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Page 1: 2007 Annual Report - nationalhealthcouncil.org€¦ · In 2007, the National Health Council made great strides into a new future, marked by significant accomplishments and increasing

2007 Annual Report

Page 2: 2007 Annual Report - nationalhealthcouncil.org€¦ · In 2007, the National Health Council made great strides into a new future, marked by significant accomplishments and increasing

2007 Annual Report 2007 Annual Report 2007 Annual Report 2007 Annual Report — Page Page Page Page 3333

ONTENTS CONTENTS

Letter Letter Letter Letter ffffrom the Chairperson and Presidentrom the Chairperson and Presidentrom the Chairperson and Presidentrom the Chairperson and President............................................................4

VHA ServicesVHA ServicesVHA ServicesVHA Services

Voluntary Health Leadership Conference........................................................5 Washington Representatives Retreat ...............................................................5 Corporate Relations .......................................................................................6 Chief Financial Officers Meetings ...................................................................6 Chief Scientific/Medical Officers and Research Directors Meeting....................7 Standards of Excellence .................................................................................7 Group Purchasing ..........................................................................................8 Grassroots Technical Assistance Initiative........................................................8

Policy DevelopmentPolicy DevelopmentPolicy DevelopmentPolicy Development

Food and Drug Administration Reauthorization ..............................................9 National Institutes of Health Appropriations ...................................................9 Centers for Medicare and Medicaid Services.................................................10

Program ImplementationProgram ImplementationProgram ImplementationProgram Implementation

Presidential Election Initiative .......................................................................11 Electronic Personal Health Records ..............................................................11 Prescription Drug Benefit, Risk and Access ....................................................12 Price Negotiation Initiative ......................................................................... 12 Database for Research .................................................................................13

Information DeliveryInformation DeliveryInformation DeliveryInformation Delivery

Breakfast Briefing………... ………………………………………………………..…14 Health Groups in Washington ......................................................................14 Council Currents ..........................................................................................15 2006 VHA Revenue Survey...........................................................................15 2007 Management Compensation Report ....................................................16 Government Relations Benchmarking Report ................................................16 BoardSource ................................................................................................17

International OutreachInternational OutreachInternational OutreachInternational Outreach

International Alliance of Patients’ Organizations...........................................18

New Members in 2007New Members in 2007New Members in 2007New Members in 2007.........................................................................................19

Board of DirectorsBoard of DirectorsBoard of DirectorsBoard of Directors ................................................................................................20

Financial ReportFinancial ReportFinancial ReportFinancial Report....................................................................................................21

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LETTER FROM THE CHAIRPERSON AND PRESIDENT

In 2007, the National Health Council made great strides into a new future, marked by significant accomplishments and increasing momentum toward bigger and better opportunities to work for positive changes in health care in this country than ever before in the NHC’s history.

With our member organizations, we are becoming a force to be reckoned with in the health policy arena. Time and again, policy makers look to the National Health Council to give voice to the needs of people with chronic conditions.

And we have begun empowering patients to speak for themselves on issues of common concern to all. In September, the NHC’s Board of Directors approved a new strategic business model that calls for engaging the public directly, as well as through National Health Council member organizations, and for expanding funding approaches to capitalize on opportunities to forge partnerships with major corporations.

We have begun testing the new business model with an exciting initiative to focus the attention of the 2008 presidential candidates on the need for effective and affordable health and long-term care coverage. So far, we have hosted news conferences and town hall meetings in New Hampshire and South Carolina. During these meetings, many people with chronic diseases or disabilities spoke from the heart about their experiences with the health care system and the need for access to care. What’s more, the gatherings have generated significant attention from the media and the presidential campaigns.

Suddenly patients are talking, and presidential hopefuls are listening! The National Health Council is really beginning to make a difference. With our member organizations, we will intensify our efforts to bring about a health care system that puts patients first.

We plan to build on the achievements of 2007 as we move into 2008 — and harness the collective power of the patient advocacy community, our other member organizations, and new partners outside the NHC’s membership. In the future, the National Health Council will increasingly be known as the only organization of its kind that brings together all segments of the health community to provide a united voice for people with chronic diseases and disabilities.

Myrl Weinberg, CAE James E. Williams, Jr.

President Chairperson

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VOLUNTARY HEALTH AGENCY SERVICES

Voluntary Health Leadership ConferenceVoluntary Health Leadership ConferenceVoluntary Health Leadership ConferenceVoluntary Health Leadership Conference

In February, leaders from 29 of the National Health Council’s member voluntary health agencies (VHAs) braved terrible weather to gather in Tucson, Arizona, for the 20th Voluntary Health Leadership Conference. With a dual focus on emerging issues in health care and organizational capacity building, the conference provided a stimulating agenda. A good mix of presentations, case studies, and roundtable discussions offered numerous learning opportunities and a unique forum for networking.

Among the highlights, Elias A. Zerhouni, MD, director of the National Institutes of Health, shared his vision for a research model focused on “disease preemption. “ The concept involves studying large populations to identify risk factors on the genetic or molecular level and intervening before symptoms actually develop. American Cancer Society CEO John Seffrin, PhD, painted a compelling picture of “Health Care in the U.S.: Where We Are and Where We Must Go.” He urged VHAs to focus on advocacy and collaboration to bring about positive changes. American Heart Association CEO M. Cass Wheeler presented a case study on his organization’s program for strategic talent management, which utilizes assessment of incumbents, structured in-depth interviews, and regular local and national talent reviews.

Premier sponsors for the 2007 VHA Leadership Conference were Amgen Inc., AstraZeneca Pharmaceuticals, Bristol-Myers Squibb Company, Eli Lilly and Company, GlaxoSmithKline, Johnson & Johnson, Novartis Pharmaceuticals Corporation, Pfizer Inc, the Pharmaceutical Research and Manufacturers of America (PhRMA), and Wyeth Pharmaceuticals.

Washington Representatives RetreatWashington Representatives RetreatWashington Representatives RetreatWashington Representatives Retreat

At the end of November, members of the National Health Council’s Government Relations Affinity Group (GRAG) gathered for their annual two-day retreat at The Inn at Perry Cabin in St. Michaels, Maryland, to hear expert views on issues such as intellectual property, reauthorization of the Orphan Drug Act, comparative effectiveness legislation, and funding for biomedical research. GRAG members also discussed and made recommendations for the NHC’s 2008 policy agenda.

The event was made possible through an educational grant from Pfizer Inc.

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Corporate RelationsCorporate RelationsCorporate RelationsCorporate Relations

In response to, and in concert with, efforts by the pharmaceutical industry to enhance transparency in the disclosure of corporate sponsorships and grants to nonprofit organizations, the National Health Council explored ways to help member VHAs understand the issues involved and communicate them effectively to their constituencies.

First, the NHC began working to develop a consistent glossary of terms used in corporate grant applications. In addition, the Council began an initiative to enable industry and patient groups to collectively develop one standard policy or set of guidelines that would maximize transparency while balancing practical limitations. At year’s end, the NHC had developed prototype language for comment by member VHAs.

Chief Financial OfficerChief Financial OfficerChief Financial OfficerChief Financial Officerssss Meetings Meetings Meetings Meetings

Top finance executives from the National Health Council’s member VHAs gathered twice in 2007 to hear presentations on timely issues impacting nonprofit business operations, human resources, and administration. The first meeting took place in May in Alexandria, Virginia, and focused on hiring and retaining finance staff, executive transition, auditing standards, disaster recovery, data retention, and the NHC’s new group purchasing program.

The fall CFO meeting, held in October in Chicago, featured presentations on the new draft IRS Form 990, green banking (environmentally friendly finance), and ways to measure organizational success. Both meetings also provided time for group discussion to afford attendees an opportunity to share ideas and best practices.

Catalina Salley, vice president of finance and technology, Y-ME National Breast Cancer Organization, chaired both meetings.

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Chief Scientific/Medical Officers and Research Directors Chief Scientific/Medical Officers and Research Directors Chief Scientific/Medical Officers and Research Directors Chief Scientific/Medical Officers and Research Directors MeetiMeetiMeetiMeetingngngng

In October, the National Health Council hosted a meeting of its member VHA chief medical officers, research directors, and chief scientific and clinical officers in Washington, DC. The meeting featured a panel discussion titled “The Next Generation of Clinical Research Models: Decentralized, Cooperative Approaches that Work.”

Panelists included physicians who had successfully created innovative research networks for osteogenesis imperfecta, Alpha-1 antitrypsin deficiency, cystic fibrosis, and other disorders.

Robert A. “Sandy” Sandhaus, MD, chief clinical officer, Alpha-1 Foundation, chaired the meeting.

Standards of ExcellenceStandards of ExcellenceStandards of ExcellenceStandards of Excellence

The National Health Council’s Standards of Excellence demonstrate that member VHAs are committed to the highest standards of transparency, accountability, and public stewardship.

Progress toward 100 percent compliance continued in 2007 with three additional VHAs gaining recognition for having fully met the standards: CaringBridge, the Hydrocephalus Association, and the Myasthenia Gravis Foundation.

Every three years, member VHAs must certify their continued adherence to the standards. To enhance ease of use and accuracy, the 2007 compliance survey was conducted electronically for the first time. Members whose last compliance review occurred in 2004 took the survey again this year.

To ensure a voice in the self-governance debate beyond the voluntary health sector, NHC President Myrl Weinberg also served on Independent Sector’s Advisory Committee on Self-Regulation of the Charitable Sector. The committee developed a set of far-reaching “Principles for Good Governance and Ethical Practice” that were released in October.

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Group PurchasingGroup PurchasingGroup PurchasingGroup Purchasing

In January, the National Health Council announced the launch of its Business Partners Program, a group purchasing operation designed to help member organizations realize significant savings on products and services. Product categories include office products, overnight delivery service, printing/copying, office furniture, copiers, IT hardware/software, D&O insurance, unemployment insurance, retirement benefits, outplacement services, employee recruitment, technology services, and telephone/Web conferencing.

The NHC offered the group purchasing program in collaboration with the National Human Services Assembly. Though intended primarily for its VHA members, all of the NHC’s nonprofit member organizations are eligible to participate in the program.

Grassroots Technical Assistance InitiativeGrassroots Technical Assistance InitiativeGrassroots Technical Assistance InitiativeGrassroots Technical Assistance Initiative

Earlier in the year, the National Health Council received funding for a project to enhance the grassroots advocacy capabilities of its VHA members by providing $25,000 in consulting services to each of four member organizations. This project, an outgrowth of the NHC’s government relations benchmarking report (see page 16), was designed to help members better achieve their grassroots legislative and advocacy goals.

The organizations selected by a member task team to participate in the program are: the Epilepsy Foundation of America (EFA), Children and Adults with Attention Deficit/Hyperactivity Disorder (CHADD), the Huntington’s Disease Society of America (HDSA), and the National Alopecia Areata Foundation (NAAF).

The project was launched in June, and each group began to complete the key phases of selecting an internal task team, formulating a campaign objective, creating a campaign strategy and tactics, securing resources, and implementing the actual campaign.

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POLICY DEVELOPMENT

Food and Drug Administration ReauthorizationFood and Drug Administration ReauthorizationFood and Drug Administration ReauthorizationFood and Drug Administration Reauthorization

Throughout the year, the National Health Council was highly engaged — and had significant positive impact — on several individual pieces of legislation related to Food and Drug Administration (FDA) reauthorization.

Perhaps of greatest importance to patients with chronic conditions and their caregivers, the bill accomplished the goal of adding needed safety requirements without placing undue restrictions on access to new drugs or significantly slowing the approval process for potentially life-saving medications.

Efforts by NHC members to ensure a balance between safety and access prompted the publication BioCentury in its April 9 issue to refer to them as “politically potent patients groups.”

In addition, Congress reauthorized the Medical Device User Fee and Modernization Act and other critical legislation, such as the Best Pharmaceuticals for Children Act.

National Institutes of HealthNational Institutes of HealthNational Institutes of HealthNational Institutes of Health Appropriations Appropriations Appropriations Appropriations

The National Health Council and its members maintained a hectic pace throughout the year in pushing lawmakers to restore full funding for the National Institutes of Health (NIH).

Earlier in the year, the health community unified around a request for a 6.7 percent overall increase for NIH — which would allow the agency to recover some of the budgetary ground lost over the last few years.

For its part, the NHC and its Government Relations Affinity Group circulated a letter to members of the House of Representatives urging additional funding for NIH and secured more than 180 signatures. The Council also sent each Senate office and committee a copy of its report Investing in Innovation: The NIH — Making Healthy Progress in Our Lifetime. This was done in advance of a hearing by the Senate appropriations subcommittee on Labor, Health and Human Services, and Education discussing NIH and patients with chronic conditions.

NHC staff met with Majority Leader Steny Hoyer’s office on November 9 to discuss the appropriations strategy for the rest of the year. As of early December, the House and Senate leadership were working to preserve the increase for NIH in the event of an omnibus bill.

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Centers for Medicare and Medicaid Services (CMS)Centers for Medicare and Medicaid Services (CMS)Centers for Medicare and Medicaid Services (CMS)Centers for Medicare and Medicaid Services (CMS)

The National Health Council joined with member organizations and other groups to urge passage of the expanded State Children’s Health Insurance Program (SCHIP). In particular, the NHC worked with the SCHIP Resource Group at Easter Seals to provide updates and information to members as the legislation moved through the process.

In October, the president vetoed the bipartisan SCHIP bill and threatened to do likewise with any subsequent congressional proposals that attempted to increase SCHIP coverage. At year end, the program had been extended through December 14, and negotiations were underway to reach an agreement. It appeared that the program might be reauthorized at current levels until after the 2008 elections.

Also in 2007, CMS issued its final citizenship guidelines for Medicaid eligibility. In its comments, the National Health Council said the proposed rules were overly restrictive for many in the patient community. The final guidelines did expand the list of documents that were acceptable to verify citizenship and exempt some groups with particular needs from the requirements.

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PROGRAM IMPLEMENTATION

Presidential Presidential Presidential Presidential ElectionElectionElectionElection Initiative Initiative Initiative Initiative

To ensure that access to health care remained a top priority among the 2008 presidential candidates, the National Health Council undertook an initiative to inject the voice of the patient into the campaign process.

Toward this goal, 49 of the NHC’s VHA CEOS signed a public statement calling on all candidates to propose specific solutions to the problem of lack of access to care. The statement was released in September at a news conference and town hall meeting in Nashua, New Hampshire.

Spearheaded by the Alzheimer’s Association and Easter Seals, numerous other NHC members participated in the event, including the Alpha-1 Foundation, the American Heart Association, the Hydrocephalus Association, The Leukemia & Lymphoma Society, the National Alopecia Areata Foundation, the March of Dimes, the National Marfan Foundation, and the Sjögren’s Syndrome Foundation. The Partnership Fighting Chronic Disease also helped organize the event. The Nashua news conference was immediately cited in a blog on Senator Barack Obama’s campaign website.

In November, the action moved to Columbia, South Carolina, where some 70 patients told their personal stories to educate the candidates and the media about the need for effective and affordable health and long-term care coverage. The state’s top television stations covered the event, including NBC, ABC, and FOX affiliates. The State newspaper, top political blogs, and a 64-station radio network also provided coverage. Staff from the campaigns of John Edwards, Mitt Romney, Hillary Clinton, John McCain, Barack Obama, and Rudy Giuliani were in attendance.

More such events are planned throughout the 2008 election cycle.

Electronic Personal Health RecordsElectronic Personal Health RecordsElectronic Personal Health RecordsElectronic Personal Health Records

Earlier in the year, the National Health Council, in partnership with America’s Health Insurance Plans, launched a major effort to increase awareness of, and demand for, personal health records (PHRs).

As a first step, pilot meetings in California and Massachusetts brought individual patients together with insurance providers to discuss ways to increase awareness and use of PHRs by people with chronic diseases and disabilities. Following the initial meetings, a Web-based prototype PHR was under development to raise awareness among patients.

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The NHC’s National Advisory Commission on Patient-Centered Care met in September to help guide efforts to increase consumer awareness and use of PHRs.

Prescription Drug Benefit, Risk and AccessPrescription Drug Benefit, Risk and AccessPrescription Drug Benefit, Risk and AccessPrescription Drug Benefit, Risk and Access

In continuation of its program on prescription drug safety, benefit and risk, the National Health Council released a report titled Patient Matters: Personal Stories About Access to Prescription Drugs.

As concern over drug safety heated up on Capitol Hill, the report was developed to convey the real-life experiences of ten patients and family caregivers with prescription drugs that treat chronic conditions. The personal vignettes represented a variety of viewpoints and demonstrated varying levels of risk tolerance depending on individual circumstances.

The report proved compelling in visits with Senate and House staffers and helped to remind lawmakers that people with chronic conditions have a different tolerance for risk than people who are healthy.

Educational grants to analyze proposed bills related to the Food and Drug Administration were provided by Eli Lilly and Company, PhRMA, Johnson & Johnson, and AstraZeneca Pharmaceuticals.

Price Negotiation InitiativePrice Negotiation InitiativePrice Negotiation InitiativePrice Negotiation Initiative

As policy makers attempted to reduce health care spending, including prescription drug costs, various approaches were under consideration in Congress to allow, or even compel, the Secretary of Health and Human Services to negotiate drug prices for Medicare.

To ensure that member VHAs were properly informed on the issues involved with price negotiations, the National Health Council commissioned Georgetown University’s Institute for Health Policy to prepare an overview paper to define terms, explain various pricing models and their histories, and analyze the implications of each model. The NHC also commissioned formative research among patients and caregivers to determine their awareness, knowledge, and attitudes about price negotiations as a way to control health care costs.

On behalf of its VHA members, the NHC shared concerns with Hill staff about potential unintended consequences for Americans with chronic diseases and disabilities. The legislation ultimately failed to receive enough votes to close off debate and by year’s end had not been voted on in the Senate.

An early 2008 forum was planned for VHA members whereby the National Health Council would share the results of its research. The NHC’s Government Relations

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Affinity Group and CMS Issue Team reviewed the reports in order to make policy recommendations.

The prescription drug price negotiation project was funded by grants from AstraZeneca Pharmaceuticals, PhRMA, Wyeth Pharmaceuticals, Merck & Co., Inc., and Novartis Pharmaceuticals Corporation.

Database for ResearchDatabase for ResearchDatabase for ResearchDatabase for Research

Earlier in the year, the National Health Council began working with the National Institutes of Health (NIH) Office of Extramural Programs to develop a Web-based database that would make information on the agency’s unfunded but worthwhile research proposals available to NHC members and other potential research underwriters.

Currently, the number of applicants for NIH grant funding deemed significant and of scientific and technical merit far exceeds the total that can be funded within the agency’s budget. About half of the applications that undergo NIH’s rigorous peer-review process are judged to have scientific merit and could be considered for funding. Yet only half of those actually receive funding from NIH despite their potential to make significant contributions to scientific discovery.

As envisioned, the National Health Council database would facilitate the exchange of information to offer alternative funding opportunities to the investigators whose unfunded proposals have been scored and recommended as worthy. In this way, other potential funders could avoid duplication of effort and more efficiently identify valuable research proposals. In addition, investigators and their respective research institutions could spend less time, effort, and resources looking for funding and more time conducting research.

At year’s end, the NHC was seeking funding to contract with an experienced information technology firm to develop a branded site and manage the database. If the project is funded, NIH will notify all unfunded grantees of the database, and the NHC will promote the database to its members and the research community at large.

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INFORMATION DELIVERY

BreakfastBreakfastBreakfastBreakfast Briefing Briefing Briefing Briefing For more than 20 years, the National Health Council has held Breakfast Briefings to foster dialogue among key policy makers and the nation’s health care community.

At an April 30 briefing, Food and Drug Administration (FDA) Commissioner Andrew von Eschenbach discussed the Prescription Drug User Fee Act, food and drug safety, and the changing nature of the health care delivery system. He also spoke about the evolution of more personalized care and medications as knowledge of individual genetics and biological systems increases.

The event attracted numerous members of the media, including BNA's Health Care Daily, Business Week, CBS News, Congressional Quarterly, C-SPAN, FDA Week, Modern Healthcare Magazine, National Journal, NPR, Psychiatric News, Reuters, The Pink Sheet, and Washington Drug Letter. C-SPAN aired the briefing in its entirety early the next morning.

The event was made possible by an educational grant from Novartis Pharmaceuticals Corporation.

Health Groups in WashingtonHealth Groups in WashingtonHealth Groups in WashingtonHealth Groups in Washington

Health Groups in Washington celebrated its 32nd anniversary in 2007 with the publication of the 19th edition. Since its first printing in 1975, this directory has become recognized as a key resource for locating major, nongovernmental health-related organizations in the Washington, DC, metropolitan area.

The 2007 edition of Health Groups in Washington features more than 900 organizations and 1,300 executive and policy staff contacts. Listings are referenced via a comprehensive index of 190 health categories and include key contacts, titles, mailing addresses, phone and fax numbers, e-mail and Web addresses.

In addition to marketing the publication to various industry segments, the NHC also sent a copy of the directory to each member of Congress, along with other Hill staff and administration officials.

The 2007 edition of Health Groups in Washington was made possible by a grant from the United Health Foundation.

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Council CurrentsCouncil CurrentsCouncil CurrentsCouncil Currents

The National Health Council’s flagship publication Council Currents is delivered bimonthly via e-mail and Web to more than 2,000 recipients. The newsletter features a concise format with one or two cover stories and a bulleted sidebar to navigate readers to additional articles and features. Coverage revolves around the NHC’s activities and issues, but also touches upon external events and undertakings of interest to member organizations.

In addition to delivering news, the electronic version of Council Currents contains limited in-house advertising to promote publications, events and other services.

2002002002006666 VHA Rev VHA Rev VHA Rev VHA Revenue enue enue enue SurveySurveySurveySurvey

A record 38 members took part in the National Health Council’s 2006 VHA Revenue Survey, an annual study that serves to help patient advocacy groups benchmark their revenue streams against those of their peers. The survey covered revenues from fiscal years 2004, 2005 and 2006.

All VHA members received a generic report detailing aggregate revenue data. However, participants in the survey also were given a customized report comparing their results with their peer group — small, medium, large and extra-large organizations) — and all survey participants. The reports included detailed spreadsheet data and bar graphs.

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2002002002007777 Management Compensation Report Management Compensation Report Management Compensation Report Management Compensation Report

To help member VHAs better hone their recruiting and retention efforts, the National Health Council annually releases a benchmarking report of compensation practices across a spectrum of 100 mid-level and executive positions. The report, a joint effort with the National Human Services Assembly, includes data from both VHAs and human service organizations, such as the United Way.

More than 50 groups completed the 2007 compensation survey, among them 35 NHC member VHAs.

In keeping with past practice, one free copy of the 2007 Management Compensation Report was sent to all participating VHAs.

GovGovGovGovernment Relations Benchmarking Reporternment Relations Benchmarking Reporternment Relations Benchmarking Reporternment Relations Benchmarking Report

The National Health Council released a new benchmarking study during 2007: Government Relations Programs in Voluntary Health Agencies. The report assessed the current state of government relations programs within small, medium and large VHAs and identified challenges and opportunities in further developing those programs. The report also examined the NHC’s role in supporting and enhancing the government relations activities of member VHAs.

Among the key findings:

• VHAs spent a significantly lower percentage of total revenue on government relations activities than on other major areas of activity, such as research or programs.

• Many VHAs were considering or engaging in federal policy initiatives on systemic health care issues.

• Grassroots capacity among VHAs was relatively low; increasing it was viewed as both a top priority and a major challenge.

The report helped to inspire the NHC’s 2007 grassroots technical assistance program (see page 8).

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BoardSourceBoardSourceBoardSourceBoardSource

On the heels of its successes in 2005 and 2006, the National Health Council again offered discounted BoardSource enrollment to all members at $59 per individual — a 40 percent discount off the regular annual rate of $99. As previously, more than 100 members took advantage of the offer which qualified all enrollees for a more deeply discounted rate of only $49.

BoardSource membership provides the knowledge and tools nonprofit organizations need to build high-performing boards. Members use its resources and services to find solutions, leadership tips, and governance knowledge about board-related issues. Specific benefits include a subscription to Board Member magazine, free members-only online resources, discounted publications and products, and a free electronic newsletter.

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INTERNATIONAL OUTREACH

International Alliance of PatientsInternational Alliance of PatientsInternational Alliance of PatientsInternational Alliance of Patients’’’’ Organizations Organizations Organizations Organizations

National Health Council President Myrl Weinberg officially began serving her two-year term as chair of the International Alliance of Patients’ Organizations (IAPO) Governing Board in the fall of 2007. Ms. Weinberg replaced Albert van der Zeijden, immediate past chair of IAPO.

In general, 2007 was a busy and productive year for IAPO. In February, the World Health Organization (WHO) officially granted recognition to IAPO, which works closely with the WHO World Alliance for Patient Safety through its program “Patients for Patient Safety.” Since 2004, “Patients for Patient Safety” has identified and provided training for more than 70 “patient champions” through global, regional, and national workshops.

In June, Virginia Ladd, an IAPO board member and president of the American Autoimmune Related Diseases Association, met with patient groups and the media in Osaka, Japan, where she made the case for patient-centered health care. That same month, IAPO made a presentation at the Commonwealth Health Ministers Meeting and the 60th World Health Assembly in Geneva. IAPO’s presentation focused on the role of patients in public health, innovation, and intellectual property.

IAPO is a unique global alliance that represents patients of all nationalities across all disease areas and promotes patient-centered health care around the world. Its members are patient organizations working at the international, regional, national, and local levels to represent and support patients, their families and caregivers. IAPO’s vision is that patients throughout the world are at the center of health care.

IAPO’s 2008 Global Patients Congress is scheduled to take place February 20-22 in Budapest, Hungary.

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NEW MEMBERS IN 2007

Voluntary Health AgenciesVoluntary Health AgenciesVoluntary Health AgenciesVoluntary Health Agencies

Autism Society of America

Mesothelioma Applied Research Foundation

Professional and Membership AssociationsProfessional and Membership AssociationsProfessional and Membership AssociationsProfessional and Membership Associations

The American Academy of Physician Assistants

American Society for Nutrition

America’s Health Insurance Plans

Interamerican College of Physicians and Surgeons

Society for Investigative Dermatology

Society for Women’s Health Research

Nonprofit Organizations Nonprofit Organizations Nonprofit Organizations Nonprofit Organizations wwwwith ith ith ith aaaan Interest n Interest n Interest n Interest iiiin Healthn Healthn Healthn Health

Guide Dog Foundation for the Blind, Inc.

Business aBusiness aBusiness aBusiness and Indusnd Indusnd Indusnd Industrytrytrytry

EMD Serono, Inc.

Milliman Care Guidelines LLC

Associate MembersAssociate MembersAssociate MembersAssociate Members

Noblis

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BOARD OF DIRECTORSBOARD OF DIRECTORSBOARD OF DIRECTORSBOARD OF DIRECTORS

Chairperson James E. Williams, Jr.James E. Williams, Jr.James E. Williams, Jr.James E. Williams, Jr. President Easter Seals

Chairperson-Elect Margaret C. KirkMargaret C. KirkMargaret C. KirkMargaret C. Kirk Chief Executive Officer Y-ME National Breast Cancer Organization

Vice Chairperson Cindy BrownsteinCindy BrownsteinCindy BrownsteinCindy Brownstein Chief Executive Officer Spina Bifida Association of America

Secretary - Vacant

Treasurer Mitchell StollerMitchell StollerMitchell StollerMitchell Stoller President Lance Armstrong Foundation

Immediate Past Chairperson John W. WalshJohn W. WalshJohn W. WalshJohn W. Walsh President & Chief Executive Officer Alpha-1 Foundation

National Health Council President Myrl Weinberg, CAEMyrl Weinberg, CAEMyrl Weinberg, CAEMyrl Weinberg, CAE ex-officio member

David W. BeierDavid W. BeierDavid W. BeierDavid W. Beier Senior Vice President, Global Government Affairs Amgen

Pat FordPat FordPat FordPat Ford----Roegner, MSW, RN, FAANRoegner, MSW, RN, FAANRoegner, MSW, RN, FAANRoegner, MSW, RN, FAAN Chief Executive Officer American Academy of Nursing

RichardRichardRichardRichard L. Gelula L. Gelula L. Gelula L. Gelula Chief Executive Officer National Sleep Foundation

W. Mark Hamilton, Ph.D.W. Mark Hamilton, Ph.D.W. Mark Hamilton, Ph.D.W. Mark Hamilton, Ph.D. Executive Director American Mental Health Counselors Association

Harry JohnsHarry JohnsHarry JohnsHarry Johns President & Chief Executive Officer Alzheimer’s Association

John H. Klippel, MDJohn H. Klippel, MDJohn H. Klippel, MDJohn H. Klippel, MD President & Chief Executive Officer Arthritis Foundation

Bill McLinBill McLinBill McLinBill McLin Executive Director Asthma and Allergy Foundation of America

Ronald MillerRonald MillerRonald MillerRonald Miller Senior Director, Public Policy Bristol-Myers Squibb Company

Suzanne MintzSuzanne MintzSuzanne MintzSuzanne Mintz President National Family Caregivers Association

Kevin RigbyKevin RigbyKevin RigbyKevin Rigby Vice President, Public Affairs Novartis Pharmaceuticals Corporation

Heller An ShapiroHeller An ShapiroHeller An ShapiroHeller An Shapiro Executive Director Osteogenesis Imperfecta Foundation

Greg SimonGreg SimonGreg SimonGreg Simon President FasterCures

Steven TaylorSteven TaylorSteven TaylorSteven Taylor Chief Executive Officer Sjögren’s Syndrome Foundation

Karen WilliamsKaren WilliamsKaren WilliamsKaren Williams President National Pharmaceutical Council, Inc.

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2007 Annual Report 2007 Annual Report 2007 Annual Report 2007 Annual Report — Page Page Page Page ---- 21212121 ----

FINANCIAL REPORTFINANCIAL REPORTFINANCIAL REPORTFINANCIAL REPORT

Board of Directors National Health Council, Inc. Washington, D.C. We have audited the statements of financial position of National Health Council, Inc. as of December 31, 2007 and 2006, and the related statements of activities, functional expenses and cash flows for the years then ended. These financial statements are the responsibility of the Council’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of National Health Council, Inc. as of December 31, 2007 and 2006, and the changes in its net assets and its cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.

February 26, 2008

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Statements of Financial Position as of December 31 2002002002007777 2002002002006666 ASSETSASSETSASSETSASSETS CURRENT ASSETS:CURRENT ASSETS:CURRENT ASSETS:CURRENT ASSETS: Cash and cash equivalents Interest-bearing $1,689,636 $1,324,599 Non interest-bearing 4,457 14,216 Total cash and cash equivalents $1,694,093 $1,338,815 Accounts and pledges receivable 519,956 431,331 Prepaid expenses and other assets 13,583 6,525 Inventory 7,957 5,793 TOTAL CURRENT ASSETSTOTAL CURRENT ASSETSTOTAL CURRENT ASSETSTOTAL CURRENT ASSETS $2,235,589 $1,782,464 PROPERPROPERPROPERPROPERTY AND EQUIPMENTTY AND EQUIPMENTTY AND EQUIPMENTTY AND EQUIPMENT 57,787 17,099 OTOTOTOTHER ASSET:HER ASSET:HER ASSET:HER ASSET: Lease deposit 8,604 8,604 TOTAL ASSETSTOTAL ASSETSTOTAL ASSETSTOTAL ASSETS $2,301,980 $1,808,167 LIABILITIES AND NET ASSETSLIABILITIES AND NET ASSETSLIABILITIES AND NET ASSETSLIABILITIES AND NET ASSETS CURRENT LIABILITIES:CURRENT LIABILITIES:CURRENT LIABILITIES:CURRENT LIABILITIES: Accounts payable $62,404 $47,426 Accrued expenses 31,146 24,616 Deferred revenue 629,732 457,068 TOTAL CUTOTAL CUTOTAL CUTOTAL CURRENT LIABILITIESRRENT LIABILITIESRRENT LIABILITIESRRENT LIABILITIES $723,282 $529,110 NET ASSETS:NET ASSETS:NET ASSETS:NET ASSETS: Unrestricted $584,853 $271,027 Temporarily restricted 993,845 1,008,030 TOTAL NET ASSETSTOTAL NET ASSETSTOTAL NET ASSETSTOTAL NET ASSETS $1,578,698 $1,279,057 TOTAL LIABILITIES AND NET ASSETSTOTAL LIABILITIES AND NET ASSETSTOTAL LIABILITIES AND NET ASSETSTOTAL LIABILITIES AND NET ASSETS $2,301,980 $1,808,167 L REPORT L REPORT L REPORT L REPORT ———— CONTINUE CONTINUE CONTINUE CONTINUEDDDD

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Statements of Activities for the years ended December 31, 2007 2006 Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total SUPPORT AND REVENUESUPPORT AND REVENUESUPPORT AND REVENUESUPPORT AND REVENUE:::: Support: Membership dues $ 1,088,461 $ - $ 1,088,461 $ 920,937 $ - $ 920,937 Sponsorship contributions - 1,082,800 1,082,800 - 1,515, 500 1,515,500 Interest income 60,213 - 60,213 33,012 - 33,012 Publication sales and registrations 20,549 - 20,549 25,540 - 25,540 Honoraria 9,750 - 9,750 11,000 - 11,000 Other income 3,864 - 3,864 4,656 - 4,656 Net assets released from restrictions 1,096,985 (1,096,985) - 939,712 (939,712) - TOTAL SUPPORT AND REVENUETOTAL SUPPORT AND REVENUETOTAL SUPPORT AND REVENUETOTAL SUPPORT AND REVENUE $ 2,279,822 $ (14,185) $ 2,265,637 $ 1,934,857 $ 575,788 $ 2,510,645 EXPENSES:EXPENSES:EXPENSES:EXPENSES: Program services: Member services $ 1,068,095 $ - $ 1,068,095 $ 904,125 $ - $ 904,125 Special projects 315,695 - 315,695 280,491 - 280,491 Conferences 126,552 - 126,552 141,607 - 141,607 Publications 87,782 - 87,782 54,035 - 54,035 Integrated Patient-Centered Care 74,781 - 74,781 161,471 - 161,471 Total program services $ 1,672,905 $ - $ 1,672,905 $ 1,541,729 $ - $ 1,541,729 Supporting services: General and administrative $ 125,052 $ - $ 125,052 $ 119,414 $ - $ 119,414 Governance 65,982 - 65,982 41,441 - 41,441 Strategic Planning 59,359 - 59,359 1,609 - 1,609 Membership development 35,840 - 35,840 41,205 - 41,205 Fundraising 6,858 - 6,858 4,859 - 4,859 Total supporting services $ 293,091 $ - $ 293,091 $ 208,528 $ - $ 208,528 TOTAL EXPENSESTOTAL EXPENSESTOTAL EXPENSESTOTAL EXPENSES $ 1,965,996 $ - $ 1,965,996 $ 1,750,257 $ - $ 1,750,257 CHANGE IN NET ASSETSCHANGE IN NET ASSETSCHANGE IN NET ASSETSCHANGE IN NET ASSETS $ 313,826 $ (14,185) $ 299,641 $ 184,600 $ 575,788 $ 760,388 NET ASSETS, BEGINNING OF YEARNET ASSETS, BEGINNING OF YEARNET ASSETS, BEGINNING OF YEARNET ASSETS, BEGINNING OF YEAR 271,027 1,008,030 1,279,057 86,427 432,242 518,669 NET ASSETS, END OF YEARNET ASSETS, END OF YEARNET ASSETS, END OF YEARNET ASSETS, END OF YEAR $ 584,853 $ 993,845 $ 1,578,698 $ 271,027 $ 1,008,030 $ 1,279,057

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FINANCIAL REPORT FINANCIAL REPORT FINANCIAL REPORT FINANCIAL REPORT ———— CONTINUED CONTINUED CONTINUED CONTINUED

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