Clinic keeps finances healthy despite huge volume.

NON-PROFITS

BEST FINANCIALLY MANAGED

VALLEY COMMUNITY CLINIC

THE Valley Community Clinic has a patient load that would leave some hospitals gasping.

In 2003-04, the small North Hollywood facility treated 47,000 people, ranging from infants to seniors, for everything from primary care examinations to dentistry.

"That's a lot of people coming through the door," said Paula Wilson, the facility's interim chief executive officer. "And in terms of raising money to take care of them it's quite a challenge, particularly as the state budget shrinks and the stock market shrinks so donations shrink," she said. "It's a real challenge."

The clinic, a 501(c) 3 that actually opened its doors as a counseling center, soon expanded to include a full range of free and low-cost medical and health services.

Ninety-five percent of patients are working, but most have incomes below state poverty guidelines.

And no one is ever turned away due to an inability to pay, which means the clinic--which has an annual budget of $7.5 million and a workforce of 75 full-time-equivalents--spends from 60 to 65 percent of its funding on personnel costs.

"It's very tricky, but it's what we have to do," said Wilson, a veteran of 13 years at the agency who makes $75,000 annually. "The trick is to have incredible personnel who really watch expenses and really pay attention to productivity."

More than 60 percent of the clinic patient load is Latino, which has also attracted some funding from major California philanthropies seeking to reach underserved populations.

Major donations in the past year include more than $100,000 each from the Ahmanson Foundation, the California Endowment, the Los Angeles Care Health Plan, and the Ralph M. Parsons and W.M. Keck foundations.

The clinic has consistently maintained its budget "in the black" for the last 14 years.

The clinic's financial management team has successfully run a capital campaign that raised $5 million in two years, enough to purchase the facility's current building and an expansion that will allow the clinic to double in size.

In May, a "Laughter Is the Best Medicine" fundraiser hosted by actor Hector Elizondo raised $89,000 for a new pediatrics ward at the clinic.

"In the health care crisis we're now involved in, I think they are doing an excellent job," said Valley businessman Marvin Selter, a veteran of many charitable and philanthropic campaigns. "Their leadership is well coordinated and well focused."

The kind of cost conscious management used by the clinic is becoming increasingly important throughout the industry, experts said.