The word philanthropy means “love of
humankind.” Nowhere is that more evident than in not-for-profit hospitals that typically began when a group of concerned
citizens raised funds to ensure their community could access the best care available.
Hospitals — particular those in California
— face insurmountable odds. In an environment of ever-increasing regulations, unfunded mandates, demand for services and rising
costs that outpace smaller increases in reimbursement, philanthropy is becoming more
and more critical.
Smart Business spoke to Barry Arbuckle,
Ph.D., president and CEO of MemorialCare
Medical Centers and chair of the California
Hospital Association, to learn about hospital
philanthropy.
How important is philanthropy to hospitals?
Many hospitals report a negative or just
break-even bottom line. Even those achieving slim profits know it’s not enough to cover
infrastructure, equipment, education, staffing
and research. Hospitals are postponing capital spending, technology acquisitions and
renovations due to inadequate operating
margins. And state seismic regulations force
hospitals to make multimillion-dollar facility
investments or risk closing.
The burden of meeting the health needs of
California’s 13.2 million uninsured and under-insured also weighs heavily on nonprofit hospitals, as revenues from government and
other payers decline.
How does philanthropy support hospitals?
In 2006, U.S. health care institutions raised
$7.9 billion. Philanthropic gifts support facility improvements, essential equipment
upgrades, wellness, education, screenings
and much more. They allow us to provide
groundbreaking clinical research, enrich
medical and health education, enhance patient programs and fund capital expansion.
Philanthropy makes a difference. Every
week premature babies are saved, elderly
patients comforted, bones mended, illnesses
diagnosed and lives saved thanks to the generous philanthropy of individuals, corporations and private foundations in our caring
communities.
Philanthropy elevates a life of success to a
life of significance. We see people making
that choice every day: children raising $11 for
cancer research through a lemonade stand,
adults funding charitable trusts and annuities, others making outright major gifts,
board members providing expert leadership,
hundreds of volunteers and organizations
sponsoring fund-raising events — all appreciate the value of having high-quality patient
care close to home and want others to
receive the same, today and in the future.
Can you share examples of philanthropy?
Well over $200 million in gifts, grants and
bequests given to MemorialCare Foundations help distinguish our hospitals among
the top medical institutions in the country.
When Long Beach Memorial opened in
1907, physicians and community members
each donated $200 to begin what is today the
second largest community hospital campus
in the West. Philanthropists were responsible
for the state’s largest children’s hospital when
the late Earl and Loraine Miller’s generosity
helped to build the Miller Children’s Hospital in 1970. Their own foundation continues with
a lead gift of $5 million for Miller Children’s
Hospital’s $151 million expansion.
Saddleback Memorial began when Leisure
World citizens, envisioning a world-class hospital in South Orange County, raised
$500,000, and developer Ross Cortese donated nine acres. It opened in 1974 — the first
community health facility serving the growing Saddleback Valley. Philanthropy helped
build Meiklejohn Critical Care Pavilion with
the gift from philanthropists Louise and the
late Bill Meiklejohn, the largest in Saddleback
Foundation history. A $190 million plan will
further expand the medical center, services
and technological capabilities. Gifts to
Saddleback Memorial-San Clemente helped
fund heart programs and technology.
Funding for Orange Coast Patient Care Pavilion offers advanced diagnostic and treatment
facilities for cancer, surgery, obesity and
other services at Orange Coast Memorial.
In fiscal 2007, our medical centers provided $146 million in charity care and community benefits. We support charities like Susan
G. Komen for the Cure and Habitat for
Humanity, where over 200 MemorialCare
leaders refurbished a home in Santa Ana.
How can employers help?
Corporate philanthropy is effective for
companies trying to meet consumer expectations for the role businesses should play in
society, says a recent McKinsey global survey. Employers and their work force help
provide ‘that extra measure of care’ through
many philanthropic channels — individual
gifts, corporate grants, payroll deductions, in-kind gifts, major gifts, estate and planned
gifts, endowments, tributes, corporate giving,
fund-raising events, sponsorships and more.
One example, ‘Partnerships in Excellence,’ a
group of business owners and executives,
supports capital equipment needs at Long
Beach Memorial/Miller Children’s. No matter
the size of a gift, we are indebted to those
who choose a life of significance through
their philanthropic commitments.
BARRY ARBUCKLE, Ph.D., is president and CEO of MemorialCare Medical Centers (www.memorialcare.org) and chair of the California
Hospital Association. Reach him at [email protected] or (562) 933-9708. MemorialCare Medical Centers include Saddleback
Memorial Medical Center in Laguna Hills and San Clemente, Orange Coast Memorial Medical Center in Fountain Valley, Anaheim
Memorial Medical Center, Long Beach Memorial Medical Center and Miller Children’s Hospital in Long Beach.