
An increase in demand for specialized health care services
that are provided by a limited number of organizations in the
Lees Summit area influenced John Knox Villages decision to
expand its Valley View Memory Care services as well as Village
House inpatient hospice care.
By adding second hallways of apartments and patient
rooms for each service, the Village is able to offer dedicated
care to greater numbers of people. In turn, these ventures
will contribute to the Villages bottom line by growing existing
revenues.
As exciting as growth can be, sometimes difficult deci-
sions also have to be made. In order to create space for the
memory care expansion, the Village closed its on-campus
child development center. Much effort was made to find
an alternate location for the center, but in the end, several
constraints couldnt be overcome. On the other hand, the
Village will be able to better live out its mission of serving
older adults because of the expansion.
Valley View Memory Care
Addition
.Located at Valley View.
.The first hallway has had an extensive waiting list
of individuals wanting to move in since it
opened in 2006.
.The 17 additional apartments bring the
number of memory care residences to 39.
.The look and feel of the expansion is a reflection
of the original unit and its home-like amenities.
.Residents began moving in early in FY13.
.Annual revenues are projected to be about $1 million.
Village House Addition
.Located at the Village Care Center.
.The new service offering fulfills a need for inpatient
hospice-centered care for people who live east
of Kansas City.
.The eight additional patient suites brings the total
number of rooms to 18.
.The second unit has a family room
and private entrance for patients and loved ones.
.Patients were admitted starting in late FY12.
.Annual revenues are projected at about $1.5 million.
Expansions to
Provide Specialized
Care to More People
4
While many organizations provide memory care services,
few, if any, have created an organization-wide program until
now. Village associates from independent living, Valley View,
Village Care Center and Community Health Services, are
working together to create a memory care program that
extends across the continuum of care. In addition to the
Villages current offerings at Valley View, the Village Care
Trailblazers
Taking steps to expand the
memory continuum
5
Center and Village Hospice, programs are being developed for
individuals who live in independent living. Whats more, the
Village Care Center Memory Care unit is unveiling a new look
in fiscal year 2013. The redesigned area will mirror the look
of Valley View Memory Care to create consistency in care
and environment that is so important for individuals with
memory impairments as they move through the continuum.
Pictured above from left to right: Jackie Byers,
Valley View Memory Care coordinator; Heather Scott,
Valley View administrator; Meda Hernandez, manager of
clinical services; and David Mercier, Village Care Center
administrator.
Village Home Health staff are
always on the move as they care
for patients in nine counties in
Missouri and Kansas. But staff
went one step further when they
moved the office from Lansing,
Kan., to its new location in Over-
land Park, Kan.
The centrally-located office space
is larger and allows Village Home
Health room for growth. It also pro-
vides the service, which cares for
patients in the Kansas counties of
Wyandotte, Johnson and Leaven-
worth, a more visible presence in
growing, robust communities, said
Kim Blazevic, director of the Village
Home Health Kansas office.
Skyrocketing maintenance costs
+ declining usage = service addition?
It all adds up.
A restructuring of the John Knox
Village transportation program, which
included the elimination of the fee-for-
service (sedan) transportation program,
created efficiencies that will make a
difference to the entire Village community.
During the restructuring process,
the decision was made to alter the
grocery bus schedule so the Village
also could provide residents with free,
twice-weekly transportation to local
health care providers.
The changes also enable the Village
to reallocate funds to better maintain
the other vehicles in its fleet, including
buses, ambulances and security vehicles.
Additional savings of about $88,000,
which would have been used to
purchase new vehicles to replace the
high mileage sedans, will be used for
capital needs in other areas of the
Village.
Village Home
Health on
the Move
in Kansas
Transportation Reorganization
Leads to New Service Addition
Using energy conservation, recycling,
waste management and other green
methods, John Knox Village continues to
implement earth-friendly programs that
have helped it become a more sustain-
able organization as well as boost its
bottom line. The following are only a
few examples of how the Village is
working to reduce its environmental
impact today to make a difference for
tomorrow.
Energy-efficient Lighting: Nearly
900 light bulbs are being replaced with
LED bulbs in the Village Care Center,
resulting in estimated savings of
185,000 kilowatt hours a year. Next, the
Village will replace the 340 street light
bulbs. Because the lifespan of the new
bulbs is roughly 5 years, the number of
hours staff spends changing out bulbs
will decline significantly.
Energy-efficient Equipment: The
Village replaced aging equipment with
energy-efficient air source heat pumps
at the Village Care Center as well as the
heating, ventilation and air conditioning
units in the Courtyard Complex and
the walkway between the Courtyard
Complex and The Pavilion. Using the
energy-efficient equipment both saves
money and enables the Village to capture
rebates for additional savings.
Recycling Update: The Village has
saved more than $30,000 with its recy-
cling program since June 2009. The
savings come from taking fewer loads of
trash to the landfill and from payments the
Village received for the recyclables
collected in bins around campus.
Saving the Planet One
Light Bulb at a Time
6
7
In recent years, John Knox Village has been on a green
mission: to increase sustainability, decrease energy usage and
decrease its utility bills. Many of its efforts, a few of which
are summarized on the previous page, are headed up by a
group of associates from operations, including (pictured from
left to right) Randy Thate, master electrician; Jeff Hobbs,
manager of maintenance; Greg Maxon, maintenance lead;
Brian Petersen, director of operations and development; Les
Wilkes, maintenance lead; Mike Shipps, maintenance lead; and
Mitch Billingsley (not pictured), technical lead.
This past fiscal year, the Village added to its sustainability
achievements by installing 648 solar panels on the roofs of
the Courtyard apartment buildings, Valley View and the Village
Care Center. Together, the panels, which make up one of the
largest fields of solar panels in the state of Missouri, will
produce about 180,000 kilowatt hours per year. The panels
will be a sort of insurance policy for the Village: after deducting
the cost of equipment rental, the Village will gain a modest
savings of about $1,800 for the first year of usage. That savings
will only grow as electricity rates increase. Using the solar
panels is about more than just the cost savings, according to
Brian Petersen, director of operations and development. We
are doing right by the planet, he said.
Trailblazers
JKVs sustainability efforts aided by
installing states largest solar system
8
John Knox Villages earliest residents dubbed them-
selves Pioneers and for good reason these trailblazers
provided insightful feedback that helped create a strong
foundation for the current organization. Today, Village leaders
continue to look to residents, as well as their loved ones, for
guidance and direction, most notably through resident satis-
faction surveys.
The most recent surveys were conducted throughout the
continuum in spring 2011. Independent living residents, as
well as the residents and loved ones of Valley View and
Village Care Center residents, rated and gave their opinions
on a number of topics. The outcomes showed an increase in
the number of Excellent and Good ratings and a decline
in the amount of Average, Poor and Really Poor ratings
when compared to previous assessments.
The survey results act as a guide, giving the Village a to-
do list. For example, the Village is making plans to update the
common areas of the Villager Complex based on the feedback.
In addition, it has installed additional lighting outside The
Pavilion, updated the 18 laundry rooms in the apartment buildings
and revamped the menu offerings and service at the Lakeside
Grille in the Country Club complex. These and other initiatives
have been well received by residents.
Using its satisfaction survey results as its guide, Valley
View expanded its staff, hiring additional caregivers so that
it now has a licensed nurse on duty 24 hours a day, 7 days a
week. The residential care provider also revised the way it
welcomes new residents and helps them adjust to their new
homes.
Across campus at the skilled nursing center, the
Village Care Center launched a new in-house TV station,
VCCtv Channel 19, as a result of its survey. The channel,
which is broadcast throughout the Village campus,
includes photos, videos, listings of daily activities and the
daily menus to supplement communication. The new channel
enables all members of the Village community to catch a
glimpse of daily life at the Care Center.
Residents Set the Organizations Direction
Its always important to stay in touch with patients opin-
ions and perceptions, and its essential also to measure the
quality of the work that is performed, which is why
Village Home Health and Village Hospice regularly
survey their patients.
Some of the home health quality of care information
is gathered by the Centers for Medicare and Medicaid
Services (CMS) as part of the requirements for partici-
pating in their program. CMS uses it to measure out-
comes and to report to the public via the Home Health
Compare website about the services provided by home
health agencies across the nation. They look at factors
like how well the care providers do at reducing patient
re-hospitalizations, managing patient medications,
managing pain and educating patients so they can
better take care of themselves.
The Villages Community Health Services group
uses this data, in addition to surveys they conduct
about Village Hospice services, as compasses to
guide their decision-making and continuous quality
improvement efforts. With major changes in the
works for how health care services are managed
and regulated, the group has been examining
internal processes and has made moves that will
help them become even more efficient and
effective. To facilitate this, they upgraded to new
computer software to manage patient care and documentation
and moved the Kansas office to a high-density area with a
greater concentration of potential patients.
Julie Mahony, administrator of Community Health Services,
said efficiency and quality of care, as well as creating new
ways to work closely with hospitals and other referral sources,
will be the keys to continued success. But our success cant
just be measured by the data, she said. Its also about how
our patients and families perceive our services. How do they
feel about the care we provided? It may have been clinically
correct, but it also needs to feel like a caring and satisfying
experience to the people we serve. Thats when we know
were truly providing excellent, quality care.
Surveying the
Path to Home
Care Excellence
9
Village Residents
Lead the Way
For the first time in a
more than two decades,
John Knox Village has a new
chief financial officer.
Richard Kim Klockenga
has joined the Village as the
vice president of finance. He
is replacing long-time Village
leader Jim Franklin, who re-
tired early in fiscal year 2013.
Kim has a proven track
record for enhancing profit
and revenue growth and has an intimate understanding
of the continuing care environment, said Dan Rexroth,
John Knox Village president and CEO. Were confident
in his ability to ensure the long-term financial strength of
John Knox Village.
As chief financial officer, he oversees myriad compli-
cated financial transactions, including management of the
Villages cash flow, Medicare billing, capital needs
and oversight of the accounting, risk
management and materials management
departments.
Klockenga is a seasoned executive
with nearly 15 years of senior healthcare
leadership experience. Prior to joining the
Village, he was vice president and CFO of
Friendship Senior Options of Schaumberg in
Schaumberg, Ill., where he led the financial
and information technology functions for the
organizations parent facility and four sub-
sidiaries. He also was with Woodstock
Christian Life Services in Woodstock, Ill., and
Motorola, Inc. Klockenga earned a masters
degree in business administration at Lake
Forest Graduate University and a bachelors
degree in accounting at Kent State University.
John Knox Village
Welcomes New
VP of Finance
10
John Knox Village residents are becoming more
involved in the planning and organization of celebrations,
clubs, special interest groups, entertainment and more. In
addition to aiding the Village in fulfilling its mission of
enriching lives, building community, these creative and
enterprising individuals are creating opportunities for neigh-
bors to connect and together experience laughter, enlight-
enment, culture and more. The events, as well as the people
involved in them, are diverse and varied.
Members of the JKV Community Theatre spend months
planning and rehearsing for their twice-a-year performances.
A committee of residents and associates put in hundreds of
man hours to organize St. Patricks and Independence Day
parades and celebrations. Other examples of resident-led
activities include weekly games, such as dominoes, bingo
and bridge; weekly movies; outreach and prayer groups;
music education classes; and musical performances just
to name a few. Whats more, the efforts of these special
volunteers aid the staff of the Resident Life group as they
work to create special events and other activities for Village
residents.
Trailblazers
Resident Council guides the Village
toward the right path
The purpose of the John Knox Village Resident Council
is multifaceted, yet straightforward. It provides a channel of
communication between Village residents, staff and the
board of directors; provides for the protection and preservation
of the interests of Village residents; and supports an
effective and fair means of determining the desires of
residents with regard to the operation of the Village. The
dedicated individuals who serve as officers, committee
chairs and neighborhood representatives provide feedback
on a variety of issues that affect residents. They provide
direction to Village associates as they work to create an even
better community for all residents. Resident Council Lead-
ership Betty Johnson, vice president; June Dewsberry,
secretary; and Jo Ann Wright, president.
11
Less than 24 months after launching
an innovative and comprehensive asso-
ciate health and wellness program,
John Knox Village, with assistance
from WINS (Wellness Innovations and
Nursing Services), can boast improve-
ments to both associate health and the
bottom line.
Discouraged by associate health
cares declining coverage and increas-
ing costs (insurance carriers proposed
a 40-percent premium increase), John
Knox Village took the bull by the horns.
It decided to become self-insured, open
an on-site health and wellness clinic
and be more proactive with wellness
programming. The decision to go self-
insured was a huge gamble that would
only work if associates worked to
improve their health. The risk has paid
off. Under the new plan, medical claims
and costs are down, clinic usage is
high and the wellness programs have
experienced high participation.

Greater financial flexibility. The

annual impact of the wellness program
is about $150,000, or more than $600
per participant, according to calcula-
tions by WINS. These figures are based
on improved risk factors as well as
avoided health claims, increased pro-
ductivity and decreased absenteeism
for just the 245 associates who
enrolled in both 2011 and 2012. In addi-
tion, the cost avoidance through all
facets of the program, which includes
workers compensation and post-offer
screenings, as well as savings on
medical and prescription claims, is
estimated to be more than $1 million.
Whats even better: Health insur-
ance rates for 2012 remained the same
for associates who participated in the
wellness program.

Healthier, more active associates.

Associates who participate in the
wellness program decreased their
visits to both the emergency depart-
ments and specialists, according to
program reports. Whats even better: 87
of the repeat participants lowered their
blood sugar levels, 89 reduced their
weight, 46 maintained their weight, and
the number of people with zero risk
factors grew from 33 to 48.
Taking Steps Toward Even
Better Financial Flexibility
12
In Other
Insurance News
Fiscal year 2012 proved to be
a banner year for the Villages
general and professional liability
insurance program. As of this year,
dividends have exceeded $1 million
since 2002, not to mention the vast
amount of premium savings created
by participating in the program versus
purchasing insurance through the
commercial insurance market. The
program is overseen by the Continuing
Care Insurance Corporation (CCIC),
an organization the Village helped
to found in 2002.
13
Trailblazers
John Knox Village honored
for wellness initiatives
Employers award, taking first place
among companies with 500-999 full-
time employees. Whats even better: the
Village continues to offer free health
insurance, a free medical clinic and free
wellness programs, health screenings
and coaching for associates who
participate in managing their health.
The Village was recognized by the
Kansas City Business Journal as a 2012
winner of the Kansas Citys Healthiest
The Foundation makes gifts and grants for
facilities operated and managed by John Knox
Village, contributes to activities that support older
adults, and aids in the implementation of the
Villages strategic and long-range plans.
The Foundation oversaw the Village
House Capital Campaign, raising more than
$350,000 to transform two hallways of the
Village Care Center into a home-like facility
for hospice patients and their families.
It also funded a variety of projects and
programs for various areas of the Village.
Examples include a new ambulance; nine com-
puters and software for the resident computer
center; educational materials for Village Hospice;
purchases for the John Knox Village Chapel; equip-
ment for the Hobby Hut; and new software for
Village Hospice and Village Home Health.
The Auxiliary promotes volunteerism and
contributes funds in support of residents of John
Knox Village and the surrounding community.
The John Knox Village Auxiliary was named
the Volunteer Program of the Year by the
advocacy group LeadingAge Missouri.
Through operation of its Thrift Shop and
four on-campus convenience/gift stores, the
Auxiliary earned $345,000 in operating revenue,
and boasted a profit of $73,316.
The Auxiliary opened the Crafty Corner. The
shop is located in the General Store and features
a variety of handcrafted items created by Village
residents. About $5,000 worth of merchandise
was sold during fiscal year 2012.
The Auxiliarys notable donations to the
Village included purchasing the naming rights for
the second hallway of Village House; a pledge to
cover one-third of the cost of a new ambulance; and
about $15,000 in healthcare scholarships.
Gifts an
d Givin
g
14
The John Knox Village
Foundation
The John Knox Village
Auxiliary
John Knox Village is dedicated to achieving
its mission to enrich the lives of older adults
through community living regardless of where
they live. One notable example of how the
Village fulfills this pledge is its association with
Palestine Commons, a not-for-profit organiza-
tion that serves low-income seniors who live in
the urban core of Kansas City, Mo.
The organization has created a campus
complete with a senior activity center and three
apartment buildings, including a building that
provides enhanced support services that sets it
apart from a typical apartment complex. Most of
the money for construction of the buildings was
raised through private donations and government
sources.
Community Outreach
15
The Village first became involved with
Palestine Commons when the organization
asked John Knox Village President Dan Rexroth
to serve on its board of directors five years ago.
In addition to Dans service, the Village commu-
nity also has come together several times to
help enrich the lives of the people who live and
congregate at Palestine Commons. During the
last fiscal year, associates donated money that
helped purchase technology products for the
community as part of the John Knox Village
Foundations annual Special Project fundraising
campaign. Whats more, a group of associates
hosted a holiday party at the Palestine Commons
Senior Center, complete with a festive sing-
along, games, food and an appearance by Santa,
who handed out gifts to each resident.
John Knox Village benefits from the
talents of more than 400 dedicated individuals
who give their time to serve the Village
community. About 75 percent of the volun-
teers are Village residents; the others
are individuals who live in surrounding
communities.
The Villages volunteer opportu-
nities are as diverse and varied as the
volunteers who commit their time,
talent and passion for the betterment
of the Village. Volunteers as young as
13 and older than 100 help out in a variety
of ways: for example, handcrafting
furniture for various areas of the Village;
escorting Village Care Center residents
to doctor appointments; knitting prayer
shawls that are distributed all over the
world; offering companionship to hospice
patients and their families; and much more.
Throughout fiscal year 2012, volunteers
recorded 70,216 hours of their time to support
Volunteer Services
all areas of the Village community both on
and off campus. Every hour contributed by
these dedicated individuals only strengthens
the Villages pledge of enriching lives and
building community.
Sunday, May 22, 2011, started off as a
beautiful day. Unfortunately, the day turned
dark and tragic as storm clouds formed a
deadly tornado that struck the city of Joplin, Mo.
Within hours, emergency crews from across
the region, including a three-person team from
John Knox Village, began making their way to
Joplin. Upon their arrival, the JKV crew jumped in,
transporting injured patients to a hospital in
Arkansas, assisting with various search and rescue
efforts and, finally, relieving the Joplin-based emer-
gency services personnel who continued to work in
spite of the turmoil. In all, five Village associates
assisted in the tornado recovery efforts,
including Craig Faith, director of public
safety; Brian Opoka, manager of public
safety; April Eads, lead paramedic; Denny
Thurmon, transportation lead; and Jeff
Reynolds, emergency medical technician.
Meanwhile, back in Lees Summit, Vil-
lage residents and associates mobilized to aid
the victims from the tornado. More than
$800 in cash and goods were collected
and donated to the Salvation Armys Dis-
aster Relief Fund. The John Knox Village
Auxiliary Thrift Shop also opened its doors
to people who moved to Lees Summit
after their homes were lost during the
storm. The Auxiliary donated clothes,
furniture and other goods to help them
rebuild their lives.
A Jefferson Healthcare employee
(pictured right) picks out items for
displaced Joplin residents who moved to
Lees Summit. Neighbors helping neigh-
bors isnt that what enriching lives and
building community is all about? 16
Building
Community
The Village unites to aid
Joplin tornado victims
Begin the much-anticipated
renovation of the Villager apart-
ment complex. Work on the
corridors and common areas will
include new paint, carpet, lighting,
artwork and furniture. Also, a number
of smaller units will be combined to create
larger apartments.
Remodel the Village Care Center Memory Care Unit
to mirror the look of Valley View Memory Care. The
renovation will help to create consistency in care and
environment that is so important for individuals with
memory impairments as they move to a higher level of care.
Associate pay adjustments have not been budgeted
for fiscal year 2013. However, if the Village ends the fiscal
year with budget expectations of at least $300,000, a year-
end bonus will be given to full and part-time associates who
were employed the entire fiscal year and meet other
eligibility requirements.
17
Theres no doubt about it: fiscal year 2012
(April 1, 2011, to March 31, 2012) was challenging.
Many of the same issues that beset John Knox
Village will continue to do so throughout the next
12 months and possibly beyond. In order to remain
successful, the Village must continue to be
nimble and adapt quickly to change, especially
with increasing competition, changing healthcare
regulations, a stubborn recession and other operating chal-
lenges.
Adopting an organization-wide declaration of Know Your
Numbers a campaign that encourages all associates to be
aware how their departments goals affect the bottom line
the Village is focused on taking steps that will help its forward
momentum toward a sustainable future. For example:
Increase the number of residents and patients
throughout the continuum, including full occupancy of
Valley View Memory Care and the Village House.
Increase awareness of healthcare services in
surrounding communities. Working with a new marketing
firm, Community Health Services (LifeStyle Services,
Village Home Health, Village Hospice and Home For Life
Solutions) will implement plans that create greater
awareness of the health services that the Village
offers throughout the Kansas City metropolitan
area. Whats more, the division will roll out pro-
gram enhancements in areas such as wound
care, ostomy and fall prevention, as well as
increase consumer education that will result in
more admissions to these health services.
Forging Ahead
$3,454,780
5,654,672
2,243,616
241,142
474,987
671,890
$12,741,087
30,861,525
4,818,893
2,399,218
$38,079,636
1,246,217
18,812,795
146,144,753
29,988,278
4,108,127
199,053,953
113,660,921
85,393,032
1,838,113
607,378
$139,905,463
$5,123,280
5,517,043
2,039,599
235,286
587,308
717,824
$14,220,340
29,222,906
4,828,094
2,176,999
$36,227,999
989,144
18,685,951
144,654,115
29,425,306
3,095,395
195,860,767
107,400,571
88,460,196
828,084
662,808
$141,388,571
ASSETS
Current Assets
Cash and cash equivalents
Accounts receivable, net
Current portion of assets limited
as to use
Board designated
Held by bond trustee
Inventories
Prepaid expenses and other
Total Current Assets
Assets limited as to use,
net of current portion
Board designated
Held by bond trustee
Restricted by donors
Total Assets
Limited as to Use
Other Investments
Property and Equipment
Land and land improvements
Building and lease improvements
Furniture and equipment
Construction in progress
Less accumulated depreciation
Total Property
and Equipment, net
Forward Delivery Agreement
Deferred Financing Costs, net
TOTAL ASSETS
$2,140,000
5,626,144
1,722,476
137,141
344,758
$9,970,519
7,844,599
41,801,278
$49,645,877
3,881,909
58,859,311
$122,357,616
15,462,804
687,791
1,397,252
$17,547,847
$139,905,463
$2,023,940
4,745,881
3,027,976
87,085
350,945
$10,235,827
6,408,271
41,039,064
$47,447,335
3,692,046
59,178,461
$120,553,669
18,946,029
493,046
1,395,827
$20,834,902
$141,388,571
Current Liabilities
Current maturities of
long-term debt
Accounts payable and
accrued expenses
Accrued payroll and
vacation pay
Accounts payable for
construction and property
Accrued interest payable
Total Current Liabilities
Deferred Revenues
and Deposits
Deposits received in advance
on entrance fees and
refundable fees
Deferred revenue, entrance
fees and monthly service fees
Total Deferred
Revenues and Deposits
Asset Retirement
Obligation, net of
current portion
Long-Term Debt,
net of current portion
Total Liabilities and
Deferred Revenue
Net Assets
Unrestricted
Temporarily restricted
Permanently restricted
Total Net Assets
TOTAL LIABILITIES
AND NET ASSETS
LIABILITIES, DEFERRED REVENUE AND
NET ASSETS
March 31, 2012 March 31, 2011
March 31, 2012 March 31, 2011
JKV Consolidated Balance Sheets
18
JKV Consolidated
Statement of Operations
$9,957,384
4,329,765
42,633,223
2,771,176
1,488,284
5,380
478,640
4,436,869
$66,100,721
31,833,809
5,893,583
6,108,217
5,882,630
5,621,189
560,339
3,014,669
135,108
2,825,522
8,348,382
$70,223,448
(4,122,727)
(370,527)
1,010,029
(3,483,225)
$9,443,915
5,730,983
41,286,022
3,060,820
1,292,381
800
385,372
4,965,278
$66,165,571
31,511,559
6,114,264
5,104,197
5,757,314
5,688,430
683,626
3,095,864
(16,804)
2,874,289
8,276,326
$69,089,065
(2,923,494)
1,713,114
254,448
(955,932)
FOR YEARS ENDED
Operating Revenues
Resident service fees
Annual agreement fees
Health service fees, net
Amortization of deferred
revenue including attrition
and move-outs
Investment income
Management fees
Net assets released from
restrictions used for operations
Other
Total Operating Revenues
Operating Expenses
Salaries and Wages
Employee benefits
Professional fees
and contract services
Supplies
Utilities, insurance and taxes
Bad dept expense
Other operating expenses
(Gain) Loss on disposal of property
and equipment
Interest
Depreciation
Total Operating Expenses
Revenue Under Expenses
Before Gain (Loss) on Trading
Securities
Change in net unrealized gain
(loss) on trading securities
Change in value of forward
delivery agreement
Decrease in Unrestricted
Net Assets
March 31, 2012 March 31, 2011
John Knox Village
Foundation Balance Sheets
$109,983
2,142,624
85,000
192,936
_
340,750
$2,871,293
$150,595
_
189,660
2,531,038
$2,871,293
$85,292
2,025,202
_
63,636
110,715
319,102
$2,603,947
$105,683
31,275
174,880
2,292,109
$2,603,947
ASSETS
Cash and cash equivalents
Investments
Estates receivable
Pledges receivable
Charitable remainder trusts
Charitable gift annuities
TOTAL ASSETS
LIABILITIES
AND NET ASSETS
Due to John Knox Village
Annuity payments due on
charitable remainder trusts
Annuity payments due on
charitable gift annuities
Net assets
TOTAL LIABILITIES
AND NET ASSETS
March 31, 2012 March 31, 2011
19
Fiscal Year 2012 John Knox Village Board of Directors
George Pagels, MD (Chair): President and CEO, Saint Lukes East-Lees Summit
Robert Piepho, Ph.D. (Vice Chair): Retired, University of Missouri-Kansas City School of Pharmacy
Robert Ellis (Secretary): Retired, John Knox Village Resident
Damond Boatwright: President and CEO, Lees Summit Medical Center
Denise McNerney*: President and CEO, iBossWell Inc.
Stephen Chinn: Attorney, Stinson Morrison Hecker LLP
Larry Crozier: Retired, Truman Medical Center
Thomas Jackson: President, Metcalf Bank - Lees Summit
George Russell: Retired, John Knox Village Resident
*Succeeded Damond Boatwright mid-fiscal year
John Knox Village Corporate Staff
Daniel Rexroth: President and CEO
James Franklin, RHP: Vice President, Finance, and Corporate Treasurer
Betty Freeman-Boots, SPHR: Vice President, Human Resources
Rodney McBride: Vice President, Health and Community Services
Maria Timberlake: Vice President, Senior Living
John Knox Village Foundation Board of Trustee
Clifford M. Seger (Chair): Retired, John Knox Village Resident
Gloria Romey (Vice Chair): Retired, John Knox Village Resident
James L. Ham (Secretary): Retired, John Knox Village Resident
Nancy Blackwell: Attorney, Chinnery Evans & Nail, P.C.
Phil Brummel: Retired, BKD LLP
Gene Gamber: Retired, General Motors
Melvin Gross: Retired, Modern Alpha Plastics, Inc.
Sandy Langsford-Cox: President, Langsford Funeral Home
Eugene R. Wilson: Retired, Kauffman Foundation
Foundation Staff
William C. Bergosh, CFRE, President
2012 The John Knox Village Annual Report is published once per fiscal year.
It can be found online at www.johnknoxvillage.org.
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