2018-11-14T21:15:10-07:00 2017-12-31 990 2017-01-01 940359340 California Medical Association CALI 9164445532 1201 J Street Suite 200 Sacramento CA 95814 Lance R Lewis Chief Operating Officer 9164445532 2018-08-15 207.12.183.189 2017 2019-02-21 02:37:17Z Lance R Lewis 1201 J Street Suite 200 Sacramento CA 95814 18376366 0 X www.cmadocs.org X 1856 CA The mission of the California Medical Association is to promote the science and art of medicine, the protection of public health, and the betterment of the medical profession. 37 32 106 1600 65328 0 3088586 4610605 13621288 13316906 -135451 -35880 643107 404574 17217530 18296205 0 0 0 0 9275443 9909090 0 0 0 7003918 7503592 16279361 17412682 938169 883523 31138976 31567785 18488889 16779548 12650087 14788237 The California Medical Association (CMA) is a non-profit corporation formed to promote the science and art of medicine, the protection of public health, and the betterment of the medical profession. 0 0 In 2017, CMA successfully secured through the California state budget over $1 billion to improve provider payments and graduate medical education. Despite the voter-approved tobacco tax (Proposition 56) that was earmarked to improve provider payments, Governor Jerry Brown attempted to redirect the tobacco tax revenues to support the state's General Fund obligations. Restoring Prop 56 funds was CMA's #1 budget priority, and we engaged the legislature through earned media, digital advertising, grassroots outreach and direct advocacy. The legislature heeded CMA's leadership and advocacy-both houses rejected the Governor's proposal and laid out a different framework for appropriating tobacco tax revenues in the final budget. The final budget, which Governor Brown signed, provided over $1 billion ($546 million in state funds, with a federal match) to improve provider payments, nearly $750 million of which will be available to physicians. In 2017, CMA also protected the self-governance rights of hospital medical staffs-the physician-led entities responsible for the quality of patient care in hospitals. CMA has been assisting the physicians of Tulare Regional Medical Center (TRMC), where the medical staff is engaged in an unprecedented legal battle with hospital administrators. This lawsuit poses an "existential threat" to medical staff and physician independence, and is critically important to protect medical staff self-governance rights and the physician-patient relationship. The case stemmed from actions taken in 2016, when the TRMC board of directors voted to terminate its medical staff and create new medical staff bylaws in secret without input from physicians at the hospital. TRMC dictated leadership and standards of medical care, seized control of the disciplinary process without legal or factual justifications, and prohibited the terminated medical staff from voting on medical staff matters or holding leadership positions. CMA strongly believes medical decision-makers should be insulated from influence by hospital administrative staff, whose primary concern is the administrative needs of the hospital and its profitability. CMA filed pre- and post-trial amicus briefs in this case, provided financial support, and organized fundraising from medical staffs and the American Medical Association to the CMA Legal Defense Fund for the case. Because of this case, CMA has increased the capacity of the legal defense fund to protect or establish important legal rights of physicians to practice their profession and assure high-quality medical care. From Graham-Cassidy to the American Health Care Act, CMA helped defeat irresponsible federal legislation that would have harmed patient access to physicians and decreased health care coverage. In preparation for the federal health care reform debate, CMA adopted a set of principles to guide the association in its advocacy. Also at the federal level, CMA made sure that the Centers for Medicare & Medicaid Services (CMS) heard and understood how physicians would be impacted by proposed 2018 Medicare reporting requirements. CMS listened and made changes to significantly reduce administrative burdens for physician practices, including providing additional accommodations for small and rural practices, allowing virtual groups, and providing bonus points for physicians who treat complex patients, such as dual eligibles, who constitute nearly 40 percent of California's Medicare population. CMS now estimates that 97 percent of eligible physicians will avoid a penalty in 2020 for the 2018 reporting year, while 73 percent of physicians will be exempt from the new Medicare Merit-Based Incentive Payment System (MIPS), including those affected by recent natural disasters. CMA continues to urge CMS to further simplify the program. 0 0 0 0 0 1 0 1 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 X 58 0 1 106 1 1 1 0 0 0 1 1 0 X 37 32 1 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 CA X Stephanie Valencia 9164445532 1201 J Street Suite 200 Sacramento CA 95814 Steven E Larson MD Immediate Past President through Oct 2017 1 1 X X 56333 0 0 Ruth E Haskins MD Past President from Oct 2016-Oct 2017 1 1 X X 93033 0 0 Theodore M Mazer MD President from Oct 2017-Oct 2018 1 1 X X 88800 0 0 Lee T Snook MD Speaker of the House 1 1 X X 53104 0 0 Tanya W Spirtos MD Vice Speaker of the House 1 1 X X 32900 0 0 David H Aizuss MD President Elect 1 1 X X 59149 0 0 Robert E Wailes MD Chair of the Board 1 1 X X 33487 0 0 Shannon Udovic-Constant MD Vice Chair of the Board 1 1 X X 0 0 0 William Tseng MD Trustee 1 0 X 0 0 0 Marti F Baum MD Trustee 1 0 X 0 0 0 David Friscia MD Trustee 1 0 X 0 0 0 James J Strebig MD Trustee 1 0 X 0 0 0 Peter S Richman MD Trustee 1 0 X 0 0 0 Ronald C Thurston MD Trustee 1 0 X 0 0 0 Ranjit S Rajpal MD Trustee 1 0 X 0 0 0 Ralph Kingsford MD Trustee 1 0 X 0 0 0 Donaldo Hernandez MD Trustee 1 0 X 0 0 0 Kenneth Blumenfeld MD Trustee 1 0 X 0 0 0 Thomas M Dailey MD Trustee 1 0 X 0 0 0 Mark H Kogan MD Trustee 1 0 X 0 0 0 Simpson K So MD Trustee 1 0 X 0 0 0 James Cotter MD Trustee 1 0 X 0 0 0 Douglas P Brosnan MD Trustee 1 0 X 0 0 0 Margaret Parsons MD Trustee 1 0 X 0 0 0 Barbara Weissman MD Trustee 1 0 X 0 0 0 C Freeman MD Trustee 1 0 X 0 0 0 Damodara Rajasekhar MD Trustee 1 0 X 0 0 0 Christopher Hancock MD Trustee 1 0 X 0 0 0 Nuriel Moghavem MD Trustee 1 0 X 0 0 0 Diana R Shiba MD Trustee 1 0 X 0 0 0 Catherine A Gutfreund MD Trustee 1 0 X 0 0 0 Jeffrey Klingman MD Trustee 1 0 X 0 0 0 Adam Dougherty MD Trustee 1 0 X 0 0 0 Sergio R Flores MD Trustee 1 0 X 0 0 0 Joanna Tan MD Trustee 1 0 X 0 0 0 Robert Bitonte MD Trustee 1 0 X 0 0 0 Jack Chou MD Trustee 1 0 X 0 0 0 Sion Roy MD Trustee 1 0 X 0 0 0 Rachel Ekraireb Trustee 1 0 X 0 0 0 Dustin E Corcoran Chief Executive Officer 35 2 X 681027 0 63767 Lance R Lewis Chief Financial Officer 35 1 X 341022 0 52363 Francisco J Silva Senior VP and General Counsel 35 0 X 293638 0 41119 Jay Hansen Chief Strategic Officer 35 0 X 282197 0 29648 Janus Norman Senior VP of Government Relations 35 0 X 240446 0 31753 Mike Steenburgh VP of Membership and Component Relations 35 0 X 187566 0 37464 Long Do Legal Counsel 35 0 X 184580 0 39950 2627282 0 296064 20 0 1 0 Seyfarth Shaw LLP 3807 Collections Center Drive Chicago IL 60693 Legal 127776 California Majority Group 980 Ninth Street Suite 2000 Sacramento CA 95814 Consulting 163000 Dimare Brown Hicks Kessler 1121 L Street Suite 408 Sacramento CA 95814 Consulting 131920 Doll Amir & Eley LLP 1888 Century Park East Los Angeles CA 90067 Legal 369080 John D Harwell 225 Twenty-Seventh Street Manhattan Beach CA 902662115 Legal 135462 22 0 0 0 2802449 0 1808156 0 4610605 Membership dues 900099 12895473 12895473 0 0 Insurance & other member programs 900099 228733 228733 0 0 Conference, seminars, workshops 900099 192700 192700 0 0 0 0 0 0 13316906 11 0 0 11 0 0 0 0 55418 0 0 55418 0 0 0 0 0 35891 0 -35891 -35891 0 0 -35891 0 186622 44270 142352 142352 0 0 Advertising income 541800 45228 0 45228 0 Administrative fees 900099 161576 141476 20100 0 0 0 0 0 206804 18296205 13600734 65328 19538 1554985 6063750 497904 1187489 604962 117951 1003581 57819 591419 21568 528385 122111 334109 123790 336634 437656 2077384 227734 531039 130995 Collection Fee 518614 342803 17412682 0 0 0 1947346 3182972 27487 0 0 248814 144866 37122 25045 169891 221097 13420729 6746402 6953152 6674327 198315 162422 906806 805454 20650043 20351602 31138976 31567785 1218411 1596175 8236497 8749569 0 0 0 0 0 0 4443321 4305416 0 0 4590660 2128388 18488889 16779548 X 12223246 14754719 426841 33518 0 0 12650087 14788237 31138976 31567785 883523 1254627 0 0 0 0 X 0 1 X 1 0 0 0 0 12895473 1862883 0 1862883 4384461 0 -2521578 1600000 0 1600000 7234568 0 2941505 4293063 113518 0 46142 67376 585064 0 372599 212465 3887579 0 3386156 501423 6674327 Affiliate receivable 18767754 Deferred compensation plan asset 1583848 20351602 Deferred compensation 1834337 Affiliate payable 294051 2128388 X Schedule D, Part X, Line 2 The association has applied the accounting principles related to accounting for uncertainty in income taxes and has determined that there is no material impact on the consolidated financial statements. X X X X 1 1 X X X X 0 1 0 Dustin E Corcoran Chief Executive Officer 441000 0 205000 0 35027 0 23850 0 39917 0 744794 0 0 0 Lance R Lewis Chief Financial Officer 257800 0 55000 0 28222 0 23850 0 28513 0 393385 0 0 0 Francisco J Silva Senior VP and General Counsel 264900 0 25000 0 3738 0 23850 0 17269 0 334757 0 0 0 Jay Hansen Chief Strategic Officer 215000 0 40000 0 27197 0 20700 0 8948 0 311845 0 0 0 Janus Norman Senior VP of Government Relations 225000 0 15000 0 446 0 6900 0 24853 0 272199 0 0 0 Mike Steenburgh VP of Membership and Component Relations 170000 0 16000 0 1566 0 15750 0 21714 0 225030 0 0 0 Long Do Legal Counsel 178000 0 6000 0 580 0 11970 0 27980 0 224530 0 0 0 Schedule J, Part I, Line 1a California Medical Association covers the cost of health club fees for a limited number of association executives. These expenses are included in the W-2 income for the Chief Executive Officer and other executives who receive them. The CEO is reimbursed for first class airfare as part of his contract that is approved by the Board. The organization also pays for travel costs associated with officers' spouses attending the annual executive committee strategic planning retreat. Schedule J, Part I, Line 4 The following executives have participated in the 457b Plan: Dustin E Corcoran $18,000, Lance R Lewis $18,000, Jay Hansen $16,500 Form 990, Part V, Line 2a California Medical Association uses a Professional Employer Organization (PEO), TriNet (48-1304650) to administer its payroll, health benefits, and human resources. As such, CMA does not file a form W-3 as this is handled by the PEO. The number provided on this line is the total number of employees that were included at any point during 2017 in this PEO agreement. Form 990, Part VI, Section A, Line 2 Dustin E Corcoran, Chief Executive Officer, and Lance R Lewis, Chief Operating Officer, have a family relationship. Form 990, Part VI, Section A, Line 6 The bylaws specify that there is one class of members who shall be the members comprising the Board of Trustees of the California Medical Association. Form 990, Part VI, Section A, Line 7a The members of the governing body, Board of Trustees, are elected by the House of Delegates pursuant to the procedures delineated in the bylaws of the corporation. Form 990, Part VI, Section B, Line 11b The IRS Form 990 and required schedules are prepared from audited financial statements and was reviewed by management before being electronically transmitted to the Board of Trustees. Form 990, Part VI, Section B, Line 12c The members of the governing body, Board of Trustees, and the Chief Executive Officers are required to file an annual conflict of interest disclosure statements with the corporation. Complete copies of the disclosure statements are provided to the Board of Trustees at each meeting as part of the agenda materials. All members are required to publicly disclose any potential conflict of interest during consideration of any item of business to come before the Board of Trustees. The organizational meeting of the Board newly elected trustees are provided additional instruction on conflict of interest at the new trustees orientation meeting held on an annual basis. Employees are required to disclose potential conflicts of interest in accordance with the personnel policies as stated in the employee handbook. Form 990, Part VI, Section B, Line 15 The Chief Executive Officer's compensation was determined using a salary data for similarly qualified persons in functionally comparable positions at other non-profit associations. The compensation data was obtained from surveys conducted by independent third parties. The CEO's compensation package was negotiated and approved by the Executive Committee of the Board of Trustees. The actions to approve the compensation for the CEO are recorded in the official minutes of the organization. Copies of the compensation studies are maintained by the organization's Finance and Personnel departments. The CEO's compensation is reviewed every three years. Compensation for key employees is also determined using a salary data for similarly qualified persons in functionally comparable positions at other non-profit associations. The compensation data was obtained from surveys conducted by independent third parties. Form 990, Part VI, Section C, Line 19 Copies of the governing documents, conflict of interest policy and financial statements are made available to the public upon written request. Form 990, part XII, Line 2c: The organization has an Audit Committee that assumes responsibility to oversee the Financial Statements audit process in which has not changed from year to year. CMA Holdings LLC 1201 J Street Suite 200 Sacramento CA 95814 384002579 Holding Company CA -35892 162422 CMA Medical Society Services LLC 1201 J Street Suite 200 Sacramento CA 95814 422262312 Consulting Services CA 20100 22 CMA California Medical Association Properties 1201 J Street Ste 200 Sacramento CA 95814 946062821 Title Holding Company CA 501(c) 2 CMA 1 California Medical Association Foundation 3835 N Freeway BLVD Ste 100 Sacramento CA 95834 946062822 Charitable Foundation CA 501(c)3 Line 10 CMA 1 Institute for Medical Quality 180 Howard Street San Francisco CA 94105 943240330 Improving Medical Quality CA 501(c)3 Line 10 CMA 1 CALPAC - California Medical Association PAC 1201 J Street Suite 200 Sacramento CA 95814 946353926 Political Activities CA 527 CMA 1 CALPAC - California Medical Association IEC 1201 J Street Sacramento CA 95814 680464807 Political Activities CA 527 CMA 1 PSO Services LLC 1201 J Street Suite 200 Sacramento CA 94814 812437069 Practice management and consulting services DE N/A Related 33 33 0 1 0.33 0 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 California Medical Association Foundation p 107236 Actual amount of reimbursement paid to CMA Foundation. California Medical Association Foundation q 187084 Actual amount reimbursed. California Medical Association Properties s 1069498 Actual amount of cash transferred. Institute for Medical Quality q 1339735 Actual amount reimbursed. Additional time was necessary in order to complete an accurate filing.