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Perspective: Impoundment and Crusader

Crusader Health System, West State Street campus.
crusaderhealth.org
Crusader Health System, West State Street campus.

In 1974, two years after the Crusader Clinic opened on West State Street, President Nixon impounded all discretionary federal funds. That included the Illinois Regional Medical Program grant monies that initially supported Crusader. Faced with closure, board members Joe Terranova and Dr. John McHugh met with the Rockford township supervisor, Peter Perrecone and Rockford’s first Democratic mayor, Robert McGaw, to discuss saving the clinic.

 

Over 30 billion in federal revenue sharing money had just been released in January to the states, counties, cities and townships. These unexpected funds had not yet been budgeted or designated to any set purpose in local governments. Terranova and McHugh explained to the supervisor and the mayor that Crusader would close if it could not receive revenue sharing funds. Pete Perrecone asked “how much money was needed?” $160,000 was the answer.

 

As Randy Locke, then assistant Winnebago County Public Health Department Director relates, Pete looked at Mayor McGaw and said, “Bob, I'll take half if you take half.” Mayor McGaw agreed, and Crusader Clinic was saved. It was a remarkable local government collaboration that saved the clinic.

 

Today, Crusader Community Health has a budget of more than 30 million and serves over 60,000 patients annually, about one in every five persons in the region. If another impoundment happened today, would local government leaders be able to save the clinic?

 

I'm John Frana, and that's my perspective.

John Frana is currently the President of the Center for Education and Training Reform. The Center’s first project is to pass the STOP Act (Student Tax Option Act) as rational solution to the student loan problem which looms as the next fiscal crisis in the American economy.