Message from Rick D. Senft, CEO and President

It is my pleasure to once again report on the progress of our organization and the state of our industry as we conclude another annual campaign on behalf of people with intellectual and developmental disabilities. We have embarked upon many new and exciting ventures and the plans and dreams of the recent past have materialized into tangible new supports that are currently meeting the needs of people and families in our local communities.

Accessible Dental Services was incorporated during the past year and was recently introduced to the public as a full service dental practice supporting people with intellectual disabilities. For far too long, people with disabilities have lacked access to affordable, compassionate and comprehensive dental services. Accessible Dental Services has bridged this gap and is now open for business in the Pittsburgh region. One of our more ambitious endeavors is to develop a mobile dental unit that will service all of western Pennsylvania and we are remarkably close to this goal. The 2008 Passavant Memorial Homes Foundation Golf Outing was devoted to raising funds for the mobile unit and the foundation community has warmly received and supported this initiative. Accessible Dental Services now complements PDC Pharmacy and the Life Enrichment Trust as part of a suite of specialized services that affords quality and value to the people with intellectual disabilities and the organizations that help to support them.

Our list of accomplishments in 2008 includes the significant progress we have made in expanding Lifesharing services for our consumers. Through education and development of proper incentives to ensure that the pursuit of this model aligns with the quality objectives and values of our organization, we have reached out to people willing to devote their lives to another person. I am proud to report that as a result of this initiative, many families have chosen to devote their lives to providing support to individuals with intellectual disabilities, and we are grateful to those who demonstrate such commitment to those in need.

We have also just opened a new residential program specifically designed to support children on our Rochester campus. This is an important addition to our service continuum, and one that we are proud to introduce, both for the services that it will provide to children and families, and also for utilizing the beautiful space and facilities that grace our Rochester campus. With its recreation area, picnic pavilion, wide open spaces and scenic views, it is an ideal location to support children.

Community Employment is another area in which we have made great strides over the past year. Through education, employment training and partnering with local resources in the business community, we are expanding the horizons for our consumers and reducing the barriers that still remain for people with disabilities to work gainfully within their communities. Our philosophy and culture must continue to advance these opportunities and challenge the obstacles that exist so that the people we support can realize greater independence and quality of life through employment in a vocation that suits their needs and desires, while productively meeting the objectives of their employers.

Our industry now faces great challenges with the system redesign and modifications that will affect every facet of service delivery. We are ready for this system change and have made the necessary investments in our infrastructure, including preparing our employees for the monumental changes, while minimizing the impact and disruption to consumers and their families. The Commonwealth of Pennsylvania was required to completely restructure its service authorization and reimbursement methods in order to comply with the requirements of the Federal government for states to administer Medicaid-funded services. I can confidently report that Passavant Memorial Homes is fully compliant with these requirements and prepared to meet the new demands and challenges that are imminently forthcoming.

Beyond the necessary investment in systems and infrastructure, we know that we must continue to reinvest in and cultivate our most valuable resource: the people who dedicate their careers and their lives to supporting people with disabilities through our mission. As the challenges facing our organization and our industry continue to mount, compounded further by the current economic downturn, we are reminded that it is only through the perserverance of people that we are able to succeed against such compelling forces. We are both fortunate and grateful for the help provided by our network of generous supporters and business partners, so many of which have supported our events, donated their time and afforded us their special talents and skills. I extend my personal gratitude to our Board of Directors and to every employee of Passavant Memorial Homes and Subsidiaries for their exceptional dedication and constant support to our mission. Through their tireless efforts and devotion, and the grace of God, I know that we will continue to provide value and quality in our endeavors and instill confidence in the consumers and families we are blessed to support.