Facing hard times, Shriners may close hospitals

http://www.msnbc.msn.com/id/30139770/

updated 2:49 p.m. ET, Thurs., April 9, 2009

GREENVILLE, S.C. - Shriners Hospitals, which has provided free care to children since before the Great Depression, is considering closing a quarter of its facilities as donations stagnate, costs increase and the charity's endowment shrivels.

The group's director says it's the only viable option.

Officials at the Florida-based organization say it is siphoning $1 million a day from its endowment to balance the budget for 22 hospitals in the U.S., Canada and Mexico. Meanwhile, they say, that fund has fallen to $5 billion from $8 billion in less than a year because of the sputtering stock market and a charitable giving slump that has hurt philanthropies nationwide. The fund has been declining since 2001. The group will vote this summer on the closures.

"Unless we do something, the clock is ticking and within five to seven years we'll probably be out of the hospital business and not have any hospitals," Ralph Semb, chief executive officer of Shriners Hospitals for Children, told The Associated Press.
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Widely known today for burn and orthopedic care for children, the Shriners Hospitals system opened in 1922 with a facility in Shreveport, La., that specialized in treating polio. By the 1960s, the group had hospitals nationwide and expanded its care to include spinal cord injury rehabilitation, cleft lip and palate care and medical research.

More than 1 million children have been treated at the hospitals, which were created by the fraternal organization of the same name whose members are known for wearing red fezzes and driving miniature cars in parades. The care is free to all.