Shriner's Hospitals decide to take insurance so they can survive

From KUTV in Utah:

One of the most unique charitable organizations in the country is changing the way it does business in order to stay alive. Six Shriners Hospitals survived being closed, but now the organization will accept insurance for the first time ever.

The Shriners Hospital in Salt Lake City was never considered, but like the other 22 around the country, it will have to be more efficient. The decision to take insurance is huge. Shriners Hospitals treat children and don't ask for a dime. Everything has been supported by donations for almost 90 years, but then this recession came along.

"Push on it fast," a physical therapist encouraged four year old Grace Olson. "Good job," she said as the little girl laughed.

Grace is familiar with physical therapy since she's been going every two weeks since she was an infant.

"She has limited function of her legs from about the hips and the thighs down," said Marianne Olson, Grace's mother.

Grace was born with spina bifida. A birth defect where the spinal cord and nerves are left exposed. But she gets around pretty well, and she recently received new orthotics from Shriners Hospital, as well as her therapy. And it didn't cost her family a dime.

"We've had to purchase them from private companies in the past and they do get quite pricey," said Marianne.

A system of 22 Shriners Hospitals offer free medical care to children regardless of ability to pay. But the recession has put a crimp in the 87 year old system.

"Our private endowment, the value dropped dramatically from about eight billion dollars to close to five," said Mike Babcock, the Director of Public Relations for Shriners Hospitals in Salt Lake City.

It is still a lot of money, but trustees could see a day when the endowment ran dry, possibly as little as ten years from now. Their proposal was to close six hospitals. But this week, delegates at the annual Shriners convention decided to save the hospitals and start taking insurance money.

A move they hope patients like Grace will never notice as they make drastic changes behind the scenes.

"We don't have a billing department," said Babcock. "We don't send out bills for the care we provide. The families come and go knowing the care we provide is at no cost."

Billing insurance companies is not going to get Shriners where it needs to be. Each hospital will try to work on partnerships with other hospitals to become more efficient. There will also be more focus on getting donations that has always made the hospital system possible.