Posted on 01/27/2009 7:09:29 AM PST by mnehring
January 21, 2009
I am sure you have heard rumors about Galveston, here are the facts. Please read this carefully, each of us must be concerned about our Endowment Fund and our ability to serve Children for many years to come. Therefore, the Joint Boards found it necessary to do the following.
Ralph W. Semb, President and Chief Executive Officer, Shriners Hospitals for Children
SHRINERS HOSPITALS FOR CHILDREN
GALVESTON HOSPITAL UPDATE
Shriners Hospitals for Children (SHC) is facing the most tumultuous and trying economic environment in the history of the organization. Leadership is focused on what is best for the Shriners Hospitals for Children system, which means difficult decisions must be made.
The SHC-Galveston Hospital suffered significant damage from Hurricane Ike in September of last year. More than $3.5 million has already been invested in addressing the damage. Patients have not been treated within the facility since the hurricane. Treatment of acute burns has been provided at other hospitals within our system.
During this same period, the value of the endowment fund has fallen by more than $2 billion. Expenditures in 2009 are again anticipated to exceed the total amounts of gifts & bequests, dividend & interest income, and other sources of recurring operating income.
Given current financial constraints and with capacity available to treat acute burn patients at the three other burns hospitals, the Boards of Directors and Trustees have voted to suspend additional renovation and reconstruction activity at the SHC-Galveston Hospital, pending further evaluation and improvement in our financial situation. Patients will continue to be served at Shriners Hospitals for Children and other locations as appropriate. An initial analysis estimates that this action could avoid as much as $30 million in annualized operating expense. This is one of many steps in a system-wide effort to achieve long-term financial stability.
To date, we have demonstrated our commitment to the staff of the Hospital through continuation of their pay and benefits coverage. Since normal operation of the Hospital will not resume until further notice, this coverage will continue through March 31, 2009 for eligible employees. Local Hospital leadership will adjust work hours and schedules to allow for the transition of active patients to alternative providers within and outside our system, as appropriate to their needs.
All employees will be paid accrued Paid Time Off (PTO). Access to outplacement services and to our Employee Assistance Program (EAP) will be made available through that same date. Employees will be contacted by Human Resources for consultation regarding assistance programs and opportunities to apply for open positions throughout the system.
Ping
A local foundation just gave $2,000,000 to the new wing at our St Joesph Hospital which is about 25% complete. The McLean Foundation was funded by a local lumber baron. STORY HERE
Here is one of the more recent articles. They have lost over $2Billion due to increased expenses and dropping donations.
http://www.freerepublic.com/focus/f-news/2029485/posts
A slowing economy and a hurricane, more of the later.
University of Texas Medical Branch (UTMB) in Galveston is also cutting way back. Some of the Doctors, etc. from UTMB also worked at the Burn Center. Loss of those professionals hurt almost as much as Ike and the economy. Why UTMB is partially closing is a topic for another thread.
Looks like the Galveston Shriners hospital is closing too.
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