Many people associate Shriners with their characteristic rhombus-shaped, tasseled, red hats; or as the guys dressed in wild costumes and driving funny little cars in parades across the country; and many may think of Shrine circuses and clowns. Behind all that fun, however, is a network of Shriner hospitals—20 in the United States and one each in Canada and Mexico. Among those, 18 specialize in orthopedics, three in treating serious burn injuries, and two more in treating spinal cord injuries and cleft lips and palates. The hospitals are funded by a multitude of fundraising events organized by its red fez-wearing members, contributions, bequests, and income from an endowment fund. As a result, they are able to treat children under the age of 18 completely free of charge.
Since the first facility opened in 1922, more than a million children have been treated at the hospitals. But with increasing costs, dwindling donations and a shrinking endowment, the charity is being forced to make some difficult decisions. Last month, the Shiners’ board of trustees voted to close four of the group’s eight research centers and lay off about 40 people at its administrative office, according to an Associated Press report. And at the organization’s annual meeting July 6-8 in San Antonio, about 1,200 Shriners will cast their vote to close a quarter of their hospitals. The sites being considered are those in Erie, Pennsylvania; Spokane, Washington; Springfield, Massachusetts; Greenville, South Carolina; and their first facility in Shreveport, Louisiana. The closures would eliminate around 225 beds, according to data from Shriners hospitals Web sites.
Also on the chopping block is the hospital in Galveston, Texas that provides care for burns and cleft lip and palate that was closed temporarily after damage from Hurricane Ike. The Shriners national board voted in January to keep the Galveston hospital closed indefinitely and to suspend all renovation and reconstruction work, but locals have vowed to reopen the facility and have been lobbying the organization to reconsider its decision.
Officials at the organization say its endowment fund has been steadily declining over the past decade. According to its Form 990, as of 2006, the Shriners Hospitals had an endowment of $10.2 billion USD, but due to the diversion of $1 million a day from it to balance the budget for the 22 hospitals, a charitable giving slump and a failing stock market, that amount has now shrunk to $5 billion. “Unless we do something, the clock is ticking and within five to seven years we’ll probably be out of the hospital business and not have any hospitals,” said Ralph Semb, chief executive officer of Shriners Hospitals for Children.
Members will also consider keeping all 22 hospitals open, or a nationwide 30 percent budget cut, but Semb contends that either option would signal disaster for the organization and that closing these hospitals is the only viable option. He said that to continue functioning as they do currently with all the hospitals open, Shriners would have to grow the endowment to about $12 billion by 2014—an unlikely feat considering the state of the nation’s economy. “The outlook is not good, but we know that we can right it,” he said. “And we can within a five-year period of time get our expenses down far enough to equal the income we have coming in and hopefully start building on that endowment fund.”
But Semb admitted that getting the two-thirds majority needed to close the hospitals will not be easy. Some Shriners who have spent years volunteering and raising money say they’ll oppose the move, and patients and their families are vowing to rally at the annual meeting. And if the vote fails, it won’t be the first time. Despite financial woes, a recommendation to close the Minneapolis hospital and several others was handily defeated in 2003.
In cities where hospitals may close, Shriners’ supporters and hospital staff are coming together to organize fundraisers and online charity drives. Others are turning to churches and friends for donations. “I’ve collected $92 in two days,” said Brooklynn Myers, a 14-year-old who received scoliosis treatment at the Greenville facility. “Me and my mom feel like it’s heartbreaking we’d have to drive all the way to Lexington (Kentucky) and we’ve made special bonds right here.”
Meanwhile, Jason Burbage, a 33-year-old businessman who was born with no fingers and was himself a patient at the Greenville hospital, continues his volunteer work there as he has for years. He says the work has become more difficult because of the financial problems, but that employees are trying to remain optimistic and keep the patients from worrying. “We don’t want the patients to focus on it,” he said. “It’s not a done deal.”
The Shriners Hospitals for Children health care system depends on donations to fund all its programs, including research. For information on ways you can support their efforts, please visit www.shrinershq.org.
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