ProPublica November 12, 2021 5AM Eastern “St. Jude Hoards Billions While Many of Its Families Drain Their Savings by David Armstrong and Ryan Gabrielson
“St Jude Children’s Research Hospital promises not to bill families. But the cost of having a child at the hospital for cancer care leaves some families so strapped for money that parents share tips on spending nights in the parking lot”
Read ProPublica for all the details.
Summary offered by 2244
Top ten American Children’s Cancer Hospitals and their fundraising which combines “contributions and grant revenue reported by each hospital and that of its associated charitable foundations.”
Rank (US News and World Report Ranking). Children’s Hospital of Philadelphia $113 Million
Dana-farber/Boston Children’s Cancer and Blood Disorder Center $415 Million
Cincinnati Children’s Hospital Medical Center $296 Million
Texas Children’s Hospital $72 Million
Children’s National Hospital $40 Million
Nationwide Children’s Hospital $230 Million
Children’s Hospital of Los Angeles $196 Million
Children’s Healthcare of Atlanta $130 Million
Children’s Hospital Colorado $54 Million
St. Judes Children’s Research Hospital $1,700 Million
Saint Judes (SJ) “raised roughly as much as the nine hospitals combined that are ahead of it in the quality rankings. SJ currently has $5.2 billion in reserves which in part are professionally invested to create income as well. Reportedly the reserves are within accepted guidelines “which call for charities to maintain reserves of less than three times total expenses.” Others note that this still is exceptional as “a nonprofit the size of St. Jude [typically keeps in reserve] one to two years of expenses.” “Ge Bai, a professor of accounting and health policy” (John Hopkins) comments that SJ …”should be spending the money as aggressively as they raise it, but they seem to be hoarding.” This all falls against a backdrop in which “researchers, oncologists” et al. “complain about a dearth of funding for pediatric cancer studies nationally.” Others complain that SJ draws donations from all of America but most of the benefit goes to those from Tennessee. Such fundraising some feel undercuts local efforts to raise money for their own programs that benefit their local patients.
“Only about half of the $7.3 billion” raised by SJ in the past five years were spent on “research and caring for patients.” “30%” was spent on fundraising and “20%, or $1 or every $5 donated, increased its reserve fund.”
A breakdown of Annual Revenue and Expenses for SJ. Revenue $1.3 Billion in Contributions, $151 Million in Investment Income, $81 Million in Government Grants, $114 Million from Payments for Patient Care and $53 Million Other. Expenses Hospital Care and Research $875 Million, Fundraising $429 Million and Surplus $424 Million.
SJ reports that “countless families have benefited from” the SJ charity since 1962. Quoting SJ and its fundraising wing ALSAC (American Lebanese Syrian Associated Charities) “This often comes as a huge relief to families who often expect to sell all their belongings just so their children can get the medical care and treatment they need to save their lives.” They comment further that SJ “cannot cover all financial obligations of all families…” These limitations, according to SJ, are disclosed on “its website and in material provided to those whose children are admitted to the hospital”...and are in part designed “to ensure...responsible use of donor funds.”
As it turns out St. Judes, as any other medical center, does bill insurance be it government or private. It also provides living accomodations for one parent. So parents aren’t billed for those services but taking care of a child with cancer can drain resources. Those costs can include accommodations for another parent/caretaker etc, loss of income from taking leave or quitting jobs which can result in “missed payments for cars, utilities, and cell phones. Others face eviction or foreclosure because they can’t keep up with rent and mortgage payments.” “ProPublica identified more than 100 St. Jude families seeking financial help through GoFundMe” etc.
The problems of SJ, in terms of helping families financially, are similar to other pediatric hospitals; it's just that SJ has been much more effective in “marketing [that] creates the public perception that it [SJ] alleviates these burdens.” SJ/ALSAC have humble and earnest beginnings with Danny Thomas and others. Read the article for more detail on that and individual patient/family stories as well. SJ, having been provided with the ProPublica findings, are expanding “assistance it will give to parents and other relatives during their kid’s treatment in Memphis” effective November 15.