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Thursday, October 23, 2014

Location®, Location®, Location® -- We ® Family

From HL7's latest available Form 990 (pdf, IRS non-profit organization annual information return), publicly available from I was simply curious to know more about HL7 as an organization, in light of my recent post on them. Pretty interesting stuff.

HL7 ("Health Level Seven International, Inc") reported $3,601,644 in revenue on this latest information return. They paid a total of $2,197,387, comprised of [1] CEO compensation ($451,873) and, [2] $1,745,514 to their Executive Director's closely-held private for-profit management firm -- 61% of revenue.

The CEO apparently lives in San Diego, where I guess he works from home for about 12 minutes per day. Part of his comp package was that of $95,090 "Bonus and Incentive" pay. Notwithstanding that HL7 reported a loss of $853,810 for the year.


Or, "Suites." 222, 225, and 227 respectively, to be precise. I now can't get Dolly Parton's old "Two Doors Down" out of my head.

The other AMG Principal, Richard Correll, is President and CEO of CHIME. There are two IRS 990's for CHIME, the main organization (pdf), and the "CHIME Foundation" (pdf). Mr. Correll reports working 35 hours per week for CHIME, and 4 hours per week for the Foundation -- apparently pro bono.

CHIME seems to have received $2,915,000 from "related organizations" -- Part VIII, page 9, section 1(d), and Schedule I, Part II, item 1(d).

Uh, that would be the CHIME Foundation. See Part IV, Page 4, line 35b and Part IX, Page 10, line 1(a).

CHIME itself lists $2,560,519 in "Fees for services (non-employee)" on Part IX, Page 10 ("Statement of Functional Expenses"), line 11(a) -- "Management." 

Page 6, Section C "Disclosure" line 20 simply notes that the "books and records of the organization are kept by "ASSOCIATION MANAGEMENT GROUP 3300 WASHTENAW AVENUE STE 225 ANN ARBOR, MI"

Part VII, Section B, Page 8 ("Independent Contractors") is blank.

I've been looking at a dozen or so other healthcare space IRS 990's today looking for a bit of context. AAFP of Wisconsin is a cutie, with a Mom & Pop mgmt outsourcing firm sucking up half their gross revenue (Their ED is also a Principal in the mgmt firm).

Here's another. "National Association for Healthcare Quality (NAHQ)."

So, the corporate HQ of NAHQ (and the dozens of other non-profits managed by this firm) is essentially an AMC mail drop?

I know what I'm gonna hear, in harrumphingly indignant (and perhaps quite profane) pushback terms -- "everybody does it, and, it's all legal.

Maybe so. 

The "beauty" of this apparent Three Card Monty M.O. is that the "outsourced" ED's don't have to disclose their particular vig component of these "management fees." Privately-Held, Thank You Very Much. We Don't Disclose Confidential Salary Information.

The lowest level individual HL7 dues are $775, btw. $1,400 if you're a provider/organization grossing less than $1m/yr.

Most of these non-profits hold posh conferences in toney locales every year (I went to six last year), run to a significant degree on the free-labor backs of battalions of eager volunteers. The Trustees, Board Members, and Executive Management all swoop in and out VIP, probably all-expenses paid, to gather amiably in roped-off front row seating at the Keynotes before moving on to VIP-only luncheons and receptions.

Q: Re: "context" -- What are the latest data on front-line care doc pay?

2014 data.


HL7 Board, latest available Annual Report.

Not too many forks in this family tree, 'eh? BTW, RTI (Research Triangle Institute), while nominally a 501(c)(3) (contributions are tax-deductible) is a 3/4 of a billion dollar ("Beltway Bandit?") enterprise that paid its CEO $2.15m according to their latest available 990 (pdf).

ONC brain drain hits fever pitch

The exodus of top-tier ONC leadership continued late Thursday when Health and Human Services revealed that national coordinator Karen DeSalvo, MD was stepping out of her post — a surprise followed quickly by the news that deputy national coordinator Jacob Reider, MD is leaving as well.

The departures of ONC’s top two executives come as the office is sculpting two critical plans for its future: the 10-year interoperability roadmap and its next Federal Health IT Strategic Plan.

What’s more, DeSalvo and Reider are merely the latest in a string of high-profile ONC employees leaving.

During the last few months, in fact, chief nursing officer Judy Murphy accepted a post with IBM and chief science officer Doug Fridsma, MD resigned to take the helm at the American Medical Informatics Association, while chief privacy officer Joy Pritts and the director of ONC’s consumer eHealth program left without detailing immediate career plans.

The fact that so many executives are leaving ONC raises a number of questions: who will champion the interoperability roadmap and strategic plan? What does all this mean, if anything, for the meaningful use program moving forward? Will HHS Secretary Sylvia Burwell appoint a new permanent national coordinator in the near future and, if so, who?...



More to come...

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