A Brief History of Southwest Memorial Hospital

Southwest Memorial Hospital is rich in history. Here are some of the highlights from 1914 when the facility first opened to the present.

1914 – 1940
Dr. Emil E. Johnson converted two cottages into a hospital on the site that is now occupied by the Best Western Turquoise Inn on Main Street in Cortez. Dr. Johnson’s family lived on the premises where he had an office and an eight bed hospital. His wife was a nurse and an anesthetist. In 1940, Dr. Johnson had a stroke and the hospital was closed for about five months. 

1940 – 1942
Dr. Girod re-opened the hospital and operated it until he was called to active duty in January of 1942. 

1942 – 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 1945 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 1948 enough money had been raised to build a hospital on South Broadway, currently the Johnson Building. The people in the community were very proud that they were able to raise the necessary funds to build a hospital without government support. 

1948 – 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 – 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 a building on Mildred Road. For the next six years, Southwest Memorial Hospital and Vista Grande Nursing Home were operated separately.  

In the mid 1970s 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 – Present
The hospital grew and by 1977 it became obvious that the community had outgrown the facility; a new structure was needed. A system was also needed to provide funds during times when expenses exceeded revenue and for the acquisition of expensive modern medical equipment needed to serve the community. 

Through the Hill-Burton Act, the Federal government provided funds for construction of hospitals that would assume the responsibility of caring for patients without financial resources. A group of local citizens and the hospital board arranged to obtain funding through this program for construction of a new hospital adjacent to the Vista Grande Nursing Home. The land had previously been donated to Southwest Memorial Hospital by the Carpenter family.  

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 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.  

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 1990s 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 the community. During the late 1980s through the mid-1990s net revenues improved and the hospital was on solid financial ground.

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