US manufacturing giant Georgia-Pacific has donated $500,000 to a trio of rural Alabama hospitals. The donation comes amid a worrying trend of rural hospitals across the US shuttering their operations, with several others operating in the red.
Three rural hospitals receive Georgia-Pacific donation
Georgia-Pacific, via its Brewton Containerboard and Alabama River Cellulose facilities, has made a sizable donation to three hospitals in rural Alabama. Per the official announcement, the selected hospitals will split $500,000 as the manufacturing giant advances its CSR goals.
Both the Monroe County Hospital and the D.W. McMillan Hospital received $225,000 each, while Atmore Community Hospital received $50,000.
In an interview with Charity Journal, Georgia-Pacific disclosed that the donations came under Alabama’s Rural Hospital Investment Program (RHIP). RHIP is a state-backed funding initiative designed to keep struggling rural hospitals running, using tax incentives to attract private donations.
“We donated the maximum amount allowed under the program guidelines and directed the funding to hospitals serving the communities closest to our Brewtonand Alabama River mills,” said a Georgia-Pacific spokesperson.
The donations sparked widespread commendations across the board, with the recipient hospitals underscoring Georgia-Pacific’s generosity. Meanwhile, Jeff Vermilyea, VP, Alabama River Cellulose, noted the donation was an easy choice for the company with extensive roots in the region.
“Supporting our local hospitals is an investment in the people and families who make our community strong, and strong communities start with access to quality healthcare,” added Wes Greeson, VP, Brewton Operations.
Currently, Georgia-Pacific employs over 12,000 individuals in Alabama, accounting for nearly $800 million in wages and benefits.
Alabama rural hospitals face torrid patch
Georgia-Pacific’s donation comes amid a turbulent period for rural hospitals in Alabama. At the moment, 84% of Alabama’s rural hospitals operate at a loss, with the cost for staffing, equipment, and supplies rising faster than reimbursements from insurers, private donations, and government programs.
Industry leaders have termed it a “death spiral” with losses reducing services, which in turn reduces patient volume, worsening losses. Several Alabama rural hospitals have shut down their operations, while the most resilient are cutting key services like maternity care.
The implication is grim for rural dwellers with a streak of closures turning entire regions into healthcare deserts, forcing residents to travel long distances for care.
While RHIP has recorded a measure of success, eligibility is determined by each hospital’s financial need, which the program ranks on a tiered basis. Georgia-Pacific donated the maximum amount allowed under the program guideline and will receive a dollar-for-dollar state tax credit.