Knapp Medical Center follows a healthy business strategy

“No business today can stay in business if it doesn’t make money,” said  James Summersett III.  The President /CEO of Knapp Medical Center explained that a not-for-profit hospital like Knapp is in the business of delivering compassionate competent medical care.  At the same time, it must be as cost conscious as other businesses.

“People mistakenly conclude that we’re not supposed to make a profit.  The difference between a non-profit and a for-profit is what’s done with money that’s made.  At Knapp, all the money goes back into the hospital’s operations,” he said.    

As one of two non-profit, community-based hospitals in the Valley, Knapp applies revenue above costs to improve the hospital from facility upgrades and  buying new equipment to raising salaries and expanding services. Reinvesting that revenue, Knapp Medical Center has evolved into a 233 bed hospital with 1,000 employees.  The hospital, which opened in 1962 , is the largest private employer in the mid-Valley.

“Look at the jobs we provide.  Our salaries total $42 million,” Summersett said.  Applying national statistics, each of the hospital’s 1,000 employees creates two more community jobs which may be in home health, pharmaceuticals, or durable medical equipment.  Additionally, Summersett said that every one dollar spent by a hospital supports over $2 of additional business activity, a significant shot in the mid-Valley’s economic arm.  Local suppliers range from Maverick Industrial (institutional laundry) and Security Depot to  JIII Concrete Co. and VECO Printing.  Because Knapp is not part of larger hospital system, more money stays in the mid-Valley community.  

Knapp is the only hospital in the mid-Valley, between Highways 77 and 281, yet it competes with hospitals in McAllen and Harlingen.   “One of important things we look at in marketing is that we enjoy a 60 percent share of the market,” Summersett said.   Knapp admits 13,000 inpatients annually and charts 70,000 outpatient visits.  Annually, 2,000 babies are born at Knapp and 4,000 surgeries are performed.   He noted that losing one percent market share means losing 15 jobs in the hospital.

“The point is that it’s very important to have a hospital in your community that is comprehensive and healthy financially.  It creates revenue for the community and residual revenue for other providers,” said Summersett.  The San Antonio native, who has been a health care administrator for 27 years, is a Fellow of the American College of Healthcare Executives and holds an M.S. in Hospital and Health Administration.

“We look to our local chamber of commerce to promote a business environment that helps our business and other businesses sustain their economic vitality,” Summersett said. A pro-business climate enables businesses like Knapp to operate in a profitable manner, and makes Weslaco a preferred place to live both for health care employees and employees of other businesses.

Summersett is a licensed hot-air balloon pilot and is ranked among the top competitive pilots in the U.S.