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Another blow to UTMB-Galveston:
07:13 AM CST on Wednesday, January 21, 2009
[SIZE=-1]By Laura Elder / The Daily News[/SIZE]
GALVESTON, Texas The islands Shriners Hospital for Children could be closed for months perhaps years as the endowment that funds it and other pediatric facilities across the nation grapples with a $3 billion shortfall caused by free-falling financial markets, corporate officials confirmed Tuesday.
The indefinite closure will cost most of the 325 employees their jobs and force young patients to receive treatment at other Shriners hospitals in Boston, Cincinnati and Sacramento, which also specialize in treatment for burns, officials said.
Just what repercussions the closure will have on the University of Texas Medical Branch, which does not manage the hospital but works closely with it, was unclear.
I would never say never, said Ralph Semb, president and chief executive officer of Tampa, Fla.-based Shriners Hospitals for Children. It could be months, years ... its hard to say. We cant reopen it until we recoup and recover endowment funds.
Confirmation of the hospitals indefinite closure comes after tearful reports by employees Monday and more than a day of evasions by corporate officials. It also comes after administrators at the hospital in November were adamant that the hospital would reopen.
The island hospital, world renowned for research and for treating badly burned children, has been closed since Hurricane Ike struck Sept. 13.
The hospital this week has suspended operations and stopped reparations to the damaged building, 815 Market St. The philanthropic organization, however, will pay employees until March 31, Semb said.
The island hospital could not continue paying employees of the closed hospital $2.5 million a month in salaries, Semb said.
The economic downturn also has forced the organization, with 23 hospitals, to stop reconstruction work on hospitals in Los Angeles and St. Louis, Semb said. No patient will be left abandoned, Semb said.
Galveston Mayor Lyda Ann Thomas learned of the indefinite closure of the hospital Monday evening, she said.
Permanent closure of the hospital would be a tragic loss to the island and for patients from Texas, Mexico and South America who relied on the facility. The organization, known for members who wear red fez hats, offers all its patients treatment without charge. Shriners has treated about 18,000 children in Galveston since its inception.
The medical branch, which provides services and research, also would be hurt by the hospitals closure, Thomas said. The uncertain future of the island hospital is another blow to health care in the county.
Hurricane Ikes storm surge flooded 75,000 square feet in buildings on the medical branch campus, which is yards away from Galveston Bay.
With hurricane expenses and lost revenues of about $710 million, the medical branch, home to research facilities, the states oldest medical school and John Sealy Hospital, in November began laying off 3,000 people.
After making storm repairs, John Sealy Hospital opened 200 beds to the general public in a sharply downsized facility.
But Thomas was hopeful that the Shriners, which traces its island relationship back to 1963 when it opened a seven-bed ward in the John Sealy Hospital, would return, she said. Its emergency room has not reopened and is operating on a treat-and-transfer basis.
I am hopeful and optimistic that it will be a temporary closing, Thomas said. I believe the city and the county, foundations and organization stand ready to help support the pediatric hospital.
Shriners island hospitals $34 million operating budget comes from an endowment.
Many foundations earn money from investing their endowments in a mix of stocks and bonds, which took a hit in 2008.
If the economy never gets better, what are you going to do? Semb asked. We have a fiduciary responsibility to make sure we can afford what we have.
