Seeking Shelter
Seeking Shelter | Medical Housing, Hospital Hospitality House, Ronald McDonald House, Seton Lodge, Liz Piercy, Nancy Denning-Martin, Philanthropy

The Effect of the Economy on Medical Housing

Nashville is well respected for the quality of research and treatment options available at the city's many hospitals. Patients with cancer, burns, heart disease, neurological disorders and other complicated diagnoses are routinely referred to one of the city's outstanding facilities for care. With those extended stays, however, comes the unique problem of housing for family members.
 
Even with options including Hospital Hospitality House (HHH), Memorial Foundation Hope Lodge, the Ronald McDonald House Charities and Seton Lodge, Nashville can't keep up with demand for services in the best of times. In the current tight economy, 2009 has proven especially difficult both for families who desperately need inexpensive shelter and most of the non-profit housing organizations trying to stretch shrinking budgets to meet increasing needs.
 
Hospital Hospitality House was founded in Nashville in 1974. The idea was born of long days and nights in a hospital waiting room after Rickey Beazley, son of Raymond and Mickey Beazley, was in a car accident. Mickey, along with her sister-in-law Ann Krenson witnessed others from out of town sleeping in chairs, eating meals out of vending machines, and washing up in restroom sinks. They envisioned a "home away from home" where those families could find rest and respite.
 
The need that was so apparent in 1974 is even greater today. "Since I came in 2005, we've done nothing but talk about expansion," said HHH Executive Director Nancy Denning-Martin. "Our ultimate goal is to build a facility with at least 50 rooms and up to 100."
 
In the meantime, the non-profit organization has gotten creative in finding a way to stretch their space. The main house has 10 rooms, and HHH has secured 12 rooms in an extended stay hotel. The most recent expansion was made possible by a grant from Wal-Mart that allowed the organization to open HHH Wal-Mart House this past March with eight apartments designated for families facing longer stays.
 
"Plus, we have 14 partner hotels so once we're full, we can call those hotels. They've just been incredibly generous. We've put over 300 families in partner hotels this year," said Denning-Martin. Despite the additional beds, Denning-Martin noted the inventory doesn't touch demand.
 
"In the summer of 2006, we did a community needs assessment with the UT College of Social Work," she said. The assessment found "Nashville needs at least an additional 130 rooms to meet even 25 percent of the need." Denning-Martin continued, "It speaks very highly of healthcare in Nashville. The question is what do you do with these families once they get here?"
 
She said the maximum HHH charges is $20 a night for a room, meals, laundry, snacks, access to social workers and other services. "We never turn anybody away because of an inability to pay. For the long-term stay, it's almost universal they can't pay," she noted.
 
At Ronald McDonald House Charities, it's a very similar story. The non-profit organization has undergone expansion in an effort to better serve families of children with a critical illness. Liz Piercy, executive director, said the home originally opened in 1991 with 16 bedrooms. By 1999, the residence was doubled to include 32 bedrooms.
 
Despite the addition, she continued, "It's never enough. We're full every night, and we have a waiting list."
 
Even the demand for day services has sharply increased at the Ronald McDonald Family Room at the Monroe Carell Jr. Children's Hospital at Vanderbilt, which opened in 2004 to offer families a welcoming respite from waiting rooms. For the past two years, Piercy said the room averaged about 2,500 visits per month. "It's jumped in the last six months to about 3,500 per month," she said. In addition to staff who are on hand to support families, the room features free snacks and drinks. Piercy said in the current economic climate, any cost savings is a help to families facing huge medical bills.
 
At the residence, where the average length of stay is 22 nights, the small nightly fee includes a room, private bath, free laundry facilities, access to two kitchens stocked with staples and extras, plus other comforts of home. "We do charge families $15 a night, but we never turn anyone away, regardless of their ability to pay," Piercy said. "The $15 a night doesn't anywhere near cover what it costs to keep our doors open. The average cost right now is about $83 per night per room."
 
Piercy added the number of people who cannot afford the $15 fee is rising every month. "This year, 75 percent of the families who have stayed with us, can't afford to pay anything." She continued, "There has been a marked change in the last year. Just in the month of September, 82 percent of the families who stayed with us could not afford to pay."
 
At Seton Lodge, located on the Saint Thomas Hospital campus, the story has been a little different. Jim Burkhard, director of clinical support services for Saint Thomas Hospital, said the mission-driven hotel is generally used for short-term stays. "Except for (families of) transplant patients, we typically don't have anyone who stays a long time," he noted.
 
For this reason, most people have been able to pay the rate, which is less than $60 a night. Burkhard pointed out their rate is less than half what many local hotels charge, and Seton Lodge offers far more amenities including access to a kitchen, community room and free laundry facilities, in addition to its convenience to the hospital. Based on Seton Lodge's consistently high occupancy rate, Burkhard said, "It would be easy to argue the case that there is a need at every hospital."
 
As for the other non-profit housing organizations, the tough economic climate has called for creative planning and old-fashioned belt tightening.
 
Denning-Martin said Hospital Hospitality House has not seen a huge decline in donations, but she also noted the majority of their fundraising dollars come in the last part of the year. "Our donors are not going away, but they are being pretty honest about their need to cut back. We're grateful they are supporting us at any level," she said.
 
The 2009 Patron's Luncheon, which was held on October 13, raised $434,000 in support of HHH programs and services. Although this amount was significantly down from 2008's record-breaking $525,000, it still topped amounts raised in 2007 and 2006.
 
Before the economic downturn, Denning-Martin said HHH had seen fundraising revenues increase about 200 percent. "I think the temptation is that first good fundraising year to go ahead and build because the need is there. But being creative and innovative means to expand without bricks and mortar. Those types of decisions have allowed us to weather a rough economic year." She noted the organization has tripled the size of their residential services without tripling the cost through their housing partnerships. "We've been able to grow and expand in a time that has been difficult for most people."
 
For Ronald McDonald House Charities, grant applications, fundraisers and corporate giving programs ensure services don't have to be cut. Piercy said participation and enthusiasm for events has remained very high. However, the current economic realities have meant a shift in strategies such as securing five $1000 sponsorships to replace a single $5000 gift. There have been other subtle signs of a weak economy, as well. Groups are still enthusiastically bringing snacks, meals and staples to the house, but this year there is more canned tuna and less fresh produce.
 
Overall, Piercy said donations are down about 10 percent in 2009. "We've tightened our belts when and where we can. We're thrifty where we can be, but there are some things you can't be thrifty about … we're still going to have a huge electric bill," she said of operating the 32,000 square-foot home.
 
"We've been very fortunate the community has answered our call four support, but we are still in need so visit our Web site. There is a wish list just about every day," Piercy said.
 
"This community is very generous," said Denning-Martin, expressing her gratitude in terms very similar to Piercy. "I don't think Nashville can be rivaled for philanthropy."