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American Medical Group Foundation Strategic Plan: 2015-2017 CONFIDENTIAL

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American Medical Group Foundation

Strategic Plan: 2015-2017

For Review at AMGF Board of Directors’

Strategic Planning Session November 14, 2014

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TABLE OF CONTENTS

1. AMGF Introduction

2. Executive Summary 3. AMGF Mission & Vision

4. Branding within AMGA 5. Programmatic Initiatives: 2015-2017

6. Financial Requirements

7. Fund Development Plan Overview

8. Appendices

AMGF Case Statement Fund Development Plan Financial Detail

o Operating Budget o Best Practices Collaboratives o Chronic Care Challenge o Acclaim Award

Board of Directors’ Survey Results

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INTRODUCTION

Past

AMGF has been in a continual state of evolution since its inception. The Foundation’s

focus was originally founded as the philanthropic arm of AMGA to develop grants,

quality awards, research, and education aimed at improved quality for our member

medical groups and health systems. Past highlights include:

100 medical groups and 13 private sector sponsors participated in Best Practices

Collaboratives

$1.3 million raised from 72 members in the AMGF Founding Member Campaign

$375,000 raised in the Corporate Partner Campaign

13 recipients and 35 honorees recognized with the Acclaim Award

Expansion to national stakeholders in 2011 to gain national recognition for chronic

care coordinated care model and its effectiveness in evidence-based care

These efforts were spearheaded through the leadership of key individuals, including

Carleton Rider, Jay Crosson, Bill Conway, and Julie Sanderson-Austin, who helped

develop, nurture, and refocus AMGF.

Present

Currently, AMGF is in a position to build a base of operation to launch the AMGF and its

programs nationally to achieve greater exposure and impact. This effort to develop and

sustain a national profile is evidenced by:

Launch of Chronic Care Challenge in 2012 to reduce burden of chronic conditions

throughout the nation

Ongoing development of effective collaborative projects with increased support for

groups and integration of data and measurement through Anceta

Demonstrated success of first national Chronic Care Challenge campaign, Measure

Up/Pressure Down®

Acclaim Award viewed as nationally recognized, revered accomplishment to AMGA

members

Creation of Chronic Care Roundtable to build financial support, relationships, energy,

and excitement for future Chronic Care Challenge campaigns (e.g., diabetes)

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Introduction of a Strategic Plan to guide AMGF activities

Greater recognition of the resources required to drive fund development efforts

Incremental infrastructure building to drive programmatic and fund development

initiatives

Future

AMGF’s future will rely on innovative programs and fund development initiatives to

effectively lead the transformation of health care to our member organizations and

beyond.

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EXECUTIVE SUMMARY

This Executive Summary highlights the key initiatives and issues that will define the

direction of AMGF from 2015-2017. The supporting documentation is within the plan

and its appendix.

Mission, Vision, and Branding

The restated Mission and Vision is offered in an attempt to capture a concise description

of who we are and what we do:

Proposed AMGF Mission Statement

The American Medical Group Foundation (AMGF) leads health care

transformation, creating and recognizing high-performing health systems, to

improve patient care.

Proposed AMGF Vision Statement

AMGF…

Catalyst

Convener

Collaborator

…translating the evidence of what works best into

everyday practice.

Branding AMGF

Explore how to best position and complement AMGF within the AMGA corporate

family. Based on the audiences that AMGF will interact with and impact as it

expands our national profile, branding will require a thoughtful conversation

resulting in intentional strategies.

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Programmatic Priorities & Financial Requirements: 2015-2017

Program 2015 2016 2017 2018 Financial Needs

Restricted Fund Expenses

Best Practices Collaboratives

Rheumatoid Arthritis 2015 N/A N/A N/A $464,0001

Adult Vaccines 2015 N/A N/A N/A $560,0002

Heart Failure N/A 2016 N/A N/A $500,000

Obesity N/A 2016 N/A N/A $500,000

TBD N/A N/A 2017 N/A $500,000

TBD N/A N/A 2017 N/A $500,000

Chronic Care Challenge

Measure Up/Pressure Down® 2015 (Year 3)

N/A N/A N/A $572,230

Diabetes Campaign 2015 (Planning)

2016 (Year 1)

2017 (Year 2)

2018 (Year 3)

$2.6M

Unrestricted Fund Expenses

Acclaim Award 2015 2016 2017 N/A

$2.3M Administrative/CAPP 2015 2016 2017 N/A

Fund Development 2015 2016 2017 N/A

Fund Development Goal: 2015-2017

Fund Development Goal 2015-2017 Financial Needs

Restricted Funds $6.2M3

Unrestricted Funds $2.3M

Fund Development Goal Total $8.5M

Fund Development Plan

A summarized plan is contained in the Appendix and in a further section of this plan.

The key strategies for funding both restricted and unrestricted programs will be in

1 Committed by AbbVie

2 Committed by Pfizer

3 Includes 2018 Diabetes campaign budget and $964,000 already committed for 2015 Best Practices Collaboratives

by AbbVie and Pfizer; Does not include $925,000 in outstanding grant requests for Measure Up/Pressure Down®

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identifying and cultivating corporations, medical groups and other organizations to

provide funding if their interests and values align with an AMGF program. In 2015, the

first step is to target corporations. Currently there are about 20 “A” and “B” corporate

prospects being cultivated for funding for various programs. The second step will be to

target medical groups and other organizations (healthcare foundations). The third step

will be an individual appeal.

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MISSION & VISION

Current AMGF Mission Statement

The American Medical Group Foundation (AMGF) is the 501(c)(3) affiliate of the

American Medical Group Association and it supports and disseminates research on

better ways to deliver health care that is scientifically sound and value-based. AMGF

also develops and supports educational programs to enable all stakeholders – providers,

payers, policymakers, and patients – to translate the evidence of what works best into

everyday practice.

Proposed AMGF Mission Statement

The American Medical Group Foundation (AMGF) leads health care transformation,

creating and recognizing high-performing health systems, to improve patient care.

Proposed AMGF Vision Statement

AMGF…

Catalyst

Convener

Collaborator

…translating the evidence of what works best into everyday

practice.

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BRANDING WITHIN AMGA

As AMGF moves forward with its programmatic and fund development activities herein,

branding of the Foundation will evolve from a tactic to a key strategic imperative. A

crucial conversation will naturally occur, focusing on how to brand AMGF within the

AMGA family of corporate entities. Given the audiences that the Foundation will touch

and interact with as it expands and obtains a respected, national profile, this issue will

require thoughtful consideration.

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PROGRAMMATIC INITIATIVES: 2015-2017


AMGF’s Best Practices Collaboratives incubate the ideas that become tomorrow’s

standards of care. The collaboratives build lasting networks as peers share knowledge,

then put this knowledge to work. Through regularly connecting with peers and industry

experts in person, in bimonthly conference calls, via webinars, and through published

case studies, participating medical groups have transformed health care for patients

nationwide.

2015 2016 2017

Rheumatoid Arthritis (AbbVie) Adult Vaccines (Pfizer)

Heart Failure (Novartis) Obesity (NovoNordisk & Merck)

Potential Best Practices Collaboratives topics (e.g., asthma, mental health) are currently being explored

Chronic Care Challenge

AMGF’s Chronic Care Challenge is a multi-year initiative to address the most pressing

chronic conditions in the nation by harnessing the best practices of AMGA member

medical groups and health systems. The Chronic Care Challenge launched with the

national Measure Up/Pressure Down® hypertension campaign from late 2012-2015 and

will continue with a diabetes campaign beginning in 2016. Future campaigns will be

launched at later times.

2015 2016 2017

Measure Up/ Pressure Down®

(Year 3) Diabetes campaign (Planning Year)

Diabetes campaign (Year 1)

Diabetes campaign (Year 2)

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Acclaim Award

Awarded by the AMGF, the Acclaim Award recognizes breakthrough contributions in

making health care better. Our prestigious quality award honors the nation’s premier

healthcare delivery organizations that are high performing and are bringing their

organization closer to the ideal medical group and health system by:

Measurably improving the quality and value of care

Improving patient experience and outcomes

Continuously learning and innovating

Improving population health

2015 2016 2017

Acclaim Award reception at 2015 IQL Conference honoring 2015 and past recipients and honorees Award categories into >150 and ≤150 FTEs New application and toolkit

Potential Acclaim Award reception event in Washington, DC

TBD

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FINANCIAL REQUIREMENTS

For strategic planning purposes, this section will provide fund development goals to

support the activities of AMGF from 2015 through 2017. Current funding is separated

into two distinct buckets:

Restricted Funds


Chronic Care Challenge (includes Measure Up/Pressure Down® and Diabetes

campaign)

Unrestricted Funds

Acclaim Award

Administrative/CAPP

Fund Development

The following details anticipated expenses for the aforementioned activities:

Restricted Funds


The supporting sponsor of AMGF Best Practices Collaboratives is contractually

committed prior to the specific project’s initiation. Traditionally, sponsorship has

been in the pharmaceutical field. The annual budget for each collaborative project

ranges from $450,000 to $600,000, with an average of $500,000. The status of

funding is as follows:

2015 2016 2017

Rheumatoid Arthritis (AbbVie – Committed) $464,000 Adult Vaccines (Pfizer – Committed) $560,000

Heart Failure (Novartis – Preliminary Discussions) Obesity (NovoNordisk & Merck – Preliminary Discussions )

TBD TBD

Funds needed to meet 2016 and 2017 collaboratives: $2.0M

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Restricted Funds (continued)

Chronic Care Challenge: Measure Up/Pressure Down® Campaign

Actual funds raised and expenses incurred since Measure Up/Pressure Down®

launched:

Expenses January 2012 to September 2014

$1,154,288

Funds Raised to Date $1,397,500

Net Income $243,212

Outstanding Requests* $925,000

Year Three Budgeted Expenses $572,230

Depending on the outstanding requests, Measure Up/Pressure Down® funding looks strong for final year.

*Outstanding requests include sponsorship and grant requests already submitted ($90K from Kaiser

Foundation, $350K from Daiichi-Sankyo, Inc., and $335K from the Agency for Healthcare Research

and Quality). A recently awarded (October 28, 2014) grant from the UnitedHealth Foundation for

$150K is also included in this line.

Chronic Care Challenge: Diabetes Campaign

Anticipated expenses for the Diabetes campaign (including planning):

2015 2016 2017 2018

$239,100 $880,304 $744,660 $739,140

Funds needed for Diabetes Campaign: $2.6 Million minimum for 2015-2018.

Unrestricted Funds

The operating budget for Administrative/CAPP, Fund Development, and the Acclaim

Award is:

Acclaim Award $300,000

Administrative/CAPP $268,000

Fund Development $1.73M

The total budget for activities funded through Unrestricted dollars is: $2.3M for 2015-2017.

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FUND DEVELOPMENT PLAN OVERVIEW

Financial Requirements

Financial requirements for restricted and unrestricted funding totals $8.5 million.

Please refer to the tables below for detailed breakdown:

Restricted Funds 2015 2016 2017 2018


$1,024,0004 $1,000,000 $1,000,000 N/A

Chronic Care Challenge: Measure Up/Pressure Down®

$572,2305 N/A N/A N/A

Chronic Care Challenge: Diabetes Campaign

$239,100 $880,304 $744,660 $739,140

Total: Restricted Funds $1,835,330 $1,880,304 $1,744,660 $739,140

$6,199,434

Unrestricted Funds 2015 2016 2017

Administrative/CAPP

$767,000 $767,000 $767,000 Fund Development

Acclaim Award

Total: Unrestricted Funds

$767,000 $767,000 $767,000

$2.3M

Fund Development (Annual Income)

AMGA Member Invoice Contribution $70,000

Sustaining Founding Member & Foundation Champion

$200,000

Individual Contributions $40,000

Annual Conference Silent Auction $27,0006

Total $337,000

4 Committed by AbbVie and Pfizer for 2015 Best Practices Collaboratives.

5 Does not include $925,000 in outstanding grant requests (see Page 12).

6 Reflects net income.

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Prospects and Prospecting

Programs (Restricted Funding)

Prospects for funding restricted programs will vary depending on the program. Some

organizations may fund more than one program, depending on their strategic

priorities in the U.S. market. Funding sources will be one of the following:

1. Pharmaceutical companies offering non-generic drugs or equipment in the

U.S.

2. Other companies serving the U.S. market for the specific program

3. Foundations, corporate or other, and other organizations that fund such

programs

4. Large medical groups

5. Individuals

Most of the funding will come from the first three sources.

In many respects, the U.S. market for healthcare is not a top growth market for

many corporations, but its size makes it a top market in their portfolio. In marketing

parlance, the U.S. would be a cash cow rather than a star. Companies do not

generally put their resources into cash cows because of low growth. Research has

shown that pharma is cutting out their respective niches in the U.S. chronic disease

market and fighting for the top three positions. If they do not achieve a top position,

their strategy seems to be to find another market where they can be a market

leader.

For diabetes, there are three market leaders: Novo Nordisk, Lilly, and Sanofi. Others

are less likely to fund major dollars in this market. However, since the U.S. market is

such a large market which is growing and projected to grow at a low rate for the

next several years, there are many vendors and suppliers to this market. The growth

markets for other pharma companies in diabetes is outside the U.S. These

companies will put their resources in the growth markets overseas, but may be

contributors at a lesser level to AMGF programs. There are about 18-20 active

prospects being cultivated as well as almost 200 “cold” suspects to be qualified for

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funding for any of the programs. A freelance researcher has been hired to do

research on suspects and prospects. The active prospects for the diabetes campaign

are listed below:

Novo Nordisk

Lilly USA

Sanofi

Roche

Merck

Aetna

AstraZeneca

Cigna

Dexcom

Medtronic

BlueCross/Blue Shield

Rite Aid

Kroger

Abbott Diabetes Care

Bayer

BI

GSK

J&J

Funding a Best Practices Collaborative or Chronic Care Challenge national campaign

is a capital campaign activity. Capital campaigns are often funded by several very

large donors with numerous smaller donors. Most of the funding will generally come

from a few funders with many more donors giving at various lower levels. Asks will

be for a minimum of $10,000 to about $1,000,000 or more, if possible. Benefits will

be offered depending on the level of financial support. Support will be spread over

the multiple years of the campaign for the large donors.

For the Chronic Care Challenge’s national Diabetes campaign, a detailed and specific

plan is being written with specific strategies for determining which funder is capable

and willing to donate at a certain level. Certainly, the top three companies — Novo

Nordisk, Lilly, and Sanofi — will be asked for the highest level of donation (for

instance, a $150,000/year (or higher) for each year of the campaign – for a total of

$450,000/year if the campaign is three years in length, or $600,000 if the campaign

is four years long). Other companies and organizations will each be determined for a

certain level ask after discussions with their staff.

Interviews immediately following the Chronic Care Roundtable meeting on October

1, 2014 were conducted with each participating organization to determine key

strategies for fundraising. Future discussions will further drill down into specifics

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such as level of contribution, what outcomes they would like for their financial

support, and what other organizations they can help recruit for financial support.

Foundation Activities (Unrestricted Funding)

The Foundation must go on from day to day paying salaries and benefits, overhead,

using equipment and supplies, and mounting events related to fundraising,

cultivation, and stewardship. Most of this funding will come from medical groups and

individuals who have a vested interest in the industry.

Annual campaigns, end-of-the-year fundraising, individual, major gifts, and dues

contribution campaigns will be conducted; a planned gift program will be established

as well as a legacy program. Special events such as the Silent Auction will be

presented with the goal of spending as little as possible with the greatest return. All

such funds received are unrestricted and can be used for any purpose. The goal is

to continually raise more money than is spent and add to a growing reserve fund to

ensure the continuity and longevity of the Foundation. In order to prosper, the

Foundation must grow its assets and improve its outcomes, attracting investors in its

future.

The Role of the Board of Directors

First and foremost, the Board must be committed to the success of the Foundation and

its programs and activities. On the most successful Boards, Board members agree to

adopt best practices with regard to their responsibilities. In the area of fundraising, this

means that the Board must insure that the culture of philanthropy and the commitment

to the case for support of the organization start in the boardroom. Before Board

members can turn to their loyal donors and new prospective donors, they must clearly

and unequivocally demonstrate their own support of the organization.

If the Board is not unreservedly behind the mission of the Foundation, programs will

fail, staff will burn out and leave, and the Foundation’s reputation and goodwill will be

diminished if not devastated. What takes years to build can be demolished in a short

time.

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The Foundation is building on momentum established by its chronic care programs (i.e.,

Best Practices Collaboratives and Chronic Care Challenge campaigns), and by the

Acclaim Award, recognizing excellence in the field. The Foundation complements AMGA

and its activities, and adds to the benefits of membership and to the quality of the field.

The Boards of both organizations must work to support their respective organizations

for the success of both organizations, aligned and linked together through mutual

benefit. This can be accomplished in many ways.

First of all, all Board members give personally or through their organization so that they

can say they support the Foundation with their donation as well as their time and

energy when speaking to prospective donors.

Secondly, every Board member can be a dynamite personal advocate for the

Foundation in their interactions at relevant meetings, calls and encounters. They can

use a thirty-second elevator speech and a few talking points to make the case for the

Foundation.

For Board members who feel comfortable with this, Board members can be very

effective at peer-to-peer fundraising. If not making the actual ask, they can set up

contacts for staff, sit in on meetings and calls with staff, and make introductions

between their colleagues and development staff. This will be especially helpful when

speaking with prospective donors for the Chronic Care Challenge’s national Diabetes

campaign. As this campaign progresses, staff can identify opportunities for board

members to participate in fundraising in ways they feel most comfortable. The peer-to-

peer fundraising of Board members is especially effective when talking to AMGA

members, their leadership, vendors, and wealthy individuals associated with the field.

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APPENDIX: CASE STATEMENT

There are two stories to be told about America’s current system of health care. Both are true. One is about a broken system, largely characterized by increasing complexity and escalating costs. The other is about health care that is patient-centered, clinically integrated, accountable and cost-efficient. It is the story of the care put into practice through the 435 multispecialty practices of the American Medical Group Association, many of them the most prestigious medical groups in the country. AMGA members have rejected the status quo and are embracing opportunities to transform a failing system, as their150,000 physicians deliver collaborative, coordinated care to 120 million patients, one-third of all patients in America. Yet this is only one part of the story. The other part is being written by the American Medical Group Foundation (AMGF). AMGF’s status as 501(c)(3)affiliate of AMGA places it in a unique position. Through research, educational programs and outreach regarding best practices, the Foundation supports the Association’s member organizations in delivering scientifically sound and value-based care, while helping translate the evidence of what works best into everyday practice. The Foundation’s energetic Board is made up of CEOs and other decision makers from prominent physician management groups and from businesses that have a shared interest in the AMGF’s mission. Meanwhile, through its Chronic Care Challenge, AMGF is creating ambitious, multi-year public health campaigns to improve quality of care and patient outcomes for preventable diseases, and to do so with the greatest possible impact. In this effort, the Foundation has assembled major corporations, government entities, leading non-profits, patient advocacy groups and practicing physicians in a powerful coalition of knowledge, expertise, and financial resources. Importantly, in its varied roles, AMGF is the only health care organization that can partner with hundreds of physician groups in achieving the outcomes that will directly reach and benefit millions of patients.

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The growing recognition that integrated, accountable care can fix a broken system places AMGA and AMGF at the center of meaningful reform. For years, the Association has been the “demonstration model”, leading by example. Through the work of the Foundation, the message is validated and disseminated—no multiple strategies, no diverse agendas, only one clear focus—coordinated, patient-centered care works, and “here’s why”. In the process, AMGF is improving the care experience and outcomes for every patient who walks through a medical doorway looking for respect, a relationship, and a way to be well. Inspiring Innovation For over a decade, AMGF’s Best Practice Learning Collaboratives have incubated the ideas that become tomorrow’s standards of care. Through the Collaboratives, medical group participants--- from large clinics to small independent group practices---create a community of knowledge. Shared learning helps accelerate systemic change and make lasting breakthroughs in patient care and service. To date, 100 medical groups and 13 private-sector sponsors have participated in combined collaboratives and symposiums on topic areas such as multiple chronic conditions, chronic obstructive pulmonary disease, hypertension and Accountable Care Organizations. The learning that takes place through AMGF’s collaboratives, webinars, and published case studies is transformative: here is evidenced-based medicine, where quality is measured in order to learn what is best, and then the data is shared. Physicians learning from each other leads to continuous improvement. The paradigm shifts. The Acclaim Award Measuring value in healthcare not only affects costs but also leads to outcomes that matter. For 15 years, AMGF’s annual Acclaim Award has recognized physician-directed, patient-centered systems of care that have embraced continuous learning and innovation. If AMGF’s Learning Collaboratives provide best practices, the Acclaim Award exemplifies what implementing “well-engineered” innovation can achieve.

The Permanente Medical Group, the 2013 Acclaim Award winner, cited a 62% decline in serious heart attacks and a 42% reduction in death from stroke among

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its patient population, a lowered hospital mortality of 17% and decreased hospital utilization of over 20%.

Award winners and honorees represent the performance excellence that the Award embodies—innovation, an unwillingness to accept what is, and a vision of what can be. Here are replicable, real life improvements that are changing health outcomes. Every improvement measure represents lives made better or saved. Innovation can remain isolated to one physician group, or it can become part of a model of care that has an exponential impact. The AMGF works with the Acclaim Award recipients in publishing their results in the AMGA’s Group Practice Journal, which reaches 70,000 health care executives and physicians, and in creating awareness of ways to achieve enhanced performance and improve the care delivered to millions of patients. Creating Change In November 2012, AMGF launched The Chronic Care Challenge. The initial target is hypertension, the “silent killer” that affects one in three, or 68 million, adult Americans, costs an estimated $156 billion every year, and is the leading cause of preventable death in the United States. Called Measure Up/Pressure Down™ (MU/PD), the campaign mobilizes AMGA members to have 80% of their high blood pressure patients in control of their condition by 2016. At the same time, it challenges patients, employers and indeed the entire nation to work toward achieving significant blood pressure improvement. AMGF’s first consumer outreach campaign, MU/PD concurrently taps the resources and reach of national partners and sponsors to raise awareness of what hypertension is, the risks it poses, and what people can do to prevent and manage it. Through the Best Practice Learning Collaboratives, the Acclaim Award, its research, and major initiatives such as the Chronic Care Challenge, the Foundation proves the case for collaborative, coordinated care. In the process, a door is opened for experts from the entire spectrum of healthcare delivery—physicians, nurses, technology experts, and more---to pool their knowledge, practices, and ideas, and become agents of change.

An Opportunity to “Do Well While Doing Good” Effective organizations have a vision of what is possible. Although a national shift from traditional care delivery models will take time, the Foundation leadership believes that the change is inevitable, potentially within the next decade. An initiative such as the Chronic Care Challenge is an invaluable opportunity to demonstrate the power of

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organized, integrated systems of care, along with informed, engaged patients and consumers, to transform the nation’s health. Here, the knowledge gained from the Learning Collaboratives and the innovative approaches represented by the Acclaim Award are put to work. Effective organizations also challenge the status quo and ask “what if”. What if every American received the high quality, affordable care he or she needs and deserves? What if health disparities were no longer an issue? What if patients worked with their health care team on personally tailored health management programs, and in the process not only found relief from illness, but the opportunity for vitality and a healthful longevity? Such questions are grounded in what AMGF knows is achievable. In support of this vision, our goal is to create collaborative relationships with key industry leaders in practical efforts to advance the science and value in the health system. We invite you to join us. Together, we have the knowledge, the tools, the

conviction, and the dedication to create a healthier America.

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APPENDIX: FUND DEVELOPMENT PLAN

1. Vision There needs to be a vision statement articulated to present to the public, AMGA members and supporters of what and where the AMGF strives to be in the long term future. The Vision statement(s) should communicate the way we want AMGF to be viewed by others. The Mission tells what we do. The Vision of the AMGF tells how we do what we do and how we are evolving to meet the needs of the future. The Vision, Mission and Case for Support tell everything anybody needs to know about the AMGF in a nutshell. 2. Mission The official mission statement is “The American Medical Group Foundation (AMGF) is the 501(c)(3) affiliate of the American Medical Group Association and it supports and disseminates research on better ways to deliver health care that is scientifically sound and value-based. AMGF also develops and supports educational programs to enable all stakeholders-providers, payers, policymakers and patients to translate the evidence of what works best into everyday practice.” 3. SWOT Analysis The SWOT analysis simply states the challenges and opportunities the AMGF faces. Weaknesses need to be made stronger if possible, and if not possible, indicate areas to be avoided; strengths indicate opportunities to lead with; opportunities are time sensitive – what is an opportunity today may disappear tomorrow; threats can be fatal or transitory and hopefully, fixable. Serious threats need to be handled immediately. These strengths, weaknesses, opportunities and threats have been identified by the TriPoints consulting firm in their last audit and plan. This summary plan presented here builds on the TriPoints work and goes beyond.

Strengths

Alignment and connection with AMGA and its members Programs that show outcomes of improved health of patients with data Direct connection to many physicians and medical groups through which to

carry out programs – and trust of AMGA members QI expertise and experience

Links to Anceta for outcomes and research Strong program history – Acclaim, Best Practices Collaboratives Staff/member relationships

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Weaknesses Need a long-term vision for what we should be and what we should

accomplish Going to same sources of funding as AMGA – need to diversify funding

sources and create new ones

Weak brand recognition: confusion as to roles of AMGA and AMGF No general public awareness of AMGA or AMGF like the AMA has yet we do so

much more to improve the nation’s health – more recognition would bring in more dollars

Limited staffing resources Limited reach of current programs Board not fully engaged Opportunities

Carve out a distinctive role from AMGF which will benefit both AMGA and AMGF

Establish a role for AMGF in AMGA’s strategic plan as an asset Produce innovative programs that make an impact on the healthcare system

which can bring national recognition

Partnerships with national organizations such as AARP – include patient advocacy groups, health plans, large employers, aligned groups

Hire a population health nurse to do more outreach Large number of chronic conditions to focus programs on and gain financial

support Threats Financial and lack of other resources – need to have ample reserves for daily

operating expenses, programs and opportunities as they arise Loss of identity as part of AMGA Limited number of funders

Others could replicate what we do – GPIN, IHI, PCPCC, CAPG, Epic Objectives Based on the SWOT analysis and other factors, these goals are identified. A. Goals 2015-2017

A1. Awareness

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Raise awareness of foundation and its role to AMGA members, donors and prospects and target audiences mentioned in section E.

Measure awareness by periodic surveys of membership in the AMGA membership survey

Communicate to the AMGA members on a regular basis about AMGF programs – beyond GPJ and Inside AMGA (Best Practice Collaboratives, Chronic Care Campaigns and Acclaim Award) and other activities as relevant

Increase web presence Hold events at AMGA meetings that feature the Foundation and its

activities

Encourage AMGF board members to speak about the Foundation whenever they have occasion to do so

Initiate contacts at leading healthcare foundations and start building relationships with these funders

Create a communications/marketing plan with the AMGA staff which will raise awareness of the Foundation through a variety of methods including social media

A2. Prospects Increase the number of prospects identified, researched, and qualified

by 25% in each of the three years 2015-2017

Classify qualified prospects into two categories, “A” (most likely to support) and “B” (somewhat likely to support) and begin cultivation activities on a systematic and regular basis using iMIS and other tools

Prepare detailed dossiers on “A” prospect organizations which will be used to customize appeals and asks to them, detailing a plan to engage them

Engage “A” prospects at meetings and events and other opportunities

Create Best Practice Collaborative priority conditions

A3. Programs

Develop a business and development plan in 2015 for the new Diabetes Chronic Care Campaign

Develop strategies and plans for 2015 new Best Practice Collaboratives and their relationships with Chronic Care Campaigns

Create a plan in 2015 to heighten the prestige and caché of the Acclaim Award; obtain funding for this award for 2015

B. Finance B1. Financial State

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Reserves will have to be built up and strategies to do this will have to be determined immediately. At the present time, the Foundation invests in programs with little left over to add to reserves, if not an outright deficit from funding programs. Fundraising is focused on specific programs and needs to be expanded to finding funding that is diversified, regular and unrestricted. For each program, there should be at least 10% set aside for overhead, unforeseen problems and reserves.

B2. Goals & Objectives

Diversified Funding Diversified funding includes planned giving, annual campaigns, funding from foundations and corporations, special events, challenges, specific programs, major donors (individuals and organizations), the sale and licensing of products, board fundraising and other activities that relate to many different sources of funds.

The Foundation staff plan to initiate these new funding campaigns in addition to current ongoing activities:

Annual campaign Planned Giving Grants from other foundations

Special events, lectures, workshops, scholarships and other naming opportunities

Staffing The current Foundation staffing in terms of fundraisers and development staff is limited to two persons, the Director of Development who is full-time and the Senior Manager of Donor Relations who is part-time. It will be necessary to hire additional staff in the next three years to meet the funding demands of the association. Outside contractors can be used in interim or supplemental roles as needed to do prospecting, strategic consulting, grant writing and other activities staff cannot get to but is necessary. Funding for contractors would add $50,000 to the Foundation budget annually whereas a full-time staff person would add $50,000 to $100,000 annually per position. The Foundation already receives

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services from AMGA for meetings, marketing, IT, finance and many other areas. Program staff will be paid for in the program expense budget.

C. Board C1. Development and Training

Determine from the board members and others from the task force and committees, what areas the board needs training in and set up a regular annual training schedule. Two board training sessions are scheduled for September and October of 2014 to cover all the current board members.

Conduct a new member board orientation webinar in January, 2015 and whenever new board members are added to the board

Conduct annual board self-evaluation surveys to determine gaps and needs of the board

C2. Diversification Determine what areas of expertise, demographics, geography,

connections in the field and other characteristics the board should have for optimal effectiveness in governance, strategy, fundraising and oversight.

Use a matrix of these characteristics to recruit new board members These issues will be discussed and future action determined at the

November 14 board meeting. C3. Job Description/Role

Create a job description for the board that spells out specific roles, obligations, duties and activities that characterize effective boards

Use this description to recruit and inform new board members

A draft job description crafted by task force members will be presented to the board at the November 14 board meeting.

C4. Fundraising

Board members can be very helpful in peer-to-peer major donor ($1,000+) fundraising which is the most effective type of fundraising

For those board members not inclined to be involved in a direct “ask,” there are many other roles that help fundraising activities such as making and cultivating connections; thanking donors with a phone call, meeting or personal letter; setting up a meeting or call for the staff or other board member to meet a prospect; talking about the Foundation

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and in general being an ambassador for the Foundation and performing other outreach activities.

It is helpful when appealing to donor prospects and foundations to be able to assert that the board participation is 100% in terms of a personal or organizational contribution

D. Prospects D1. Research, Identification, Qualification

Finding donors who are qualified (interested, capable of monetary or other donations and willing) is a numbers game. To obtain 10 donors may require researching, identifying and qualifying 100 or more “suspects,” those individuals or organizations that appear to be prospects in overall terms, but have not been researched or qualified. A part-time prospect researcher has been hired to go through a list of at least 200 suspects and prospects to speed up the process to identify new potential donors.

D2. Cultivation

Cultivation is like dating – it takes a while to see if you really like each other. Once suspects and prospects are qualified, it takes time to engage the prospects interest, find out the issues they want to support and finally to do the “ask.” Numerous suspects need to be qualified into prospects who are then cultivated with the goal of obtaining donations. Cultivation is the ongoing process of promoting or encouraging interest and/or involvement on the part of a potential donor or volunteer leader; an educational process to inform about an institution and reasons why it merits support. Cultivation activities include informing people about the activities, goals and mission of the Foundation; informing them about future programs; giving evidence of good stewardship of donated funds; advising of changes in staffing or strategic direction and of course, asking for support, investment and expertise.

D3. Moves Management

Moves management refers to cultivating current donors to give more and more often until a maximum level is reached. Current donors are the best prospects for future donations and should not be neglected. They too need to be cultivated and kept engaged throughout the donor life cycle. A donor throughout their lifecycle can potentially give hundreds of thousands of dollars over decades of giving.

E. Communication/Marketing

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Target markets for Foundation communications to reach prospects and donors focus on the six top markets listed here plus others that may pop up in the future.

E1. Target Markets

Pharma Medical Device Third Party Payers

Retail Pharmacies Large Employers Foundations Other

E2. Goals

Goals for communications and marketing include the following:

Building awareness about the Foundation and its programs and mission

Branding – establishing a brand for the Foundation that is distinct from AMGA yet affiliated

Expanding the website dynamically to reflect the changing activities of the Foundation and driving contact to the website from other communication vehicles

Use of Social Media as another method to engage prospects and donors

Establish E-newsletters and regular emails to communicate to prospects and donors

Use AMGA publications to publish articles, call-outs and ads to communicate to AMGA members

E3. Activities The goals and objectives above will form the infrastructure for the Foundation activities. Most of these activities will be started in late 2014, continue through 2015 and 2016. A general update will be conducted annually to carry out activities into 2016 and 2017—goals may be met and changed, new opportunities arise, donors come and go and have to be replaced as part of a dynamic development system reaching into the next three years. Other more immediate activities include: Create more communications resources for Board and staff members

to cultivate prospects—elevator speech, tagline, new brochures, annual report—part of the branding campaign

Create more activities to enhance the Foundation brand—more Roundtables, conferences, seminars, webinars, white papers focused

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on Foundation programs—that attract prospects as funders and participants

Touch our current donors at least quarterly through various means—emails, e-newsletters, letters, phone calls from staff and board, social media—to keep them engaged in our activities and show the stewardship of their investment in our programs

Reach out to prospects at least quarterly to interest them in our programs and show the value of their investing in the Foundation

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APPENDIX: FINANCIAL DETAIL

Best Practices Collaborative: Rheumatoid Arthritis Budget

2014-2015

AMGF Program Management 70,000

Grants 170,000

Honorariums 8,000

Measurement Design & Analysis (Anceta) 32,000

Compendium Development

Design/Layout Professional Writer/Editor

30,000 56,000

Website AMGF In-Kind

Meeting Costs (e.g., Advisors, Kick-Off, Wrap-Up)

Room Nights 19,000

Travel Expenses 31,500

Food/Beverage 27,000

Audiovisual 18,000

Total

$464,000

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Measure Up/Pressure Down® Budget

Year 1

2013

Year 2

2014

Year 3

2015

Direct Costs

Public Relations 75,460 75,460 36,000

Graphic Design 10,000 10,000 5,000

Printing & Production 27,375 8,000 8,000

Website Design & Hosting 20,000 1,200 1,200

Events & Workshops 82,050 82,050 25,000 Conference & Tradeshow Registration and Exhibit Fees 10,500 10,500 5,250

Postage and Delivery 7,080 1,180 1,180

Promotional Items 10,539 5,270 -

Staff Travel 35,400 35,400 20,000

Staff and Consultants 345,000 328,700 328,700

Campaign Video 15,000 -

Data Collection, Tracking & Evaluation 100,000 40,000 60,000

Basic Quantitative Evaluation 75,000 50,000

Indirect Costs

Use of Building and Utilities 81,900 81,900 81,900

Total $880,304 $744,660 $572,230

Optional Costs

Special Events 60,000 60,000 60,000

Regional Conferences Workshops 60,000 60,000 60,000

Manager, Partnerships and Special Projects 107,100 107,100 107,100

Consumer Education Materials 100,000 - -

Community Health Tour 100,000 100,000 100,000

Campaign Spokesperson 166,000 166,000 166,000

Campaign Closeout Event - - 300,000

Total including Optional Activities

$1,473,404 $1,237,760 $1,365,330

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Diabetes Campaign Budget

Year 1

2016

Year 2

2017

Year 3

2018

Year 4

2019 Totals

Direct Costs

Public Relations 75,460 75,460 75,460 - 226,380

Graphic Design 10,000 10,000 10,000 - 30,000

Printing & Production 27,375 8,000 8,000 - 43,375

Website Design & Hosting 20,000 1,200 1,200 - 22,400

Events & Workshops 82,050 82,050 82,050 - 246,150

Conference & Tradeshow Registration and Exhibit Fees

10,500 10,500 5,250 - 26,250

Postage and Delivery 7,080 1,180 1,180 - 9,440

Promotional Items 10,539 5,270 - - 15,809

Staff Travel 35,400 35,400 35,400 - 106,200

Staff and Consultants 345,000 328,700 328,700 - 1,002,400

Campaign Video - 15,000 - - 15,000

Data Collection, Tracking & Evaluation

100,000 40,000 60,000 - 200,000

Basic Quantitative Evaluation

75,000 50,000 50,000 75,000 250,000

Indirect Costs

Use of Building and Utilities

81,900 81,900 81,900 - 245,700

Total $880,304 $744,660 $739,140 $75,000 $2,564,1047

Optional Costs (Add-On Activities to Base Year Budgets Above)

$100,000 Level

Special Events 10,000

Regional Conferences Workshops 5,000

Participating Medical Group Visits 5,000

Consumer Education Materials 10,000

Campaign Spokesperson 50,000

Campaign PSAs 10,000

Campaign Media Buy 10,000

Total $100,000

7 Includes $239,100 budgeted in 2015 for Diabetes campaign planning.

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Diabetes Campaign Budget (continued)


$200,000 Level





Campaign Education Video 50,000




Total $200,000

$300,000 Level









Campaign Highlights Video 50,000

Total $350,000

$500,000+ Level









Campaign Highlights Video 50,000

Additional Campaign Staff 80,000

Total $500,000

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Diabetes Campaign Budget (continued)


Additional Activities (secondary “wish list” options)

Regional Local Group Meetings 50,000

Consumer Decision Aid Tool 50,000

Provider Materials 50,000

National TV PSAs 100,000

Campaign Closeout Event 150,000

Consumer Diabetes Animation or App 150,000

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APPENDIX: BOARD OF DIRECTORS SURVEY RESULTS

1. Looking out into the future five years from now, describe what success

looks like for the AMGF?

A cohesive, highly functioning and diverse board

A robust, annually updated 3 year workplan that outlines key activities and

initiatives

A sustainable platform that includes donor contributions that are multi-year and

ongoing in nature

Acquiring substantially more sustaining members

AMGF is recognized as a leader in this space, and is well known by AMGA

constituents and health care organizations beyond AMGA.

Better recognition of the value of organized systems of care through multi-

specialty group practices directly linked to AMGF work

Board Member succession plan in place and functioning

Board Members equipped to effectively communicate Foundation Mission in order

to promote and receive donor funding

Building the endowment by acquiring a larger number of supports from

industries and individuals

Clear recognition by AMGA members of the value the board brings

Clear Vision regarding the AMGF Mission and Goals

Dedicated staff of appropriate size and scope to carry out functions and roles

necessary for the Foundation to operate effectively on a day in and out manner

Dynamic link to rest of AMGA

Expanding MUPD to two more chronic diseases

Fully funded basic foundation enterprise

Fully funded third chronic disease campaign

Fund raising goals exceeded

Fundraising efforts are well established and there is a great 'story to tell' in the

marketplace re: AMGF work (as well as lessons learned!)

New method of raising the funds for #1

Priorities are clarified

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Quality improvement projects that are recognized and respected by all

stakeholders

To have a minimum of three successful chronic care collaboratives adopted by

30% of AMGA members

2. What are the barriers to achieving the success?

‘Feeling our way' through the next steps. Executing a good strategic plan will

address the barriers and timelines for success

AMGF member awareness and having the necessary infrastructure to implement

the Chronic Care Collaboratives

Awareness within AMGA itself of the work done by AMGF

Board cohesiveness: What skills/abilities/attributes do we want board members

to have? Serving on this board doesn't bring the same benefits as being on

AMGA board or others like that; it's more public service. We need to get to know

each other better and function as a team

Clarity of focus

Clear wins

Confusion in the market regarding who AMGF is and how it differs from AMGA

Cultivation of relationships with the "right" donors

Dedicated staff

Drying up of funds from pharma and medical equipment companies

Lack of focus - although this may change with the staff that has been added

Need to lay the foundation (strategic plan), and enlist the people in the mission

Projects: They're getting better all the time. We need to include input of

academic researchers even when it's uncomfortable. These projects give us the

ammunition to go to the outside community and to communicate better to AMGA

members

Refined message

3. What are the strengths of the AMGF?

Access to Strong leadership

An engaged Board being led by a very active and focused Chair--there is more

excitement than I have seen since the Board's inception

Dedicated staff and committed Board

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Effectiveness of prior and current initiatives

Experienced staff and leadership and let’s not forget a dedicated board

Great people! Want to make a difference. Relationships matter

Massive research base to infer and draw knowledge from the AMGA

Name recognition

Our mission

Smart, truly committed staff and board members. This isn't a glamor job, it's a

labor of love

Strong and capable staff

Strong board members who are ready to work

Strong leadership from Jerry Penso

Success of the MUPD campaign

The fact that medical group model is most able to respond to the world we face.

Therefore, we have an increasingly powerful value proposition

The opportunities to bring forward best practices in a rapidly changing

marketplace

4. What are the weaknesses of the AMGF?

Awareness and appreciation by the AMGA constituents

Capturing the diversity of the Board Members and who they know/organizations

they have worked with

Concern that this is all driven by big pharma rather than unbiased research and

clinical initiatives

Confusion as to AMGA vs AMGF, especially to the donor community

Does AMGF get adequate staff time? I think that's improving. However, we meet

so infrequently, and under such time pressure, there's not real time to probe

weaknesses. We have spent way, way too much time talking about raising

money in proportion to talking about what we'll do with it. There's no time or

subcommittees to ask the tough questions, such as about CAPP, which is

duplicative and a questionable use of resources. The power of this board is still

in the "Old Boy's Club”

Fundraising ability

Have had staff that are very effective, but stretched very thin when their AMGA

activities are taken into account

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Lack of clear mission

Limited time to gel as entity and as a Board

Minimal national profile/visibility

Momentum in fundraising would help

Relatively small organization for the work it is doing

Stigma of "fund raising"

Struggling to find funding for basic enterprise and for chronic disease campaigns.

5. As an AMGF Board member, is there clarity in the role you are asked to

fulfill?

It is increasing over the past year, but still work to be done

It's getting better!

Much more so than before

Some, I still have some confusion as to the focus on Governance vs Donor

work...are we truly fiduciaries or is the main focus to be assisting in fund raising?

Sometimes

Somewhat but I believe Board members would like to see a "job description" so

we can know exactly what is expected

There have been very clear asks as to how I we can contribute--so the answer

would be yes

6. We welcome any additional comments.

I like and respect the board members and believe in the mission. However, some

folks to the board was an experiment in what happens when you put in

outsiders. I think we and the board have benefited, but not anywhere near the

extent that would be true if more thought and effort were put into what you

want from us and what influence we should expect in return. Our terms expire

soon. It will be interesting what happens next.

The mission of the AMGF is very clear as stated on our website. I assume that

our strategic plan and new vision will involve the extension of the mission. This

entails being more effective and that will inevitably require greater funding.

Therefore, once we establish the strategic plan I believe we really have to

include the design of a more robust fundraising engine

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Think that this is a very exciting time to be involved in the foundation. Dr

Kirkland's focus has been awesome and I am looking forward to the work ahead

of us

We are moving in the right direction over the past year

Documents

American Medical Group Foundation Strategic Plan: 2015 … · American Medical Group Foundation Strategic Plan: ... Proposed AMGF Mission Statement ... American Medical Group Foundation