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Overview

Healthcare in Montezuma County -
A look at the Past, the Present and the Future

As we begin to examine healthcare in the area, one must not only look to the future but take a glance into the past and consider how the local hospital organization has evolved.

History of Hospitals in Montezuma County

1914 to 1940

Dr. Emil E. Johnson converted two cottages into a hospital on the site now occupied by the Best Western Turquoise Motor Inn. Dr. Johnson’s family lived in part, with his office and an eight bed hospital occupying the remainder. His wife was a nurse and an anesthesiologist. In 1940 Dr. Johnson had a stroke and the hospital was closed for about five months.

1940 to 1942

Dr. Girod re-opened the hospital. He operated the hospital until he was called to active duty in January 1942.

1942 to 1948

Dr. Johnson returned to Cortez and, with the help of the County Commissioners, kept the hospital open during the war. Dr. Speck, Dr. Calkins and Dr. Lilla worked in the hospital during the war.

In the spring of l945 the citizens of Montezuma and Dolores Counties recognized that the current facility would not serve the future needs of the two counties. The Lions Club took on the project of raising money to build a new hospital. The drive had great community support and by early 1948 enough money was raised to build the hospital located on South Broadway, currently the Johnson Building. The people in the community were very proud that they were able to raise the necessary money to build the hospital without government support.

1948 to 1950

The new facility, (Southwest Memorial Hospital), opened in May 1948 and was dedicated as a memorial to the veterans of Montezuma and Dolores Counties who were killed in World War II. (The original plaque with the names of these men is located just inside the main entrance of the current hospital.)

At that time the hospital had no official corporate structure. It was not-for-profit and non-governmental. A governing board was elected. Only those who had donated to the building fund were eligible to vote.

Realizing that they needed operational expertise, the board contracted with a Lutheran sect from Alamosa, Colorado to operate the hospital. Within two years disagreements between the administration and the board brought an end to this management arrangement.

1950 to 1977

The locally elected board assumed control of the hospital and hired a series of administrators who oversaw the hospital’s daily operations. Through the years, the hospital prospered and developed a nursing home in 1957. In 1971, the nursing home became Vista Grande Nursing Home and occupied its present building on Mildred Road. For the next six years, Southwest Memorial Hospital and Vista Grande Nursing Home were operated separately.

In the mid -1970’s the board contracted with Hospital Corporation of America (HCA) for professional management of the hospital. (HCA was later divided into a hospital management division called Quorum Health Resources which currently manages Southwest Memorial Hospital, and an owned-hospital division, which was later merged into HCA-Columbia.)

1977 to present

The hospital grew and by 1977 it was obvious that the community had outgrown the facility. It was also obvious that a different structure was needed. A system was needed which could provide funds during those times when expenses exceeded revenues and for acquiring expensive modern medical equipment needed to serve the needs of the community.

The Federal government, through the Hill-Burton Act, provided funds for construction of hospitals. These funds were not loaned in a traditional sense. Hill-Burton hospitals assumed an obligation to provide a designated amount of indigent healthcare over an extended period of time. A group of local citizens and the hospital board arranged through this program to obtain funding for construction of a new hospital immediately adjacent to the new Vista Grande Nursing Home facility. The parcel of land had previously been donated to Southwest Memorial Hospital.

Once funds for construction were secured, these concerned citizens petitioned the County Commissioners to establish a special district to provide tax money for the operation of the hospital. A service plan was approved by the commissioners; an election was held to establish the district and elect a board of directors; and the Montezuma County Hospital District was formed. One of the first acts of the new board was to issue $1,446,000 in revenue bonds to fund hospital and nursing home operations. (Unlike general obligation bonds, revenue bonds do not require a vote of the taxpayers. The "collateral" for the bonds is the net revenues generated through operations.)

During the early years district taxes kept the hospital in operation. Due to high costs and low reimbursements the nursing home was a financial drain on the hospital. In the 1990’s the nursing home lost $230,000 to $300,000 per year. Annual tax revenues just about equaled that amount. The hospital was able to generate enough excess revenues to invest in new and replacement equipment needed to serve the expanding needs of its constituents. During the late 1980’s through the mid-1990’s net revenues improved and the hospital was on solid financial ground.

 



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1311 N. Mildred Rd. • Cortez, Co, 81321
Main Hospital: 970-565-6666 • Emergency Room: 970-564-2025