As 2007, Devereux’s 95th year, draws to a close,  I am very pleased with the work of the Devereux team this year, work both in the care of our consumers and in our care of our organization. Clearly, there can be no consumer care without a viable organization! It was a great year from several perspectives: in terms of client safety (major injuries decreased), employee satisfaction (turnover declined), community support (number of major donors increased), and financial strength (liquidity and fund balances increased while debt declined).  Additionally, during 2007, Devereux’s endowment increased by more than $25 million through the sale of two major pieces of real estate, one in Pennsylvania and one in California.  

A highlight of this year was the 95th Anniversary Gala in November; this was a world class party attended by four hundred supporters at the Philadelphia Seaport Museum. It was our privilege to honor the Genuardi family for their long-standing and generous support of both Devereux and other critical charities in the region. During the celebration, we awarded the annual Weaver E. Falberg Leadership Promise Fellowship to support the graduate education of one of our outstanding staff members.  Through the generosity of the sponsors and a matching gift of the net proceeds by our Board leadership, the Gala raised almost $500,000 for Devereux’s Pennsylvania programs.

On a less positive note, the Federal government continued its efforts to reduce Medicaid expenditures. The reduction affects Devereux in two ways. First through audits, either state-wide or program specific, which search for non-compliance with federal requirements. Second,  draft regulations will negate the Medicaid coverage of long-standing approaches to consumer care. Although the direct risk from these initiatives to Devereux is modest, the potential impact on the states is catastrophic. Added to the very negative trends in state budgets – California and Florida are already forecasting enormous deficits for fiscal 2009 – public funding for the care of the intellectually disabled and behaviorally challenged will almost certainly be negatively impacted. 

Another major challenge for Devereux is the rapid growth of its major for-profit competitors.  Although Devereux is the largest non-profit provider in the country, two for-profit providers have rapidly grown to four times the size of Devereux, and these providers are formidable competitors.   

As we head into 2008, I anticipate the following critical work in front of us.   

  • With the support of the Board of Trustees and the encouragement of many staff, we are undertaking a major “green” initiative. To this end, we will review our facilities, transportation, technology, and waste to find economical ways to reduce consumption of natural resources
  • We are rapidly upgrading our marketing capacity to effectively compete with the major for-profit organizations. 
  • We are also building upon the success of our outstanding prevention programs, including the resiliency-based Devereux Early Childhood Initiative and School-wide Positive Behavior Supports.  Specifically, we will be aligning resources, conducting research and forging community-based partnerships to ensure the continued development and adoption of cost effective, evidenced-based and sustaining prevention programs that improve outcomes for children and adolescents. 
  •  In order to support our employees in healthful lifestyle choices, we are offering a significant discount on employee medical insurance if employees complete a health assessment, obtain age and gender appropriate diagnostic evaluations, and take steps to address the serious health issues of smoking and obesity. Through a partnership with NutriSystem, we will offer a weight reduction program to employees at a sharply reduced cost (and I will be among the first participants in this weight reduction program). 
  • Through increased staff tuition assistance, we will increase our support for the continuing training and education of our staff. We view the training of our staff as critical to the execution of our mission and the optimization of our own best practices.  

I thank all of you who have helped build this wonderful organization and deliver on our mission: 

Devereux changes lives and nurtures human potential. We inspire hope, ensure well-being, and promote meaningful life choices.  

Happy New Year.