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June 23, 2008

What Ails Hospital Fund Raising

The economy is making fund raising tough for all kinds of institutions, but at nonprofit hospitals, that is just one of many challenges, Bill McGinly, president of the Association for Healthcare Philanthropy, said in a speech today.

The first difficulty is the “sense of entitlement” among patients who believe they have a right to the highest quality of care, regardless of their ability to pay, and that the health-care system has been hijacked by unscrupulous insurers who reap profits at the expense of affordable care, Mr. McGinly said. “Why donate to such a system?”

What’s more, most Americans don’t understand the difference between nonprofit and for-profit hospitals and medical centers, and few know that only 12 to 14 percent of the total are for-profit institutions, Mr. McGinly added.

Nonprofit hospitals and medical centers are also struggling to keep abreast of other developments: expensive technological advances in medical treatment, a ballooning number of under-insured or uninsured patients, privacy regulations that have made it harder for fund raisers to get details about patients who might want to make a gift, and legislators who want to do away with their tax-exempt status.

The solution? Mr. McGinly said that hospitals and medical centers should continue to increase the number of fund raisers they hire. A decade ago, half of the more than 4,500 institutions that belong to his association had one-person development departments, he noted. Now less than 20 percent do.

Health-care institutions, said Mr. McGinly, should also take pains to measure returns on their investment in fund raising and work to educate local leaders about the benefits they offer to communities.

— Holly Hall

Monday June 23, 2008 | Permalink

Comments

1. I would agree with most of what Mr. McGinly says, although I am uncertain that hiring more fundraisers is the answer.

   In my work with hospitals, I find that most do a poor job of communicating their mission and vision. Most do not promote themselves as nonprofit institutions, nor do they behave like nonprofits. If the 86 – 88% of hospitals are nonprofit, then they should be communicating the stories and testimonies of those who have been served — particularly the uninsured that have been served.

   I believe that the answer is to grow the individual donor base of hospitals using multiple marketing channels to communicate outreach to struggling families. Donors and prospects know the cost of healthcare, and understand that many individuals and families don’t make enough money to afford it.

   If communicated to right, compassionate donors will support hospitals that support low-income families.

   Hospitals also need to think outside of their service delivery area. Every hospital should be able to boast of supporters in other cities and states who have had themselves and loved ones treated at their facilities. I am grateful to the hospital in the city where I was raised. Many family and friends’ lives were saved by the caring and skilled staff there. I now live 300 miles away from that area, however, I would support the hospital if someone called on me to ask for a gift.

   — Kevin Feldman    Jun 24, 02:25 PM    #

2. We need reform! Get rid of tax benefits for hospitals. Many receive a greater benefit than the services that they provide. This is at the expense of taxpayers and patients. At the very least, scrap the “community benefit measure” for a tool that accurately measures taxpayers ROI.

   — Mary C    Jun 25, 10:46 AM    #

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