Monday, October 17, 2016

Why is the California Nurses Association swimming in money?


Since the year 2000 CNA has grown from about 30,000 members to 90,000 a 300 percent increase. In the same time period their total assets exploded from 7.4 million to over 238 million, a 3116 percent increase. By any measure this is a phenomenal rate of membership growth for any Union in an era of declining membership and a OMG rate of increase in financial strength. Some of the increase is due to Real Estate holdings and appreciation of Bay Area real estate but most is cash, including 108 million of cash on hand at the end of the reporting period.

Let’s follow the money and see if we can answer this question while we examine how CNA and its parent organization, National Nurses United (who share the same leader) receive and spend members dues monies. We will look at various disclosure reports from the Labor Department known as LM2 reports as well as public interest websites that track campaign donations as the source of information. The Union look-up tool at the Department of Labor website can be viewed at the link. Department of Labor Union look-up tool

Membership and dues
20. How many members did the labor organization have at the end of the reporting period?
94,659
21. What are the labor organization's rates of dues and fees?
Rates of Dues and Fees
Dues/Fees
Amount

Unit
Minimum
Maximum
(a) Regular Dues/Fees
138.84
per
Month
69.42
138.84
Assets and investments
ASSETS
Schedule
Number
Start of Reporting Period
(A)
End of Reporting Period
(B)
22. Cash

$90,029,013
$108,088,355
23. Accounts Receivable
1
$6,715,017
$6,524,695
24. Loans Receivable
2
$7,233,776
$0
25. U.S. Treasury Securities

$20,857,328
$23,465,615
26. Investments
5
$30,502,364
$29,099,225
27. Fixed Assets
6
$70,539,574
$70,093,092
28. Other Assets
7
$1,085,375
$1,199,302
29. TOTAL ASSETS

$226,962,447
$238,470,284
Interesting note on line 24 references the 7.2-million-dollar loan CNA made to another labor union, NUHW, 5 years ago and. That relationship was severed last year and NUHW has not paid one dime. In the footnotes of CNA’s 2016 LM2 report they list that loan as uncollectable. Another red flag here is why does a labor union need to sit on 108 million in cash. Read about the CNA NUHW history and split here. CNA - NUHW Split and Loan
Executive Salaries – Keeping it in the Family
Rose Ann Demoro has been the Executive Director of CNA and NNU for many years. Both Rose Ann and her husband Robert, who is Director of Research, command nice salaries from CNA and NNU. Combined they pull in 567 thousand in the last year.
Demoro ,  Rose Ann  
Executive Director
None
$182,370
$672
$4,500
$0
$187,542

I
Schedule 15
Representational Activities
30 %
Schedule 16
Political Activities and Lobbying
20 %
Schedule 17
Contributions
0 %
Schedule 18
General Overhead
20 %
Schedule 19
Administration
30 %

Demoro ,  Robert  
Director Research
None
$192,102
$1,345
$0
$0
$193,447

I
Schedule 15
Representational Activities
80 %
Schedule 16
Political Activities and Lobbying
0 %
Schedule 17
Contributions
0 %
Schedule 18
General Overhead
20 %
Schedule 19
Administration
0 %
From NNU’s LM2 report – Many of CNA’s officers draw salary from both CNA and NNU which reports out of the same address in Oakland. If one did not know to look in both they would grossly underestimate the compensation of many CAN/NNU officers. Curious why Rose Ann’s salary is identical under both organizations. There are other relatives rumored to work for CNA.
Demoro ,  Rose Ann  
Executive Director
None
$182,370
$672
$4,500
$0
$187,542

I
Schedule 15
Representational Activities
15 %
Schedule 16
Political Activities and Lobbying
40 %
Schedule 17
Contributions
0 %
Schedule 18
General Overhead
20 %
Schedule 19
Administration
25 %
 Liabilities
CNA purchased in early 2015 a 66-million-dollar Lake Merritt tower 10 story building with a view of Lake Merritt which is considered prime Real Estate in Oakland. They recently sold their 2000 Franklin St address for 13 Million. Most members have yet to see this new building from the inside and most meetings are held away at other properties or hotels. The membership was not told about this purchase until well after it was reported in the media and little has been said since. Eyebrows are being raised about the perceived secrecy around the need for and use of this high priced piece of Real Estate. Read about that purchase here CNA purchases Lake Merritt Tower - Business Journal
LIABILITIES
Schedule
Number
Start of Reporting Period
(A)
End of Reporting Period
(B)
30. Accounts Payable
8
$4,008,020
$4,131,699
31. Loans Payable
9
$66,000,000
$51,545,000
32. Mortgages Payable

$0
$0
33. Other Liabilities
10
$5,806,567
$7,307,118
34. TOTAL LIABILITIES

$75,814,587
$62,983,817

35. NET ASSETS
$151,147,860
$175,486,467
CNA California State Political Activities
SUMMARY INFORMATION - CALIFORNIA NURSES ASSOCIATION PAC (CNA-PAC) (ID# 780657)
CURRENT STATUS
ACTIVE
LAST REPORT DATE THIS SESSION
09/29/2016
REPORTING PERIOD
07/01/2016 - 09/24/2016
CONTRIBUTIONS FROM THIS PERIOD
$217,472.27
TOTAL CONTRIBUTIONS 1/1/2016 - 09/24/2016
$837,022.38
EXPENDITURES FROM THIS PERIOD
$369,511.66
TOTAL EXPENDITURES 1/1/2016 - 09/24/2016
$1,085,089.59
ENDING CASH
$50,181.17
It’s very interesting to drill down into the detail of contributions. CNA contributed to many ballot measures mostly Proposition 61, nearly every Democratic Candidate for state races, many local board of supervisors, local city or county measures dealing with a variety of items from campaign finance to local energy development to schools. To say they spread money around is an understatement. See for yourself at the link.
The SOS data is much lower than even CNA’s self-reporting of political contributions on their LM2 likely due to different reporting periods and monies still in the pipeline as we approach the election.
National Nurses United
Founded in December 2009, NNU brought together the California Nurses Association/National Nurses Organizing Committee, United American Nurses, and Massachusetts Nurses Association. Its purpose is to give registered nurses a national voice and organizing power. Since additional registered nurses in Florida, Illinois, Iowa, Missouri, Nevada, Texas and Washington, D.C. have been organized under NNU. The clear dominate force of the 196,000 member NNU is the 95,000 members from CNA.
NNU lists an address in Maryland but for reporting it lists the same CNA address in Oakland and many of its officers / directors work out of the Oakland Office. It shares the same website. NNU is much more modest in their assets. Monies are funneled in from the various State Unions, again, mostly from CNA in a back and forth flow that is very confusing to analyze without additional information.
ASSETS
Schedule
Number
Start of Reporting Period
(A)
End of Reporting Period
(B)
22. Cash

$25,634,802
$26,675,560
23. Accounts Receivable
1
$2,372,287
$2,746,704
24. Loans Receivable
2
$0
$0
25. U.S. Treasury Securities

$0
$0
26. Investments
5
27. Fixed Assets
6
$124,699
$77,050
28. Other Assets
7
$435,440
$449,999
29. TOTAL ASSETS

$28,567,228
$29,949,313
NNU Political Spending
National Nurses Super Pac is named National Nurses for Patient Protection. The link below shows you where they are spending their money in 2016. You can see the summary in the table below or go to the link and drill down on any of the candidates to get a list of everything they spent either to or on the behalf of their candidate. Uncle Bernie comes in first with almost 5 Million of the 6.6 million raised by the NNU Super PAC followed by a few House Candidates getting pocket change.  NNU/CNA is all in for Bernie hosting him at their conferences and plastering his insignia everywhere.  http://realtime.influenceexplorer.com/committee/2016/national-nurses-united-for-patient-protection/C00490375/
N
Support
$4,787,271
N
Support
$43,464
N
Support
$21,732
N
Support
$21,732
N
Support
$5,882

So who funds this Super PAC, individual contributors or members’ dues. Most CNA contracts allow members to designate money to go directly to the CNA PAC. Almost none do in my experience. At the link you can go down and see who contributes and its almost entirely contributions from National Nurses Association minus a handful of small contributions. So, members dues transferred from the various subsidiary Unions mostly CNA are what funds NNU’s Super PAC as far as I can tell.
In Summary
The purpose of this post is to enlighten CNA members on some of the ways their Union sends and receives their money without offering much commentary on if it is justified. It’s also done to educate Union Members everywhere that their Unions finances are public record accessible to them with a simple search.  After looking at the numbers one thing was clear to me. CNA can do their job on a whole lot less of members’ dues money. Perhaps a look at the dues structure is in order.  A more in-depth analysis of the flow of money between CNA and NNU and how much of the money is really being spent on the representative versus political causes. Why are they hording money and buying expensive properties and being secretive. Time to shine a little light and find out.

Wednesday, October 8, 2014

InQuickER - Thats what she said

A new marketing tool has made its debut in many local Emergency Rooms. Most notably, at Dignity Health. The Human Kindness folks. Its called InQuickER. Its a web based tool to allow one to make appointments in their participating Emergency Department from the comfort of their own home via their Smart Phone.

The theory goes like this. You have an urgent issue, but not something life threatening, and you do not want to wait in a crowded Emergency Room full of coughing Ebola patients. You pull out your Smart Phone and make an appointment in your local ED and are assigned an appointment time. You wait in the comfort of you own home and when you arrive you get right in, supposedly. The program will kick you out if you put in key words such as "Chest Pain" or "Stroke". and will advise you to call 911. It contains disclaimers that your appointment time is not guaranteed if there are real emergencies to deal with. The ED will receive a fax that your on the way and the staff is instructed to accommodate your arrival. If your time cannot be accommodated due to department acuity or volume the ED can push your appointment back in 30 min increments. You will get a message if your appointment time is altered.

Just a few problems other than the obvious question of Appointments in the ED, Really! The keyword recognition is really not that smart. There was a sentinel event at one Human Kindness facility that involved a pediatric death shortly after going live with this program. A mother had a sick child, made her online appointment and waited at home with her child. Her complaint description did not trigger the key word trigger and the fax to the ED did not set off any alarm bells. When the patient was brought in at the appointment time he was in severe shock and expired after resuscitation. Would the outcome have been different if she just brought the child in without waiting at home. Who knows. No problem. The RCA determined that a few tweaks of the Key Word sensitivity would prevent a further occurrence. I'm not so sure.

Thoughts, comments on your experiences with InQuickER or like programs. Is this program helpful or just a cheesy attempt to market Emergency Department services?