2012 Annual Report

National Health Council Uniting the Patient Voice

Table of Contents Overview from the Chairperson and the President ................................ 1

Uniting the Patient Voice in Public Policy and Research

Affordable Care Act and the Supreme Court ......................................................................................... 2

Essential Health Benefits ........................................................................................................................ 2

Patient-Centered Outcomes Research and Comparative Effectiveness Research ................................. 3

The MODDERN Cures Act.................................................................................................................... 4

FDA Issues ............................................................................................................................................. 5

Advancing Translational Sciences ......................................................................................................... 5

Health Insurance Portability and Accountability Act ............................................................................. 6

HealthResearchFunding.Org .................................................................................................................. 6

Supporting the Patient Advocacy Community

Standards of Excellence Certification Program® .................................................................................... 7

A Different Normal: Living with a Chronic Condition ......................................................................... 7

Strengthening Our Emotional Brand ...................................................................................................... 8

Voluntary Health Leadership Conference ............................................................................................. 9

NHC Affinity Groups and Professional Development Opportunities .................................................... 9

2011 VHA Revenue Survey ................................................................................................................. 10

2012 Management Compensation Report ........................................................................................... 11

BoardSource Partnership ...................................................................................................................... 11

Extending Our Reach

New Members in 2012 ......................................................................................................................... 11

NHC Voice before Stakeholders .......................................................................................................... 12

NHC in the News ................................................................................................................................. 13

International Alliance of Patients’ Organizations ................................................................................ 13

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Overview from the Chairperson and the President

In the 92 years since the National Health Council (NHC) was established, 2012 stands out as a

year marked with unprecedented policy triumphs and advancements on behalf of people living

with chronic diseases and disabilities.

The NHC succeeded in getting recommendations it championed into the proposed

regulations for essential health benefits (EHB) that will be provided through state health

exchanges.

The NHC’s ground-breaking legislation – the MODDERN Cures Act – was introduced in

the House of Representatives in late 2011 and has generated strong bipartisan support.

This transformative legislation will speed the development of new and better treatments

and diagnostic tests for patients with unmet medical needs.

The NHC secured specific provisions in the Prescription Drug User Fee Act agreement

that will increase patient involvement in drug reviews, including the creation of a patient-

focused benefit-risk framework for regulatory decision making, improved regulatory

science to encourage biomarkers and patient-reported outcomes in clinical trials, and

increased resources for advancing treatments for rare diseases.

The implementation of health care reform staggered forward, stymied by legal battles.

But the patient advocacy community stood strong in its support of the new law and

presented a united voice under the NHC banner.

This past year will be remembered for the NHC’s continuing advocacy for patient representation

in every stage of the public policy process. As a result of the NHC’s efforts, patients are now

essential and permanent stakeholders in Washington, DC, and will continue to mold the health

care landscape in a positive way.

With visionary leadership from the patient advocacy community, the NHC will ensure that this

engagement is specific, defined, and truly meaningful for people with chronic diseases and

disabilities and their family caregivers.

Larry Hausner

Chair

2012 NHC Board of Directors and

Chief Executive Officer

American Diabetes Association

Myrl Weinberg, FASAE, CAE

President

National Health Council

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Uniting the Patient Voice in Public Policy and Research Through its collective effort with the patient advocacy community, the National Health Council

(NHC) has created momentum in Washington, DC, for health care stakeholders and policy

makers to recognize patients as an essential part of health care policy debates. At the heart of all

major policy issues was the NHC’s commitment to Putting Patients First®.

Affordable Care Act and the Supreme Court

In the two years since the Affordable Care Act (ACA) was first signed into law, the NHC has

continued to work closely with other stakeholders to ensure implementation efforts include

patient representation at each step in the public policy process. To showcase the NHC’s

unwavering show of support for the ACA, NHC president Myrl Weinberg and the chief

executive officers of approximately 30 NHC member patient advocacy organizations signed a

joint statement, which was shared with reporters and picked up by approximately 100 media

websites.

Despite many challenges to the constitutionality of the law, in June the Supreme Court upheld

the ACA and ruled that under Congress’ taxing power, the Federal government has the authority

to require individuals not covered by an employer plan or public insurance plan to purchase

health insurance coverage. However, the Court limited Congress’ ability to require states to

expand their Medicaid program.

To assist patient advocacy organization members with broadcasting their press statements

following the Court’s decision, the NHC created a webpage with links to the Council’s news

release and the statements of 27 member patient advocacy organizations. In addition, the NHC

hosted a policy briefing attended by more than 100 representatives from the patient community,

federal agencies, and the media. Participants heard from policy experts who discussed the impact

of the court’s decision on patients and the next steps to be taken by various stakeholder

communities including patients, providers, payers, and state policymakers.

Essential Health Benefits

The NHC continued to score impressive gains in the creation of the essential health benefits

(EHB) package that will be provided through the state health exchanges beginning in 2014.

In January, the NHC hosted a briefing on EHBs attended by more than 120 Congressional staff

and representatives from various stakeholder organizations. Expert speakers offered background

information on the issue, discussed the NHC’s work, and offered a pathway for moving forward

toward creating an EHB package to meet the needs of patients. The NHC continued this

momentum by submitting official comments to advocate for inclusion of patient protections and

joined with more than 100 other health care organizations to support an EHB package with

federal oversight mechanisms, additional patient protections, and a robust drug formulary based

on the state-selected benchmarks.

In November, Health and Human Services Secretary Kathleen Sebelius released a proposed rule

on the Patient Protection and Affordable Care Act; Standards Related to Essential Health

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Benefits, Actuarial Value, and Accreditation. Three specific provisions championed by the NHC

were addressed in the proposed rule:

Drug plans can follow the state benchmark’s formulary, as the NHC recommended. The

proposed rule states in part, “A plan would cover at least the greater of: 1) one drug in

every category and class; or 2) the same number of drugs in each category and class as

the EHB-benchmark plan.” The proposed rule goes on to state, “A health plan providing

essential health benefits must have procedures in place that allow an enrollee to request

clinically appropriate drugs not covered by the health plan.”

The proposed rule includes language to assure non-discrimination, a major issue for

people with chronic conditions and one that the NHC addressed in its EHB

recommendations. The proposed rule mandates that states monitor and identify

discriminatory benefit designs.

The NHC’s recommendation to limit the ability of health plans to substitute benefits is

addressed. According to the proposed rule, substitutions could only occur within benefit

categories, not between different benefit categories.

There is still work to be done to define how the anti-discrimination provisions will operate, and

an oversight process is still to be determined. Moving forward, the NHC will continue to push

for an EHB package that best meets the needs of people with chronic diseases and disabilities.

Patient-Centered Outcomes Research and Comparative Effectiveness Research

Vigorously advocating on behalf of the patient community, the NHC was a leading stakeholder

in the discussions surrounding Patient-Centered Outcomes Research (PCOR). The NHC framed

a robust process for continuously soliciting and integrating input from patients and patient

advocacy organizations in comparative effectiveness research (CER).

The Patient-Centered Outcomes Research Institute (PCORI) released its Draft National Priorities

for Research and Research Agenda in January. The document outlined key research areas that

will produce information that patients and family caregivers need in order to make important

health care decisions. In response, the NHC submitted comments on the research agenda

emphasizing the need to define a specific role for patients in the CER processes.

In September, PCORI released its draft Methodology Report for PCOR, and the NHC responded

with four detailed recommendations: establish a more explicit definition of patient informant;

enhance guidance on methods for patient engagement; reframe language on the patient-reported

outcomes standard; and ensure a balanced perspective on conflict of interest.

In October, the NHC published an article in Health Affairs and proposed the creation of usability

criteria to be applied to PCORI-funded research studies to help determine whether the research

findings are useful in making specific treatment decisions. An independent evaluation of the

findings would help decision makers understand the strength of the research, its place in the

context of other existing evidence, and how the research could inform real-world decisions.

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When the research is distributed, all stakeholders would know if it met the threshold for use in

specific medical decision making by patients, family caregivers, and health care providers.

The NHC also participated in shaping PCORI’s first patient engagement workshop in October.

Building off of this workshop, the NHC will continue to work closely with PCORI and assist in

the development of truly patient-focused outcomes research.

The MODDERN Cures Act

The NHC’s game-changing legislation, the Modernizing Our Drug and Diagnostic Evaluation

and Regulatory Networks (MODDERN) Cures Act, garnered bipartisan support in a year marked

with deep divisions between Congressional Democrats and Republicans.

The MODDERN Cures Act encourages the development of better diagnostic tools and the co-

development of diagnostics and drugs to predict the safe, effective, and efficient use of

medicines. The MODDERN Cures Act also creates a new class of drugs called “dormant

therapies” – medicines that address conditions with limited or no treatment options – and

establishes a predictable timeline for the introduction of low-cost generic equivalents.

To build understanding and support for the legislation, the NHC hosted a briefing on Capitol Hill

to educate Congressional staff, NHC members, and other stakeholders regarding the MODDERN

Cures Act. The panel of presenters included Chris Hempel, who started her own biotech

company to conduct a clinical trial for a rare disease that her twin daughters have; Rhonda

Voskuhl, a UCLA researcher who is working on a promising but unpatentable drug to treat

multiple sclerosis; Ben Roin, an expert on the patent law’s effect on medical innovation; Richard

Heimler, a cancer survivor who has benefited from a companion diagnostic that identified the

right treatment for him; and Andy Fish, an expert on the diagnostics industry.

(From Left to Right) NHC President

Myrl Weinberg; Chris Hempel, Patient

Advocate; Rhonda Voskuhl, MD,

Professor, Department of Neurology,

UCLA School of Medicine; Ben Roin,

JD, Hieken Assistant Professor of Patent

Law, Harvard Law School; Richard

Heimler, Patient Advocate; Andrew Fish,

JD, Executive Director, AdvaMedDX;

Marc Boutin, NHC Executive Vice

President and Chief Operating Officer.

The NHC worked in tandem with its member organizations to spread the word about the need for

new cures and diagnostics for people with unmet medical needs. Representatives from the ALS

Association, Alzheimer’s Association, Easter Seals, Mesothelioma Applied Research

Foundation, and the National Osteoporosis Foundation joined the NHC at a February news

conference hosted by lead cosponsor Representative Leonard Lance in New Jersey. Many NHC

member organizations made the MODDERN Cures Act one of their legislative “asks”

throughout the year. Additionally, the NHC was joined by member and non-member

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organizations in creating a letter of endorsement for the MODDERN Cures Act; the letter was

signed by the NHC and 48 individual organizations.

The NHC also took part in a documentary, “Here. Us. Now.,” which highlights the need for

policies such as the MODDERN Cures Act to help bring additional cures and treatments to

patients with rare diseases.

As of November 2012, the bill had 48 cosponsors from both parties in the House showing an

impressive level of bipartisan support.

FDA Issues

Congress included three patient-focused provisions advocated by the NHC in the Food and Drug

Administration (FDA) Safety and Innovation Act, which reauthorized separate user fee programs

for drugs, devices, generic drugs, and biosimilars, including the Prescription Drug User Fee Act

(PDUFA). The three provisions were the creation of an objective, qualitative benefit-risk

framework; expanded use of biomarkers and patient-reported outcomes in clinical trials; support

for regulatory policy, procedures, and guidance to encourage the development of treatments for

rare diseases. The act will create the first benefit-risk framework for the FDA to use in its

decision-making process. It will also be the first such framework for any regulatory agency in the

world.

The NHC applauded members of Congress for their quick, bipartisan passage of the user fee

legislation.

FDA is in the early stages of the implementation of a new benefit-risk framework that will reflect

input from the patient community in the drug approval process. The NHC is working with FDA

to develop a systematic process to seek patient input at various stages of regulatory decision

making.

One of the first steps in this process was to hold a public meeting to better understand the patient

perspective on benefits-risks and how this perspective varies between disease categories. The

NHC created an outline to determine the 20 disease categories on which the FDA will base 20

meetings that are mandated by PDUFA. The NHC will continue to work with the FDA to ensure

patients’ perspectives on benefits-risks are included in these discussions moving forward.

Advancing Translational Sciences

In 2012, NHC President Myrl Weinberg was appointed to the National Institutes of Health (NIH)

National Center for Advancing Translational Sciences (NCATS) Cures Acceleration Network

(CAN) Review Board. NCATS aims to speed the translation of basic discoveries into new drugs,

diagnostics, and medical devices to reach the end user – the patient. To help accomplish these

goals, NCATS has established a National Advisory Council and the CAN Review Board. The

review board advises and provides recommendations to the NCATS director on identifying

significant barriers to successful translation of basic science into clinical application.

In May, NCATS announced that it was partnering with three businesses, Pfizer, AstraZeneca,

and Eli Lilly (all of whom are members of the NHC) to find new therapeutic targets for

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compounds owned by industry but not brought to market. A statement issued by the NHC, which

was sent to the media and policy makers on Capitol Hill, praised the initiative as a way to help

deliver cures and treatments to patients with chronic diseases and disabilities. The NHC made

clear that this initiative would complement – and not supplant – the MODDERN Cures Act.

Health Insurance Portability and Accountability Act

The NHC is committed to reducing barriers to health research.

To that end, the NHC conducted focus group meetings of patients

and caregivers to gather their views on the federal Health Insurance

Portability and Accountability Act (HIPAA) Privacy Rule and its

ramifications for medical research.

The study’s findings suggested that although patients and family

caregivers will generally support changes to the HIPAA Privacy

Rule, getting agreement on what changes to make to the rule will be

a challenge. The findings also suggested that patients and family

caregivers will want some personal and all contact information

deleted from health records used for research.

The focus groups included participants from across the U.S., including adult patients, family

caregivers of children with chronic conditions, and family caregivers of adults with chronic

mental conditions that limit their ability to live independently. Prior to the focus groups, no

participant had been aware of the HIPAA Privacy Rule; however, all participants in the study

considered medical research essential to advancing the discovery of better treatments and cures.

HealthResearchFunding.Org

On November 1, 2012, the NHC closed its web database of worthy, peer-reviewed health

research proposals and national health organizations interested in funding research.

HealthResearchFunding.Org was live to the research community for just under two years and

grew to include more than 600 peer-reviewed health research proposals and 2,000 registered

investigators. HealthResearchFunding.Org was a testament to the great health research being

conducted in this country.

The NHC learned that throughout the tenure of HealthResearchFunding.Org, patient advocacy

and nonprofit organization members struggled to fund the many worthy applications. The NHC

was unable to confirm that any matches were made as a result of the database. Therefore,

although HealthResearchFunding.Org experienced very positive and steady growth since its

launch, the NHC closed down the site.

The NHC remains committed to identifying other means for supporting and advancing research

in the search for new cures and treatments for people with chronic diseases and disabilities.

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Supporting the Patient Advocacy Community

Standards of Excellence Certification Program®

The NHC’s Standards of Excellence Certification Program® demonstrates that member patient

advocacy organizations (also known as voluntary health agencies or VHAs) are committed to the

highest standards of transparency, accountability, and public stewardship. In 2012, the Standards

of Excellence initial certification was awarded to the Amputee Coalition of America.

To assist the public in identifying worthy health charities to support, the NHC launched its first-

ever online Giving Guide. The NHC Giving Guide is a webpage that provides links to current

information about the accomplishments, finances, and governance of organizations that meet the

NHC’s Standards of Excellence. This information reinforces the strength and credibility of the

NHC member patient advocacy organizations.

A Different Normal: Living with a Chronic Condition

The NHC and WebMD, the leading national

website for health information, partnered in

2012 on two new initiatives to deliver

important messages and information from

member organizations to help people with

chronic diseases and disabilities and their

family caregivers.

A Different Normal: Living with a Chronic Condition is a blog focusing on people with chronic

conditions. The blog features guest writers from NHC’s member organizations and chronic

disease experts from WebMD. In August, the NHC and WebMD were honored by the National

Marfan Foundation (NMF) with NMF’s 2012 Health Media Award in recognition of their work

on the blog.

The NHC thanks the following member organizations that participated in this initiative through

November 2012:

• The ALS Association

• CaringBridge

• Mesothelioma Applied Research Foundation

• National Foundation for Ectodermal Dysplasias

• National Hospice and Palliative Care Organization

• National Marfan Foundation

• National Psoriasis Foundation

• Parkinson’s Action Network

• Society for Nuclear Medicine (SNM)

The NHC was pleased to have Anand Parekh, MD, Deputy Assistant Secretary for Health,

Department of Health and Human Services, who spoke at NHC’s VHA Committee meeting in

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September, post information on A Different Normal. Dr. Parekh focused his post on the federal

initiative to address the needs of people with multiple chronic conditions.

In October, the NHC and WebMD announced the launch of WebMD Answers, where consumers

and patients can pose personal health questions that can be asked and answered in a trusted

environment. This new initiative provides NHC members a means for promoting their work as

go-to sources on issues of concern to people with chronic conditions.

The NHC thanks the following member organizations that participated in WebMD Answers in

2012:

• American Autoimmune Related Diseases Association

• American Cancer Society

• National Alopecia Areata Foundation

• National Eczema Association

• National Osteoporosis Foundation

• National Psoriasis Foundation

Strengthening Our Emotional Brand

The NHC continued in its initiative to strengthen its emotional brand. By using an organizational

dashboard and member engagement scorecards, the NHC monitored levels of internal and

external progress toward building an organization with lasting endurance.

The NHC hired a consulting firm to conduct qualitative and quantitative surveys with members,

nonmembers, Congressional and regulatory staff, and the media. The results indicated that the

majority of NHC members are very positive about the NHC’s existing performance, products,

and services, and view the NHC as meeting or exceeding their expectations.

The NHC also created an ad hoc branding task force to work with NHC staff to develop high-

level goals and strategies for enhancing the NHC brand before select audiences.

The following people are members of the task force:

Matthew Bannister, Executive Vice President, Communications, American Heart

Association

George Guido, Vice President, Cullari Communications Group

Andre Hofelich, Director, Communications, National Pharmaceutical Council

Katherine McLane, Vice President, Communications and External Affairs, Lance

Armstrong Foundation

Kevin Rigby, Vice President and Country Head, Public Affairs,, Novartis

Pharmaceuticals

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

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Voluntary Health Leadership Conference

Each February, the NHC brings together the chief executive officers and their lead volunteers

from member patient advocacy organizations to learn about the latest in medical research and

health care policy, and to share best practices for meeting their organizational goals to serve

people with chronic diseases and disabilities.

The attendees at the 25th Annual Voluntary

Health Leadership Conference in 2012 heard

from leading authorities on issues of concern

to the patient advocacy community, covering

a broad range of topics such as the

MODDERN Cures Act, charity

accountability, and the World Health

Organization (WHO) initiative on prevention

and control of non-communicable diseases.

A special webpage was created with links to

video interviews of the nationally known

presenters and copies of their slide

presentations.

NHC Affinity Groups and Professional Development Opportunities

The NHC is the only organization of its kind that harnesses the collective power of the patient

community to address systemic health care issues that affect all patients, regardless of disease or

disability. Bringing together leaders in the patient advocacy community, the NHC helps to set the

agenda for public policy and education initiatives that improve the lives of people with chronic

diseases and disabilities and their family caregivers.

The following committees met in 2012:

Chief Development Officers Meeting

• Debra G. Neuman, Chief External Relations Officer, Arthritis Foundation, Chair

Chief Financial Officers Meetings

The chief financial officers from the NHC’s member VHAs gathered twice in 2012 in

Washington, DC, with the CFOs from member organizations of the National Human Services

Assembly.

• Bob Berdelle, Senior Vice President and CFO, United Way Worldwide, Chair

Chief Legal Officers Affinity Group

• David Livingston, Executive Vice President, Corporate Secretary & General

Counsel, American Heart Association, Chair

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Chief Scientific/Medical Officers and Research Directors Meeting

• Rose Marie Robertson, MD, Chief Science Officer, American Heart Association,

Chair

Communications Affinity Group

• Tamara Ruggiero, Vice President, Communications and Marketing, American

Kidney Fund, Chair

Government Relations Affinity Group (GRAG)

• Angela Ostrom, Director, Federal Relations, Epilepsy Foundation, Chair

• Kimberly Beer, Associate Director, Advocacy, Arthritis Foundation, Vice-Chair

Grassroots Team

• Steve Gibson, Chief Public Policy Officer, The ALS Association, Chair

Issue teams are comprised of participants from all NHC member categories and are charged

with exploring select NHC policy priorities each year. The following Issue Teams met in 2012:

Appropriations Issue Team

• Lisa Cox, Associate Director, Federal Government Affairs, American Diabetes

Association, Chair

FDA Issue Team

• Lauren Chiarello, Director, Federal Affairs, National Multiple Sclerosis Society,

Co-Chair

• Jennifer Sheridan Director, Policy Development, Parkinson’s Action Network,

Co-Chair

Health Care Reform Issue Team/Comparative Effectiveness Research Subcommittee

• Mary Andrus, Assistant Vice President, Government Relations, Easter Seals,

Chair

2011 VHA Revenue Survey

To help NHC member VHAs benchmark their revenue streams against those of their peers, the

NHC produced the 2011 VHA Revenue Survey. Results from the survey indicated an uptick in

total revenue.

Forty member organizations took part in the annual survey, which covered revenues for fiscal

years 2009, 2010, and 2011. As a member benefit, all VHA members received a generic report

detailing aggregate revenue data. Participants in the survey also were given a confidential,

customized report comparing their organization’s results against their peer group (small,

medium, large, and extra-large organizations) and against all survey participants in general.

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2012 Management Compensation Report

To help member voluntary health agencies better hone their recruiting and retention efforts, the

NHC and the National Human Services Assembly annually conduct a benchmarking survey of

compensation practices across a spectrum of more than 80 mid-level and executive positions.

The survey report also helps when responding to a question on the IRS Form 990 that asks

whether an organization uses comparability data for determining the compensation of staff.

Fifty-one NHC and National Human Services Assembly member organizations participated in

the 2012 report. The Management Compensation Report was made available for purchase in

December.

BoardSource Partnership

BoardSource membership provides nonprofit organizations with the tools they need to build a

high-performing board. NHC members use its resources and services to find solutions, leadership

tips, and governance knowledge about board-related issues.

In 2012, 33 member organizations took advantage of a special NHC discount offer and enrolled

69 of their board members and key staff at the national and chapter levels in BoardSource.

Extending Our Reach

New Members in 2012

The strength of the NHC comes from the fact that it provides a dynamic forum in which all

stakeholders can meet for reasoned discussion, collaboration, and advocacy. The NHC is

honored to have the following organizations and businesses join in this past year and become

part of NHC’s collective effort.

Professional and Membership Associations

Alliance for Biotherapeutics

American Nurses Association

American Pharmacists Association

National Minority Quality Forum

Nonprofit Organizations with an Interest in Health

Patient Services Inc.

Business and Industry

Allergan

Celgene Corporation

Associate Members

Quintiles

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NHC Voice before Stakeholders

In 2012, the NHC experienced a growing number of requests for staff to present before

influential health care and research entities on issues related to various NHC initiatives. NHC

staff presented before these groups and at other events:

Agency for Healthcare Research and

Quality

Better Business Bureau

BioCentury

Brookings Institution

C-Change

California Healthcare Institute

Center for Medical Technology

Coalition Against Major Diseases

Food and Drug Administration

Indiana University

Industrial College of Armed Forces,

National Defense University.

Institute of Medicine

International Alliance of Patients’

Organizations Global Patients

Congress

National Business Coalition on

Health

Patient Advocacy Leadership

Summit

Patient-Centered Outcomes Research

Institute

Partners in Patient Health

Plasma Protein Therapeutics

Association

Rare Disease and Orphan Drug

Leadership Conference

Rheumatology Collaborative

Institute

Teva Pharmaceutical Industries

Winston Health Policy Symposium

The NHC also presented at meetings and events of its member organizations including:

The ALS Association

American Liver Foundation

Arthritis Foundation

Asthma and Allergy Foundation of

America

Biotechnology Industry Organization

Drug Information Association

Eli Lily

Epilepsy Foundation

HealthHIV

National Alopecia Areata

Foundation

National Multiple Sclerosis Society

National Osteoporosis Foundation

National Pharmaceutical Council

Novartis

Pfizer Inc

Pharmaceutical Research and

Manufacturers Association

PKD Foundation

Roche

Sanofi

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NHC in the News

Because of its policy work in various areas, the NHC was called upon to provide comment and

insight on important health care issues in 2012. Here are a few of the publications in which the

NHC was featured:

USA Today, Good Housekeeping, Investor’s Business Daily, NJ.com, and Asbury Park

Press about the MODDERN Cures Act.

American Medical News, Inside Health Policy, Law360.com, and BioCentury about the

NHC’s recommendations for establishing essential health benefits that meet the needs of

people with chronic conditions.

Bloomberg News about personalized medicine.

The Pink Sheet, Inside Health Policy, and BiotechNOW about the reauthorization of

PDUFA.

Health Affairs about the need for setting usability criteria for comparative effectiveness

research and involving patients and patient organizations throughout the research

continuum.

The Food and Drug Law Institute and Nature Magazine about setting an FDA benefit-

risk balance that meets the needs of patients.

American Journal of Pharmacy Benefits op-eds about NHC’s work on the HIPAA

Privacy Act, the Supreme Court’s decision on the Affordable Care Act, and PCORI.

International Alliance of Patients’ Organizations

The International Alliance of Patients’ Organizations (IAPO) is a unique global alliance

representing patients of all nationalities across all disease areas, and the NHC was instrumental

in its creation and operations. In 2012, NHC’s Executive Vice President and Chief Operating

Officer Marc Boutin was elected to IAPO’s Governing Board.

IAPO held its 5th Global Patients Congress: Achieving Patient-Centred Healthcare: Indicators of

Progress and Success in London, England, from March 17-19. Both NHC President Myrl

Weinberg and Boutin attended the meetings in London.

The Congress examined how to measure the extent to which patient-centered health care is

achieved around the world. The Congress also highlighted examples of best practices of

promoting patient-centered health care and examined how meaningful indicators can be

developed to measure patient involvement within health care systems.

NATIONAL HEALTH COUNCIL, INC.

FINANCIAL STATEMENTSAND INDEPENDENT AUDITORS' REPORT

DECEMBER 31, 2012 AND 2011

NATIONAL HEALTH COUNCIL, INC.

FINANCIAL STATEMENTS

DECEMBER 31, 2012 AND 2011

TABLE OF CONTENTS

Independent auditors' report..............................................................................1 - 2

Audited financial statements

Statements of financial position..............................................................................3

Statements of activities......................................................................................4 - 5

Statements of functional expenses.....................................................................6 - 7

Statements of cash flows.........................................................................................8

Notes to financial statements...........................................................................9 - 16

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INDEPENDENT AUDITORS' REPORT

To the Board of DirectorsNational Health Council, Inc.Washington, DC

We have audited the accompanying statements of financial position of National Health Council, Inc.(Council) as of December 31, 2012 and 2011, and the related statements of activities, functional expenses, andcash flows for the years then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes thedesign, implementation, and maintenance of internal control relevant to the preparation and fair presentation offinancial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. Weconducted our audits in accordance with auditing standards generally accepted in the United States of America.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditors' judgment, including the assessmentof the risks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentationof the financial statements in order to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, weexpress no such opinion. An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of significant accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.

1.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the Council as of December 31, 2012 and 2011, and the changes in its net assets and itscash flows for the years then ended in conformity with accounting principles generally accepted in the UnitedStates of America.

Alexandria, VirginiaFebruary 06, 2013

2.

NATIONAL HEALTH COUNCIL, INC.

STATEMENTS OF FINANCIAL POSITION

DECEMBER 31, 2012 AND 2011

2012 2011ASSETS

Current assets:

Cash and cash equivalents $ 1,978,371 $ 1,941,142Sponsorships and accounts receivable 349,165 169,531Prepaid expenses and other assets 5,931 14,356

Total current assets 2,333,467 2,125,029

Property and equipment, net 16,074 41,908Deposits 8,604 8,604

Total assets $ 2,358,145 $ 2,175,541

LIABILITIES AND NET ASSETSCurrent liabilities:

Accounts payable $ 102,258 $ 113,427Accrued expenses 47,006 34,036Deferred member dues revenue 551,134 413,449

Total current liabilities 700,398 560,912

Deferred compensation payable 138,435 109,026

Total liabilities 838,833 669,938

Net assets:

Unrestricted 251,827 471,366Temporarily restricted 1,267,485 1,034,237

Total net assets 1,519,312 1,505,603

Total liabilities and net assets $ 2,358,145 $ 2,175,541

See accompanying notes to financial statements.3.

NATIONAL HEALTH COUNCIL, INC.

STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED DECEMBER 31, 2012

TemporarilyUnrestricted Restricted Total

Support and revenue:

Sponsorship income $ - $ 1,390,760 $ 1,390,760Membership dues 1,176,207 - 1,176,207Honoraria 10,250 - 10,250Interest income 5,604 - 5,604Publication sales and other income 2,929 - 2,929Net assets released from restrictions:

Satisfaction of donor restriction 1,157,512 (1,157,512) -

Total support and revenue 2,352,502 233,248 2,585,750

Expenses:

Program services:

Member services 1,740,254 - 1,740,254Special projects 227,182 - 227,182Conferences 182,293 - 182,293Publications 29,762 - 29,762

Total program services 2,179,491 - 2,179,491

Support services:

General and administrative 166,158 - 166,158Membership development 115,481 - 115,481Governance 89,390 - 89,390Strategic planning 7,273 - 7,273Fundraising 14,248 - 14,248

Total support services 392,550 - 392,550

Total expenses 2,572,041 - 2,572,041

Change in net assets (219,539) 233,248 13,709

Net assets, beginning of year 471,366 1,034,237 1,505,603

Net assets, end of year $ 251,827 $ 1,267,485 $ 1,519,312

See accompanying notes to financial statements.4.

NATIONAL HEALTH COUNCIL, INC.

STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED DECEMBER 31, 2011

TemporarilyUnrestricted Restricted Total

Support and revenue:

Sponsorship income $ - $ 1,312,200 $ 1,312,200Membership dues 1,192,602 - 1,192,602Interest income 6,068 - 6,068Honoraria 2,000 - 2,000Publication sales and other income 2,787 - 2,787Net assets released from restrictions:

Satisfaction of donor restriction 1,243,646 (1,243,646) -

Total support and revenue 2,447,103 68,554 2,515,657

Expenses:

Program services:

Member services 1,507,284 - 1,507,284Special projects 440,252 - 440,252Conferences 146,255 - 146,255Publications 47,333 - 47,333

Total program services 2,141,124 - 2,141,124

Support services:

General and administrative 168,606 - 168,606Membership development 105,279 - 105,279Governance 75,487 - 75,487Strategic planning 306 - 306Fundraising 13,485 - 13,485

Total support services 363,163 - 363,163

Total expenses 2,504,287 - 2,504,287

Change in net assets (57,184) 68,554 11,370

Net assets, beginning of year 528,550 965,683 1,494,233

Net assets, end of year $ 471,366 $ 1,034,237 $ 1,505,603

See accompanying notes to financial statements.5.

NATIONAL HEALTH COUNCIL, INC.STATEMENT OF FUNCTIONAL EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2012

Member services

Special projects Conferences Publications

Total program services

General and administrative

Membership development Governance

Strategic planning Fundraising

Total support services

Total expenses

Personnel costs: Salaries 925,322$ 63,355$ 74,753$ 16,378$ 1,079,808$ 114,191$ 76,337$ 50,965$ 854$ 9,419$ 251,764$ 1,331,572$ Fringe benefits 247,429 17,048 20,731 4,340 289,548 24,753 20,446 13,666 229 2,521 61,615 351,163 Fees: - Contract 236,455 131,355 60 4,513 372,383 92 61 41 6,001 8 6,204 378,587 Computer 29,820 989 1,165 256 32,230 1,781 1,190 795 12 147 3,925 36,155 Auditing and accounting 10,361 711 836 184 12,092 1,279 854 569 9 106 2,817 14,909 Legal 5,247 20 23 5 5,295 35 23 718 - 3 779 6,074 Graphic design - - 1,125 - 1,125 - - - - - - 1,125 Occupancy 134,815 9,234 10,882 2,386 157,317 16,644 11,115 7,412 116 1,377 36,664 193,981 Conferences, conventions and meeting 49,371 49 59,751 13 109,184 89 297 11,134 1 64 11,585 120,769 Depreciation and amortization 19,331 1,324 1,560 343 22,558 2,387 1,594 1,062 17 197 5,257 27,815 Membership dues 11,837 50 59 13 11,959 91 61 39 1 8 200 12,159 Travel 18,404 343 5,101 6 23,854 50 189 74 - 4 317 24,171 Telephone 10,664 398 476 91 11,629 617 520 656 4 51 1,848 13,477 Equipment rental and maintenance 13,650 935 1,102 241 15,928 1,685 1,125 750 12 139 3,711 19,639 Insurance 8,207 564 662 146 9,579 1,013 677 448 7 84 2,229 11,808 Printing 2,946 182 2,270 463 5,861 326 218 464 2 27 1,037 6,898 Office supplies 4,297 287 338 74 4,996 518 346 229 4 43 1,140 6,136 Postage and shipping 1,414 89 1,095 247 2,845 160 130 105 1 13 410 3,255 Publications and subscriptions 7,294 27 30 6 7,357 46 31 48 - 4 129 7,486 Bank charges and fees 2,306 155 182 40 2,683 279 186 124 2 23 614 3,297 Staff development 870 60 70 16 1,016 108 72 46 1 9 236 1,252 Messenger and express mail 214 7 22 1 244 14 9 45 - 1 69 313

1,740,254$ 227,182$ 182,293$ 29,762$ 2,179,491$ 166,158$ 115,481$ 89,390$ 7,273$ 14,248$ 392,550$ 2,572,041$

6.See accompanying notes to financial statements.

NATIONAL HEALTH COUNCIL, INC.STATEMENT OF FUNCTIONAL EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2011

Member services

Special projects Conferences Publications

Total program services

General and administrative

Membership development Governance

Strategic planning Fundraising

Total support services

Total expenses

Personnel costs: Salaries 713,670$ 152,493$ 62,740$ 26,398$ 955,301$ 109,761$ 67,775$ 41,712$ 190$ 8,751$ 228,189$ 1,183,490$ Fringe benefits 193,525 41,535 18,459 7,042 260,561 28,779 18,397 11,158 52 2,334 60,720 321,281 Fees: Contract 302,982 202,813 95 4,839 510,729 165 102 65 - 13 345 511,074 Computer 29,382 2,086 836 353 32,657 1,462 904 558 3 117 3,044 35,701 Auditing and accounting 11,705 2,502 1,029 435 15,671 1,799 1,112 682 4 144 3,741 19,412 Legal 9,035 356 52 21 9,464 92 57 179 - 7 335 9,799 Graphic design 1,500 - 1,404 375 3,279 - - - - - - 3,279 Occupancy 108,739 23,245 9,557 4,039 145,580 16,717 10,333 6,330 36 1,334 34,750 180,330 Conferences, conventions and meeting 35,899 218 41,990 - 78,107 - 354 10,022 - - 10,376 88,483 Depreciation and amortization 27,219 5,819 2,392 1,011 36,441 4,184 2,587 1,585 9 334 8,699 45,140 Membership dues 11,359 170 70 29 11,628 122 76 48 - 10 256 11,884 Travel 11,242 909 2,460 40 14,651 165 179 171 - 13 528 15,179 Telephone 14,609 2,144 743 300 17,796 1,203 833 739 3 96 2,874 20,670 Equipment rental and maintenance 10,730 2,292 943 398 14,363 1,650 1,020 625 4 132 3,431 17,794 Insurance 6,505 1,390 572 241 8,708 1,000 618 382 2 80 2,082 10,790 Printing 7,531 135 1,648 1,327 10,641 98 61 575 - 8 742 11,383 Office supplies 4,525 1,014 420 164 6,123 676 418 331 1 54 1,480 7,603 Postage and shipping 2,326 357 357 203 3,243 245 151 98 1 20 515 3,758 Publications and subscriptions 1,755 155 23 10 1,943 40 25 53 - 3 121 2,064 Bank charges and fees 1,578 337 139 59 2,113 244 151 91 1 19 506 2,619 Staff development 1,295 277 114 48 1,734 199 123 74 - 16 412 2,146 Messenger and express mail 173 5 212 1 391 5 3 8 - - 16 407

1,507,284$ 440,252$ 146,255$ 47,333$ 2,141,124$ 168,606$ 105,279$ 75,487$ 306$ 13,485$ 363,163$ 2,504,287$

7.See accompanying notes to financial statements.

NATIONAL HEALTH COUNCIL, INC.

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

2012 2011Cash flows from operating activities:

Change in net assets $ 13,709 $ 11,370

Adjustments to reconcile change in net assetsto net cash provided by operating activities:

Depreciation and amortization 27,815 45,140

Decrease (increase) in assets:Sponsorships and accounts receivable (179,635) (18,513)Prepaid expenses and other assets 8,425 (8,072)

Increase (decrease) in liabilities:Accounts payable (11,169) 20,825Accrued expenses 12,970 2,700Deferred member dues revenue 137,685 2,893Deferred compensation payable 29,409 28,473

Total adjustments 25,500 73,446

Net cash provided by operating activities 39,209 84,816

Cash flows from investing activities:Purchases of property and equipment (1,980) -

Net cash used in investing activities (1,980) -

Net increase in cash and cash equivalents 37,229 84,816

Cash and cash equivalents, beginning of year 1,941,142 1,856,326

Cash and cash equivalents, end of year $ 1,978,371 $ 1,941,142

See accompanying notes to financial statements.8.

NATIONAL HEALTH COUNCIL, INC.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2012 AND 2011

1. Organization

The National Health Council, Inc. (the Council) provides national focus for sharing common

concerns, evaluating needs, and pooling ideas and resources for national organizations in the health field.

The Council is a not-for-profit corporation exempt from income tax under Section 501(c)(3) of the Internal

Revenue Code. The Council has been designated a publicly supported organization under Section

170(b)(1)(A)(vi) of the same code.

2. Summary of significant accounting policies

Basis of presentation

The Council has presented its financial statements in accordance with U.S. Generally Accepted

Accounting Principles. Under those principles, the Council is required to report information regarding its

financial position and activities according to three classes of net assets:

Unrestricted Net Assets represents the expendable resources that are available for operations at

management's discretion.

Temporarily Restricted Net Assets represents resources restricted by donors as to purpose or by the

passage of time.

Permanently Restricted Net Assets represent resources whose use by the Council is limited by

donor imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed

by action of the Council. Income from the assets held is available for either general operations or specific

purposes, in accordance with donor stipulations.

The Council has no permanently restricted net assets at December 31, 2012 and 2011.

Basis of accounting

The financial statements are prepared on the accrual basis of accounting. Under the accrual

method, revenues are recognized when earned and expenses are recognized when incurred.

9.

NATIONAL HEALTH COUNCIL, INC.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2012 AND 2011

Use of estimates

The preparation of financial statements in conformity with U.S. Generally Accepted Accounting

Principles requires management to make estimates and assumptions that affect the reported amounts of

assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial

statements and the reported amounts of revenues and expenses and their functional allocation during the

reporting period. Actual results could differ from those estimates.

Cash and cash equivalents

For financial statement purposes, the Council classifies all highly liquid investments as cash

equivalents. At December 31, 2012 and 2011, cash and cash equivalents included checking account

deposits, certificates of deposit and a money market account. Certificates of deposit are recorded at cost

which approximates fair value.

Sponsorships receivable

Sponsorships receivable represent sponsorships pledged but not yet received. These items, which

are not collateralized, are stated at the amount management expects to collect from balances outstanding at

year-end. Based on management's assessment of the payment history with sponsors having outstanding

balances and current relationships with them, the Council has concluded that realization losses, if any, on

balances outstanding at year-end would be immaterial.

Property and equipment

Property and equipment are recorded in the financial statements at cost, net of accumulated

depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of

the assets as follows:

Furniture, equipment and software 3-5 yearsLeasehold improvements Life of lease

The Council's policy is to capitalize major additions and improvements over $500. Repairs and

maintenance which do not significantly add to the value of assets are expensed as incurred.

10.

NATIONAL HEALTH COUNCIL, INC.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2012 AND 2011

Income taxes

The Council is exempt from federal and local income taxes under Section 501(c)(3) of the Internal

Revenue Code on any net income derived from activities related to its exempt purpose. This code section

enables the Council to accept donations that qualify as charitable contributions to the donor. The Council

is taxed on net income from unrelated business activities. For the years ended December 31, 2012 and

2011, the Council did not have any income taxes from unrelated business activities.

The Council follows the authoritative guidance relating to accounting for uncertainty in income

taxes included in Accounting Standards Codification (ASC) Topic Income Taxes. These provisions

provide consistent guidance for the accounting for uncertainty in income taxes recognized in an entity’s

financial statements and prescribe a threshold of “more likely than not” for recognition and derecognition

of tax positions taken or expected to be taken in a tax return. The Council performed an evaluation of

uncertain tax positions for the years ended December 31, 2012 and 2011, and determined that there were

no matters that would require recognition in the financial statements or that may have any effect on its tax-

exempt status. Generally, tax returns are subject to examination by taxing authorities for up to three years

from the date a completed return is filed. If there are material omissions of income, tax returns may be

subject to examination for up to six years. It is the Council’s policy to recognize interest and/or penalties

related to uncertain tax positions, if any, in income tax expense. As of December 31, 2012 and 2011, the

Council had no accruals for interest and/or penalties.

Revenue recognition

Sponsorship income

Sponsorship payments or commitments received from donors to support certain Council events are

accounted for as non-exchange transactions.

The Council reports sponsorship income as temporarily restricted support if it is received with

donor stipulations that limits the use of the contribution. When a restriction expires, that is, when a

stipulated time restriction ends or a purpose restriction is accomplished, temporarily restricted net assets

are reclassified to unrestricted net assets and reported in the statement of activities as net assets released

from restrictions.

11.

NATIONAL HEALTH COUNCIL, INC.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2012 AND 2011

Membership dues

Membership dues are recognized over the period covered by the membership. Membership dues

received before the membership period begins are recorded as deferred revenue.

Functional allocation of expenses

The costs of providing the various programs and other activities have been summarized on a

functional basis in the statement of activities. Accordingly, certain indirect costs have been allocated

among programs and supporting services benefited based upon the ratio of salaries charged to each

functional area to total salaries.

3. Concentrations of credit risk

The Council maintains bank accounts that, at times, may exceed the Federal Deposit Insurance

Corporation (FDIC) limits. At December 31, 2011, the Council had bank deposits in excess of FDIC limits

$283,221. The Council had no bank accounts in excess of FDIC limits at December 31, 2012.

4. Property and equipment

The following is a summary of property and equipment held as of December 31:

2012 2011

Furniture, equipment and software $ 205,931 $ 203,950Leasehold improvements 42,439 42,439

Subtotal 248,370 246,389

Accumulated depreciation and amortization (232,296) (204,481)

Total $ 16,074 $ 41,908

Depreciation and amortization of property and equipment for the years ended December 31, 2012

and 2011 was $27,815 and $45,140, respectively.

12.

NATIONAL HEALTH COUNCIL, INC.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2012 AND 2011

5. Retirement Plans

The Council maintains a defined contribution retirement plan qualified under Internal Revenue

Code Section 403(b) covering substantially all employees. Contributions by the Council are based on fixed

percentages of compensation, up to 8%, based on the participants' years of service. The Council

contributed $88,489 and $73,174 to the 403(b) plan for the years ended December 31, 2012 and 2011,

respectively.

The Council also maintains a deferred compensation plan under Internal Revenue Code Section

457(b). Highly compensated employees with a minimum of six months of service are eligible to

participate. The Council contributed $8,000 to the 457(b) plan for each of the years ended December 31,

2012 and 2011.

Total expense under the 403(b) and 457(b) plans for the years ended December 31, 2012 and 2011

was $96,489 and $81,174, respectively.

Effective January 1, 2008, the Council adopted a nonqualified "ineligible 457(f) plan" within the

meaning of Section 457(f) of the Internal Revenue Code of 1986, as amended. Currently, the plan provides

benefits to the Council's President. The Council credits the participant's deferred compensation account

with annual contributions of $25,000 for five years beginning with the plan's effective date. The

contributions, including earnings thereon, fully vest on January 1, 2013 (the vesting date), assuming the

President is continuously employed by the Council during the five-year period. Total expense under this

plan for the years ended December 31, 2012 and 2011 was $29,409 and $28,473, respectively.

The Council also has established a supplemental tax deferred retirement plan under Internal

Revenue Codes Section 403(b). Under the Plan, participants are permitted to contribute a portion of their

compensation that accumulates on a tax-deferred basis.

6. Concentration of sponsorships

For the year ended December 31, 2012, the Council had 30% of total revenue from four sponsors

and 71% of sponsorship receivables from two sponsors. For the year ended December 31, 2011, the

Council had 29% of total revenue from three sponsors and 84% of sponsorship receivables from four

sponsors.

13.

NATIONAL HEALTH COUNCIL, INC.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2012 AND 2011

7. Commitments and contingencies

Operating leases

In August 2006, the Council entered into an eight-year lease for office space expiring in July

2014. Monthly lease payments increase at the rate of 2.50% on each anniversary of the lease. The Council

is responsible for paying a pro rata share of real estate taxes and other operating expenses for the building

during the year.

Rent and related expense was $193,981 and $180,330 for the years ended December 31, 2012 and

2011, respectively.

In August 2010, the Council entered in to a five year lease for office equipment expiring in July

2015. Monthly lease payments are $385.

Aggregate future minimum lease payments are as follows for the years ending December 31:

Office Lease Equipment Totals

2013 $ 181,062 $ 4,620 $ 185,6822014 107,157 4,620 111,7772015 - 2,695 2,695

Total $ 288,219 $ 11,935 $ 300,154

14.

NATIONAL HEALTH COUNCIL, INC.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2012 AND 2011

8. Temporarily restricted net assets

Temporarily restricted net assets consist of sponsorship contributions having donor-imposed

purpose restrictions that will be met by the Council in a future period. As of December 31, 2012 and 2011,

temporarily restricted net assets were available for the following programs:

2012 2011

Policy Development Fund $ 727,750 $ 636,799Prescription Drug User Fee Act V 70,447 39,064Independent Payment Advisory Board 33,601 58,851Comparative Effectiveness - Legislative Analysis 71,760 -Voluntary Health Agency Leadership Conference 179,979 144,772Congressional Briefings 36,939 44,685Gap Analysis - 10,777HIPAA 6,761 60,156Risk Evaluation and Mitigation Strategies - 25,000Health Groups in Washington Publication 10,596 14,133Washington Reps Retreat 40,000 -Progressive Approval 89,652 -

Total temporarily restricted net assets $ 1,267,485 $ 1,034,237

15.

NATIONAL HEALTH COUNCIL, INC.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2012 AND 2011

9. Net assets released from restrictions

Net assets were released from donor restrictions by incurring expenses satisfying the restricted

purpose. Purpose restrictions accomplished during the years ended December 31, 2012 and 2011 are as

follows:

2012 2011

Policy Development Fund $ 724,149 $ 658,839Prescription Drug User Fee Act V 90,764 124,064Independent Payment Advisory Board 25,250 85,730Comparative Effectiveness - 53,734Voluntary Health Agency Leadership Conference 182,293 103,381MODDERN Cures - 77,764Gap Analysis 10,777 29,223HIPAA 53,395 45,044Health Groups in Washington Publication 3,537 25,867Washington Reps Retreat 40,000 40,000Congressional Briefing 7,746 -Risk Evaluation and Mitigation Strategies 2,853 -Progressive Approval 16,748 -

Total net assets released from restrictions $ 1,157,512 $ 1,243,646

10. Subsequent events

In preparing the financial statements, the Council has evaluated events and transactions for

potential recognition or disclosure through February 06, 2013, which is the date the financial statements

were available to be issued. There were no subsequent events that require recognition of, or disclosure in,

these financial statements.

16.

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