In an effort to secure financial resources from an off island non-profit organization, the LBJ Medical Center has set aside funding in the new fiscal year 2015 to work on getting its own not-for-profit exemption from the federal government in order to establish a hospital charitable foundation.

In its FY 2015 budget, the hospital has allocated $75,000 for a “501c filing for LBJ non-profit status, and to hire off island contractors to conduct training for professional development of staff” according to the budget document.

When questioned about the 501c filing during the budget hearing, the hospital’s chief financial officer, Pauline Gebauer explained that a 501c is to set up an LBJ foundation, “so that we can ask for more funding from outside people, besides [funds] from the government. We put a little money in there to try and begin the process” for the 501c application.

She explained that LBJ also does not have a legal counsel at this time, therefore the medical center may have to work with the Attorney General’s Office to get the 501c application moving forward in FY 2015, or pay for an attorney to handle the application.

“So what we’re really trying to do is to find other ways to get funding from non profit groups — for example the Lyndon Baines Johnson Foundation in Texas. We’re hoping… why not write a proposal and ask for some [financial] support,” she said, adding that the hospital is, after all, named after a former U.S. President.

The LBJ Foundation “can offer the hospital funding for certain things — not just open funding — such as technical support training for staff. Something more specific and focused,” Gebauer said.

A hospital foundation can also seek funding from the Bill and Melinda Gates Foundation, which gives out millions of dollars to Africa and other places. “Why not ask for some money for the hospital,” she said and pointed out that the 501c proposal needs to first go through the LBJ board.

She reiterated that the foundation — if it gets a 501C status — can secure additional funding from non-profit sources, but at the same time, receive annual local and federal government funds.

In late February last year, then board chairman Sandra King-Young announced that the newly reconstituted hospital board passed a motion to establish a Charitable Hospital Foundation for the hospital so they can raise funds to carry out their services.

However, there have been changes to the membership of the board since early last year, which includes King-Young stepping down from the board to take up a new post as director of the ASG Medicaid Office.