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Evolving Mission

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THE EVOLVING MISSION OF HOSPITAL FOUNDATIONS

Isn't this supposed to be a "no brainer"? It seems so obvious that the purpose of a hospital foundation is to support the hospital. Most foundation's articles of incorporation plainly state that the purpose of the foundation is to help finance equipment, construction and educational programs for the hospital. Even the Internal Revenue Service classifies hospital foundations as support organizations for an operating charity. So what do we mean by the evolving mission of hospital foundations?

The purpose of most hospital foundations is still to support the hospital but a fundamental change in the use of foundation funds is being brought on by changes in the hospital mission. Hospital boards have recognized that their mission is more than just caring for the sick. It also includes keeping people well! While the incentive for keeping people well may be based in reimbursement strategies and goals of reducing hospital stays, the result has been a much more comprehensive view of healthcare by hospital leadership. Hospitals now routinely provide home health services, long-term care facilities and hospice support. Beyond simply providing treatment in different formats, emphasis is being placed on disease prevention and wellness programs. These diverse programs offer exciting funding opportunities for foundations.

The Cleveland Regional Medical Center Foundation in Shelby , NC discovered these new opportunities as a result of reviewing their mission. With the original goal of helping finance an extensive hospital construction and renovation program successfully completed, the Foundation came to a crossroads. Did their highly successful medical center still need a support foundation? Despite legitimate concerns about future patient reimbursement, management did not feel comfortable in asking for community support of equipment or traditional services that the medical center could well-afford. These questions led to a reevaluation of the role of the Foundation.

Interviews with members of the board of directors, foundation members and medical center management showed a shared pride in the Medical Center but a reluctance to ask for community support because of the well-documented financial strength of the organization. While reasonable arguments were made in support of fund raising for equipment or construction projects, the sense of urgency was missing. However, when the participants looked at the outreach components of the Medical Center programs, the need for foundation assistance was much more compelling. Providing infant car seats or bicycle safety helmets, funding a mobile health van for the elderly or collaborating with the local health department to expand their school health programs were exciting options that had become part of the Medical Centers expanding mission.

With the complete support of the Board of Directors of the Medical Center, the Foundation Board began to focus on community health issues. As a result, proceeds from the first annual giving campaign were directed to the Cleveland County Health Department so that a full-time family nurse practitioner could be based in a local school for physically and mentally handicapped children. The appeal of the project helped make the initial annual campaign a huge success and, more importantly, dramatically improved the children's lives.

By looking beyond conventional hospital needs, the Board positioned the Foundation as an important community health resource. The Foundation could raise friends and funds for needed community health programs that otherwise would not have been feasible. And while "doing good", the Foundation is building a donor base that will be there for more conventional hospital projects in the future. This is particularly important at this time in light of the recent drop in giving to healthcare agencies. The Association for Healthcare Philanthropy reported that giving to hospitals fell by 9% in 1997. The fall was attributed to the rash of mergers and acquisitions that blurred the identity of community hospitals. In order to restore donor confidence, hospitals are stressing the benefits of hospitals collaborating with other community organizations just as the Cleveland Regional Medical Center has done.

Supporting community health initiatives can be a very attractive option but only if all the agencies involved are active partners in the decision making process and the hospital board of trustees agrees that the project fits within the hospital mission. The best of intentions can be torpedoed by unclear communications, suspect motives and confusion over responsibilities between agencies. Without these critical elements in place, the hospital foundation could raise funds for projects that will can not be implemented.

Watters and Associates is proud to have helped with the reorganization of the Cleveland Regional Medical Center Foundation. We specialize in healthcare development programs and would enjoy the privilege of helping you evaluate your program.

 

 

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