Frequently Asked Questions

Why does JMHS need philanthropy?
Payment shortfalls, largely under government programs of Medicare and Medicaid, resulting in JMHS’s being paid significantly less than it costs for providing its various services. JMHS’s routine equipment replacement and upkeep budget is increasingly difficult to support from payments received for providing health care services. Larger required investments, such as facility projects or major equipment requirements, require the organization to borrow money. Philanthropy reduces the amount of debt required for projects and the need to use cash resources that must be maintained to ensure financial stability and borrowing capacity for these projects. Remaining financially stable allows JMHS to remain an independent facility; which allows us to provide services based on community need and not corporate policies.

You just raised $1.5 million for the Care Center. Why do you need to raise more money for the OR Suite?
Providing more complex surgeries/procedures requires new and updated technology and equipment. While JMHS has received grants to purchase items needed for total hip and knee replacements, the addition of an ENT and other specialists bring further equipment needs. While increasing surgery services helps to improve our bottom line, the upfront costs to provide these services is greater than we can financially support at this time. The only ways that we can fund capital needs are through loans budget projection considered borrowing (debt), cash reserves, and philanthropy as sources of project funds. All funds we gain through philanthropy displaces our need to spend cash reserves important to maintain our financial stability and borrowing capacity.

Why does health care cost so much?
Innovation
– Consumer demand, technological advances, and competition have driven the rate of revolutionary healthcare discoveries from one per year to nearly one per week! This innovation rate and advances new frontiers in genetic engineering, pharmacology, and biomedical science pose both ethical and economical issues in the future.

Competition and Duplication – Challenged financial status of health care providers, coupled with increased consumerism and demand, have given rise to duplication of profitable health serves among a variety of providers other than hospitals. Loss of profitable business lines is particularly harmful to hospital economics given the hospital’s high cost of regulatory requirements, services to all persons regardless of ability to pay, and 24/7/365 operating hours.

Workforce Shortages – Increased competition for a shrinking healthcare workforce has increased compensation expectations for healthcare workers.

Excessive Regulation – Healthcare is a highly regulated industry. The American Hospital Association studies indicate that an emergency department nurse spends one-hour doing paper for every one-hour of patient care delivered.

If you have further questions about community benefit, philanthropy, or other subjects of interest regarding Johnson Memorial Health Services please contact Administrator/CEO Stacey Lee or Development Manager Kristyn Wicht at 320-769-4323.