Regence BlueCross BlueShield Commits $600,000 to Umpqua Golf Tournament
January 25, 2012 -- When Umpqua Bank President and CEO Ray Davis joined Peter Jacobsen to give $100,000 to the “I Have a Dream” Foundation and the Randall Children’s Hospital at Legacy Emanuel, one sponsor was missing from the podium – Mark Ganz – and no one mentioned his name.
Ganz is the CEO of Cambia Health Solutions, formerly known as The Regence Group. Last spring he announced, in a press release, that Regence had become the Pro-Am sponsor of the Umpqua Golf Tournament, saying, “We are very pleased to partner with Umpqua Bank and Peter Jacobsen SPORTS on a great community event that will help Oregon’s children. We hope other businesses will join us in bringing much-needed support to these tremendous local nonprofits.”
As the Pro-Am sponsor, Ganz authorized a $200,000 check from Regence BlueCross BlueShield’s marketing budget – guaranteeing the tournament another $400,000 for the next two years, according to information leaked to The Lund Report.
During the tournament, Ganz was able to walk around the Portland Golf Course and mingle with professionals such as Arnold Palmer and Jacobsen at the club where he’s a member.
It’s unlikely that this $600,000 expenditure will appear on any of the financial reports that Regence provides the Oregon Insurance Division. Insurers must share the amount they spend on marketing in their quarterly reports, but not in any detail, according to Cheryl Martinis, spokesperson.
When Scott Burton, spokesperson for Regence was asked for an explanation about this $600,000 marketing expenditure, he declined to respond to The Lund Report. After this article was published, however, Georganne Benjamin, director of strategic communications for Regence, gave an explanation.
Also, about the same time that Ganz decided to become the tournament’s Pro-Am sponsor, Regence BlueCross BlueShield filed for a 22.1 percent rate increase for individual policy holders, and was granted a 12.8 percent increase by the Insurance Division.
Now Regence is awaiting word on another rate increase for small businesses, and, according to information obtained by The Lund Report, is preparing to ask for another rate increase for individual policyholders.
Regence has also requested a 7.4 percent increase for its portability insurance plans, which would impact 5,882 Oregonians on April 1 if approved by the Insurance Division.
Non-Profits Benefit from Umpqua Bank Challenge
The 2011 Umpqua Bank Challenge drew nearly 15,000 spectators and 28 professionals from across the LPGA, Nationwide, PGA and Champions Tours participated, according to Amy Biery, director of communications for Peter Jacobsen SPORTS.
The $100,000 raised by the inaugural Umpqua Bank Challenge will help the I Have a Dream Foundation – Oregon implement key efforts at their Dreamer School, such us providing 60 academic tutors in reading and writing for their kindergarten through second graders. Funds contributed to Randall Children’s Hospital will be used to support a family conference and resource room on the 3rd floor of their new state-of-the-art facility, she said, adding, “We know that this amount will have a significant impact on the good work that they do for our community and we are looking forward to partnering with both deserving organizations again in 2012.”
“The Umpqua Bank Challenge is an opportunity to give back to the city of Portland and to organizations that are doing such important work to support the health and well-being of our community's children and families,” said Davis. “The positive impact of our work in year one is significant and I look forward to seeing that grow as the Challenge does.”
Randall Children’s Hospital opens on Legacy Emanuel’s campus February 26, and construction began in August 2009. Physicians and nurses specializing in pediatrics will be providing compassionate medical and surgical care using leading technology in this healing environment designed just for children.
Four times the size of the former hospital, the building is 334,000 square feet with nine floors and 165 beds. All patient rooms are private, except for seven twin rooms in the Neonatal Intensive Care Unit.
The cost for the new facility and the Legacy Emanuel Medical Center Emergency Department renovation project is $245 million, 90 percent funded by Legacy Health.
“Randall Children’s Hospital is very proud of the excellent care our physicians and caregivers provide, and now they have a dedicated facility that reflects the quality of their care,” according to Dr. George Brown, president and chief executive officer for Legacy Health.
“Oregon’s two children’s hospitals are often at or near capacity,” said Dr. Molly Burchell, Legacy Health’s clinical vice president of pediatrics. “ As one of Oregon’s largest providers of pediatric inpatient and trauma services, Randall Children’s Hospital receives nearly 100,000 visits a year. Our new home will care for our region’s children well into the future.”
Printer-friendly version
Comments
Good reporting, thanks for doing this.
Regence, like every good corporate profiteer, loves a tax break--especially one that comes with the bonus of marketing. Even more special, this insurance company drives health care costs up to boot!
As a physician who has grown weary of health care activism and has moved primarily to education activism now, I am appalled!
I know all about Alder Elementary, the "first Dreamer School of the nation!" A "magnet" for insanely poor, highly mobile kids speaking ~20 different languages.
As if this model can be scaled up for ALL poor kids!!!
So we have grossly underfunded schools, health care and other social safety nets that funnel more people down the schools to prison pipeline!
Let's get rid of these guys! Time for single payer!
Kris Alman MD
After reading the Lund Report’s article regarding Regence’s sponsorship of the 2011 Umpqua Bank Challenge, we wanted to provide readers the facts regarding this community sponsorship.
As the Pro Am title sponsor of the Umpqua Bank Challenge, Regence committed $190,000 in 2011, $190,000 in 2012 and $195,700 in 2013 in sponsorship fees.
From our inception, Regence has always helped support important charitable causes through sponsorships and donations. This particular sponsorship provides visibility for Regence and also supports a good cause. Our employees also recognize the importance of community giving. Last year, through our Employee Giving Campaign they personally contributed more than $1.2 million (which was then matched by the company on a 50% basis) to charitable causes of their choice, including 550 Oregon nonprofits.
-Georganne Benjamin
Regence Asst. Director of Strategic Communications
Yes, please don't mix what employees generously contributed to charitable causes knowing there would be a 50% match by the company with what was clearly committed out of the company budget directly to the golf club sponsoring the event. What employees contribute, as any charitable donor, is not a marketing opportunity and they don't seek recognition for themselves or the company for it.
This sponsorship is different and should conform to standards of meeting the criteria for non-conflict of interest since it's leadership making that decision and in this instance, leadership had something to gain personally, as pointed out by another poster.
Georganne,
My question is not about the cost of the sponsorship or how much good Regence does with their charitable giving. It is clear Regence is generous in the community and others should look to them as an example in this way. My concern is what was the procurement and marketing plan that recommended sponsoring this event. Mr. Ganz is a member of the golf club that this event was hosted. He stands to personally gain from the event being hosted by his club. If he made the decision to commit to the sponsorship isn't that a conflict of interest?
Thanks Georganne for clarifying the contributions by Regence to the Umpqua Golf Challenge -- I am very apprevciative and I know that our readers will now have a better understanding of this issue
Diane Lund-Muzikant
Editor
The Lund Report
I wish your stories had a FB badge so we could PST individual stories like this one.
The other issue that is not fully addressed is the conflict of interest for Mark Ganz. I would like to see the marketing plan and procurement process for Regence making this decision. If Mark made the decision to direct company money to a club that he also has an ownership stake in as a member than that should be examined.
Regence has every right to spend marketing dollars how they see fit as long as the people that make those decisions do not also personally benefit from it as well.
And that's nothing new. Management used to take week long "meetings" at Sun River and other fancy places. They are constantly moving employees around the floor or from one floor to another. That all costs money to move desks and phone/computer lines: we'd been told each cost center was charged about $450 for each person it moved. Why isn't that money being used to bring premiums down? And while employees' benefits are cut, upper level management and board members continue to see extraordinary pay and perks. I bet you won't see a claims analyst walking around with Arnold Palmer.
Although Regence says it must take an active part in improving people's health, lowering premiums so more people could afford health coverage, not giving money to a niche sport.
To the reader who wanted to know if everyone received the 12.8 percent increase by Regence last year who had individiual polilcies, that figure represents the average and people who were older, had more medical claims and other factors played a role and could have increased their monthly premium. I do not have that data at my disposal
Diane Lund-Muzikant
Editor
The Lund Report
Diane,
Did every person who had insurance with Regence receive exactly 12.8% increase to the monthly premium we were paying?
-
Thank you Lund Report for exposing such dirty matters! Now the Regence premium payers have a better idea why their premiums get higher and higher... It's for the golf tournament!
Oh my god. Thank you for continuing to shine a light on this self-serving organization and self-serving man (Ganz). Consumers in Oregon are walking away from this sleazy outfit, as well they should. $600,000 is a tremendous amount of money! Unbelievable.
Post new comment