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e-Newsletter
March 2004 |
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In This Issue: Healthcare
Conversion Legislation Stanford
Social Innovation Review
Healthcare
Conversion Legislation The privatization of nonprofit health plans, systems and hospitals has been an important resource for philanthropy in the U.S. In many states, legislation exists which requires that the proceeds of such a conversion be conveyed to a nonprofit charitable foundation. Enforced by the state attorney general, this legislation has resulted in the creation of over 160 new foundations with assets of just over $16.4 billion*. Until 2002, New York State had no such legislation. In 2002, the NYS legislature approved the Health Care Workforce Recruitment and Retention Act which included a provision for the conversion of Empire Blue Cross Blue Shield with 95% of the proceeds directed to the state budget to pay the salaries of healthcare workers. Instead of endowing the community to serve the most needy, the state has passed legislation which claims that money as a public asset and allows it fill the gaps in our shaky state budget. On Wednesday, March 10, the NY Assembly passed a comprehensive healthcare conversion bill. Introduced by Assembly Member Pete Grannis, chair of the insurance committee, the bill would require 100% of the proceeds of any nonprofit insurer conversion to be transferred to an independent foundation charged with a broad mission to address the unmet healthcare needs of New Yorkers. If it passes in the Senate, and survives a possible veto by Governor Pataki, this bill could open up the healthcare conversion process to public input and oversight by the attorney general. It would allow the State Assembly and the Senate to allocate 100% of the proceeds of such sales to charitable foundations for the public good. The fate of Empire Blue Cross Blue Shield whose conversion was approved in 2002, is still in question due to a lawsuit filed by Consumers Union. However, there is another conversion in the works for HIP Health Plans, the state’s largest remaining nonprofit insurer, with over 1 million members in the NY metropolitan area. When the state government appropriates the proceeds of these conversions to shore up the budget, the loss of that money is felt by funders, nonprofits and citizens in need. The new bill has been referred to the Senate Health Committee. The bill as passed by the Assembly and legislative history are available online at: http://www.assembly.state.ny.us/leg/?bn=A6849
The Public Policy Committee of the Funders Alliance will be tracking the progress of the bill through the NYS Senate. To contact members of the Senate Health Committee, and register your support for this new legislation refer to the Funders Alliance public policy web page http://www.grantmakers.org/FundersUpstate. Our private foundation members can rely on the Funders Alliance to express our collective desire for the proceeds of future conversions to be dedicated to the benefit of those in need through charitable endowment. *Grantmakers
in Health, A Profile of New Health Foundations, 2003.
NYS Budget Concerned about the 2004 NYS budget? What will its impact be on the nonprofits you fund? The anxiety over an on-time budget may be outweighed by the issues of legislative fiscal responsibility raised by the proposed budget and how programs and services will be funded. For some general statistics on how New York State stacks up with other states and where the money comes from, visit Close-Up published by the CGR Institute for Competitive State Government at http://www.competitivenys.com/articles/. For more on NYS budget reform, visit the Citizens Budget Commission web site at http://www.cbcny.org/. The Citizens Budget Commission is a nonpartisan, nonprofit civic organization devoted to influencing constructive change in the finances and services of New York City and New York State government.
Stanford Social Innovation Review As members of the Funders Alliance of Upstate New York, you are eligible for a 30% subscription discount to the Stanford Social Innovation Review. A publication of the Center for Social Innovation at the Stanford Graduate School of Business, the Review provides the best in research and practice-based knowledge to help the people who do the important work of improving society do it even better. This quarterly publication is full of new ideas about nonprofit management, philanthropy and corporate citizenship. To subscribe at the discounted rate, go to http://ssireview.com/subscribe/index.php?promo=rgf. For more information about the magazine, visit their web site at www.ssireview.com.
Events Calendar Conference
Call: An
Update on HR7 and CARE act Ellen Dadisman, Vice President, Tuesday, March 23, 2004, 1:00-2:00 p.m. For planning purposes,
registration is required by noon on March
19. Funders
Alliance Roadshow: The
Changing Face of New York State: Strategies for the Future May 11, 2004, 12:00-1:30pm, Sherwood Inn, Skaneateles NY Details to be posted on
our website soon Healthy
Families: Annual Meeting: June 10, 2004 Speaker: Gwen Robinson, Annie E. Casey Foundation
l
Noon-lunch and brief Rochester Grantmakers
Forum member meeting l
12:30pm Keynote Address l 2pm-3:30pm Interactive Workshop with Gwen Details to be posted on
our website soon Funders
Alliance Conference: September 20-21, 2004 Ramada Inn Lakefront, Geneva NY Plenary speaker: Lew Feldstein, NH Charitable Foundation, Better Together: Restoring the American Community Details to be posted on our website soon -------- Questions or
Feedback? Please contact us at: newsletter@grantmakers.org Is their
someone in your office who is not receiving this e-newsletter but would like
to? Please have them contact Phil.Peters@grantmakers.org This
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If you are having trouble viewing this document please contact us or
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