Non-profit hospitals commonly subsidize and organize community-based health programs — such as nutrition programs, medication assistance programs and other initiatives that promote health and health education throughout a community — as part of their outlined missions.
However, summaries of the programs and community benefits are often laden in confusing numbers with little explanation, and according to a new paper from Jackson Healthcare and Calvin Edwards & Company, there is a way hospitals can effectively showcase just how meaningful their charitable service programs are.
Issuing reports on charitable programs can increase a hospital's visibility and reputation within the community, and effective reports show that the community and those who help keep the programs running are achieving desired results and are not wasting money. "Community leaders and prospective financial donors want to see that their local hospital is addressing and improving the health of underserved people in their community," says Calvin Edwards, founder of CEC. "They want to see results."
When hospitals release the impacts of their different community programs, it should not just be statistics and charts. Instead, hospitals should prepare a well-outlined, well-versed report that will make both the community and donors feel as if the hospital is providing the maximum benefits. Here are four components of a successful hospital charitable program report.
1. Statement of impact. The statement of impact is the "home base," per se, of a hospital's community benefit program report. This is the document where any community member, donor, board of director, patient or other interested party could find answers to their questions and all pertinent information about a charitable program.
There are several elements within the statement of impact:
• Basic hospital information. This includes address, telephone number, website, primary hospital contact, email of the primary hospital contact and sponsorship type (i.e., how the hospital supports the program from financial and non-financial contributions).
• Charitable program information. Similar to the basic hospital information, the charitable program information includes the name of the program, where it is located, when it was founded, telephone number, website, primary program contact and email of the primary program contact. Additionally, the program should outline its legal structure (e.g., a program is a 501(c)(3) non-profit, a community benefit program of the hospital, etc.) and also provide the program's mission statement, purpose, description, target market and overall strategy of how the program will address a healthcare problem.
• Proportion of total program impact. This section is, for the most part, the meat-and-potatoes financial information of the hospital's charitable program. Jackson Healthcare and CEC recommend this section be divided into two main parts: hospital investment and total program contribution income.
Both parts identify how much money was given in financial contributions, gifts in-kind and professional services, and each section then provides a total amount (total hospital investment and total program contribution). To calculate how much of the program's impact on the community is attributable to the hospital's investment, executives can divide the hospital investment total by the program contribution income.
• Elements of impact. In a bulleted list, hospitals should outline the achievements of the program that were achieved during the fiscal year. For example, if a hospital charitable program is focused on health and wellness, it should elaborate how it brought health and wellness to the community with concrete facts and figures. "Administered 30 flu shots" and "organized 10 nutritional education events in the community" are clearly defined, measurable examples of "elements of impact."
2. Outcomes. The "outcomes" portion of a charitable investment report is the building block of the hospital program's mission and actually measures how much of the mission was achieved.
Hospitals explain each outcome, one by one, and for each outcome, there should be "indicators" and "comments." Indicators state the measurable results of a program's outcome, and the comments concisely describe how the outcome results were calculated, if applicable.
For example, a case study involving Toledo, Ohio-based health systems Mercy and ProMedica Health System was outlined in the paper. Here is an excerpt of how they filled out an outcome for their CareNet program, which aims to increase access to coordinated healthcare services for low-income and uninsured residents.
"Outcome 2: CareNet members receive coordinated specialty care in 39 distinct areas to meet their healthcare needs.
Indicator: Seventy-two percent of specialty referrals submitted to the CareNet office were filled.
Comments: Data is aggregated by the CareNet office through the Specialty Network database."
3. Impact story. The report's impact story is an anecdote, written by the hospital staff but about someone (patient, family member, community member, etc.) who has been personally and positively affected by the charitable program. Hospitals can start by describing the background of the person who was impacted, then explain how he or she became a part of the hospital's charitable program and conclude by emphasizing how the hospital's charitable program left an imprint or measurably benefited the highlighted subject. Direct quotations and photos are also recommended in this section.
4. Return on invested giving. Perhaps the most important section is the return on invested giving, which explains the monetary impact of all charitable funds within the program. There are six main elements that should be included in this space:
• Program leverage. Leverage is the degree to which a donor's investment is multiplied with other income (either cash or in-kind) by the service provider and other entities. Ultimately, this describes the investment that was made produces more income (financial and non-financial) than the direct monetary value.
• Value of services provided. The monetary value of charitable services provided can be calculated by using recognized commercial rates, although the value of services may be considered in qualitative terms.
• Benefit of services provided. Similar to the "outcomes" portion of the report, the benefit of services provided is more of a narrative of what was achieved in terms of financial outcomes.
• Cost of services provided. This is one of the easier figures to provide, as it is more straightforward than the others. The overall costs should include overhead expenses and even non-financial contributions, and generally the cost of services provided should align with the hospital program's income statement.
• Return on investment. ROI is one of the most sought-after business terms, and it certainly applies to non-profit ventures, too. Calculating ROI with non-profit hospital ventures is more difficult, however, because value is often a qualitative measure. Essentially, it is calculated by looking at the ratio of the value of services provided (as mentioned above) divided by financial contributions made. For example, a hospital breast cancer program could report the return on a $2,500 investment was $7,500 worth of breast cancer screenings. In this instance, the $7,500 in breast cancer screenings represents the screenings and all ancillary costs had the program existed in the commercial market.
• Cost per outcome. This measurement explains the costs to achieve a specific piece of the mission. It does not encompass the value of services provided, and it does not use the cost of services provided. Instead, it uses the costs of outcomes, which are directly tied to the success of the hospital program's mission.
To view more case studies on how to prepare a successful hospital charitable program report, click here (pdf) to view Jackson Healthcare's and CEC's paper.
However, summaries of the programs and community benefits are often laden in confusing numbers with little explanation, and according to a new paper from Jackson Healthcare and Calvin Edwards & Company, there is a way hospitals can effectively showcase just how meaningful their charitable service programs are.
Issuing reports on charitable programs can increase a hospital's visibility and reputation within the community, and effective reports show that the community and those who help keep the programs running are achieving desired results and are not wasting money. "Community leaders and prospective financial donors want to see that their local hospital is addressing and improving the health of underserved people in their community," says Calvin Edwards, founder of CEC. "They want to see results."
When hospitals release the impacts of their different community programs, it should not just be statistics and charts. Instead, hospitals should prepare a well-outlined, well-versed report that will make both the community and donors feel as if the hospital is providing the maximum benefits. Here are four components of a successful hospital charitable program report.
1. Statement of impact. The statement of impact is the "home base," per se, of a hospital's community benefit program report. This is the document where any community member, donor, board of director, patient or other interested party could find answers to their questions and all pertinent information about a charitable program.
There are several elements within the statement of impact:
• Basic hospital information. This includes address, telephone number, website, primary hospital contact, email of the primary hospital contact and sponsorship type (i.e., how the hospital supports the program from financial and non-financial contributions).
• Charitable program information. Similar to the basic hospital information, the charitable program information includes the name of the program, where it is located, when it was founded, telephone number, website, primary program contact and email of the primary program contact. Additionally, the program should outline its legal structure (e.g., a program is a 501(c)(3) non-profit, a community benefit program of the hospital, etc.) and also provide the program's mission statement, purpose, description, target market and overall strategy of how the program will address a healthcare problem.
• Proportion of total program impact. This section is, for the most part, the meat-and-potatoes financial information of the hospital's charitable program. Jackson Healthcare and CEC recommend this section be divided into two main parts: hospital investment and total program contribution income.
Both parts identify how much money was given in financial contributions, gifts in-kind and professional services, and each section then provides a total amount (total hospital investment and total program contribution). To calculate how much of the program's impact on the community is attributable to the hospital's investment, executives can divide the hospital investment total by the program contribution income.
• Elements of impact. In a bulleted list, hospitals should outline the achievements of the program that were achieved during the fiscal year. For example, if a hospital charitable program is focused on health and wellness, it should elaborate how it brought health and wellness to the community with concrete facts and figures. "Administered 30 flu shots" and "organized 10 nutritional education events in the community" are clearly defined, measurable examples of "elements of impact."
2. Outcomes. The "outcomes" portion of a charitable investment report is the building block of the hospital program's mission and actually measures how much of the mission was achieved.
Hospitals explain each outcome, one by one, and for each outcome, there should be "indicators" and "comments." Indicators state the measurable results of a program's outcome, and the comments concisely describe how the outcome results were calculated, if applicable.
For example, a case study involving Toledo, Ohio-based health systems Mercy and ProMedica Health System was outlined in the paper. Here is an excerpt of how they filled out an outcome for their CareNet program, which aims to increase access to coordinated healthcare services for low-income and uninsured residents.
"Outcome 2: CareNet members receive coordinated specialty care in 39 distinct areas to meet their healthcare needs.
Indicator: Seventy-two percent of specialty referrals submitted to the CareNet office were filled.
Comments: Data is aggregated by the CareNet office through the Specialty Network database."
3. Impact story. The report's impact story is an anecdote, written by the hospital staff but about someone (patient, family member, community member, etc.) who has been personally and positively affected by the charitable program. Hospitals can start by describing the background of the person who was impacted, then explain how he or she became a part of the hospital's charitable program and conclude by emphasizing how the hospital's charitable program left an imprint or measurably benefited the highlighted subject. Direct quotations and photos are also recommended in this section.
4. Return on invested giving. Perhaps the most important section is the return on invested giving, which explains the monetary impact of all charitable funds within the program. There are six main elements that should be included in this space:
• Program leverage. Leverage is the degree to which a donor's investment is multiplied with other income (either cash or in-kind) by the service provider and other entities. Ultimately, this describes the investment that was made produces more income (financial and non-financial) than the direct monetary value.
• Value of services provided. The monetary value of charitable services provided can be calculated by using recognized commercial rates, although the value of services may be considered in qualitative terms.
• Benefit of services provided. Similar to the "outcomes" portion of the report, the benefit of services provided is more of a narrative of what was achieved in terms of financial outcomes.
• Cost of services provided. This is one of the easier figures to provide, as it is more straightforward than the others. The overall costs should include overhead expenses and even non-financial contributions, and generally the cost of services provided should align with the hospital program's income statement.
• Return on investment. ROI is one of the most sought-after business terms, and it certainly applies to non-profit ventures, too. Calculating ROI with non-profit hospital ventures is more difficult, however, because value is often a qualitative measure. Essentially, it is calculated by looking at the ratio of the value of services provided (as mentioned above) divided by financial contributions made. For example, a hospital breast cancer program could report the return on a $2,500 investment was $7,500 worth of breast cancer screenings. In this instance, the $7,500 in breast cancer screenings represents the screenings and all ancillary costs had the program existed in the commercial market.
• Cost per outcome. This measurement explains the costs to achieve a specific piece of the mission. It does not encompass the value of services provided, and it does not use the cost of services provided. Instead, it uses the costs of outcomes, which are directly tied to the success of the hospital program's mission.
To view more case studies on how to prepare a successful hospital charitable program report, click here (pdf) to view Jackson Healthcare's and CEC's paper.
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