Public fundraising will be key to success of surgery renovation project
As the planned renovation and expansion of the New Ulm Medical Center surgery center wraps up the design phase of the project itself, another very important aspect of the project has commenced: the philanthropic portion.
The total cost of the project is $3.5 million, explained NUMC Foundation Director Carisa Buegler. Of that total cost, Allina has committed $2.75 million to the project. NUMC is seeking to raise the remaining $750,000 through philanthropic contributions.
“We started the fundraising internally and have had great success,” Buegler said. Through the annual giving campaign, the Foundation raised $120,000 from employees – more than has ever been raised before, Buegler said. “The NUMC Auxiliary has given $80,000 and the physicians have a goal of $250,000.”
It’s no surprise, Buegler said, that the people closest to the project were willing to give. The Foundation has now started its public fundraising portion of the campaign – what reasons would the public have to give to such a project? Buegler addressed several common questions that have been posed in the course of the fundraising.
- It is a common misconception that NUMC is a for-profit facility and, as such, should have funds in reserve for such projects. In fact, the medical center is a not-for-profit hospital. “This means that we provide services to all patients regardless of their ability to pay – that includes over $1 million in free care each year,” Buegler said. That also means that any profit that is realized each year is re-invested back into the facility, equipment and services.
- NUMC is a community asset dependent on partnerships to be successful. “NUMC provides excellent care to our community and is one of our community’s most vital assets,” Buegler said. “Just like any other community asset such as the schools, churches and recreational facilities, NUMC depends on partnerships in the community to be successful.”
- The history of philanthropy connected to the New Ulm Medical Center is well-known. “The first hospital built in New Ulm was built with donations, and through the years, philanthropy has helped make our medical center into what it is today,” Buegler said. The future of the medical center, whether it relates to a new piece of equipment, new service provided to patients or the renovation of the building, is dependent on philanthropic ventures.
- Community members wonder why they should donate when the cost of healthcare is already so expensive. “There is no question that health care costs are high,” Buegler conceded. “Continuous advancements in technology, along with the patient’s expectation that they have access to much of the latest technology at a community hospital level continue to impact health care costs.” NUMC continually seeks out ways to control healthcare costs, Buegler said. In fact, in early 2007, diligence in controlling costs allowed the medical center to implement an overall 10 percent decrease in hospital and clinic charges.
- Nearly 97 percent of NUMC’s patients are covered by some type of insurance – either government (Medicare or Medicaid) or commercial. These third-party payers place restrictions on the amounts they will reimburse for the treatment of their insured clients. “These payments do not cover both our increasing costs of doing business today and our ability to meet the needs of the future” Buegler said. “Additional financial support from the community, in the form of philanthropy, is also needed to ensure that we can deliver the kind of care our patients expect.”
- One question that Buegler is asked often is why Allina can’t fund the entire project. “Allina is a large, not-for-profit health care organization with 11 hospitals and 65 clinics across Minnesota and western Wisconsin,” Buegler said. “As large and successful as Allina is, it cannot fund all the projects alone. We need our philanthropic partnerships in our local communities to ensure we achieve excellence in the care and treatment of people in our communities.” In fact, in 2007, Allina only had the funding available to approve 10 percent of the capital requests that were presented.
Buegler also stressed that 100 percent of the donations will be used to fund this project.
“What it comes down to is this is a community hospital and our partnerships with the community have always been key to the success of the medical center,” Buegler said. “Those partnerships will continue to be important and are integral to this surgery expansion and renovation project.”
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