All of the clinic’s foundations pivoted to allow money to be used for general operations rather than requiring the clinic to spend the money in specific ways, which was a big factor in being able to stay afloat, Royal said.
“Currently, because of the federal support, we’ve been able to do some future planning,” Royal said. “So we think through 2020 we’re looking pretty (good). We’re forecasting 2021, and we’re nervous about that.”
Revenue is the other piece of the clinic’s funding pie. Because of the novel coronavirus, the clinic lost about 25% of revenue this year. The clinic also had to move its annual Soup for the Soul event online, which typically brings in $200,000 for the clinic.
“Because our payer mix has always been so poor and we could never support ourselves on our revenues, we’ve always had to get creative in keeping the doors open,” Royal said. “The grants, donations and all the fundraising has been what fills the hole.”
If revenue doesn’t increase in 2021, the clinic will have to go back to donors and grants for funding, a strategy that is hard to rely on long term.
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