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Hospital cutbacks foreseen in capital, equipment.(BUSINESS BRIEFS)


Only 8 percent of hospital fundraising executives who expect to raise less money this year than in 2008 said their institutions would have to reduce community services, according to a survey by the Association for Healthcare Philanthropy (AHP).

Budgets are more likely to be trimmed in the areas of expanding or renovating health care facilities (36 percent) or purchasing new equipment (35 percent), according to the first major recession survey of 2009 compiled by AHP.

More than three-quarters of fundraisers for nonprofit hospitals and health care systems say the current recession is negatively affecting their programs, with almost half are reducing their giving forecasts for this year. Those reducing their 2009 revenues foresee average declines in giving of about 17 percent. About 40 percent of respondents expect cuts to their operating budgets, with an average reduction of about 12 percent, according to the survey.

Three-quarters of those surveyed expect no changes in staff size, but 14 percent anticipate a decrease against 10 percent that foresee an increase. Barely one in five members expect to eliminate or significantly reduce their involvement in fundraising programs.

If members do plan to reduce programs, almost two-thirds (63 percent) of those will scale back on special fundraising events such as canceling high-end galas or delaying capital campaigns (28 percent) but just as many (65 percent) will increase their development efforts, namely in the areas of planned giving (53 percent), major gifts (47 percent) and donor relations (44 percent).

About three out of four AHP members report the recession is affecting their programs "somewhat negatively," but 13 percent report no effect and one in 10 said it's "very negative."

"Despite the deepening recession, hospitals and health care systems will continue to exercise skill, planning and patience in order to raise scarcer donations which are designed to serve both the insured and uninsured," said William McGinly, president and CEO of the Falls Church, Va.-based association whose members direct philanthropic programs in 2,200 North American health care institutions.

COPYRIGHT 2009 NPT Publishing Group, Inc. Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.

Copyright 2009 Gale, Cengage Learning. All rights reserved. Gale Group is a Thomson Corporation Company.

NOTE: All illustrations and photos have been removed from this article.


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