2018 AAOS Orthopaedic Chairman John T. Gill, MD [email protected] PAC Annual Report 317 Massachusetts Ave, N.E. Washington, DC 20002 Table of Contents Letter from your Orthopaedic PAC Chair .............................................. 1 2018 Orthopaedic PAC Executive Committee ....................................... 2 Financial Highlights ............................................................................ 3 PAC Criteria for Giving ........................................................................ 6 Political Disbursements ...................................................................... 7 2018 Election Recap ......................................................................... 11 Orthopaedic PAC Programs ............................................................... 12 Expanding the PAC’s Political Footprint ............................................. 14 2018 PAC Comparisons by State ....................................................... 16 2018 Donor Thank You ...................................................................... 17 2018 In Review: Federal Legislative Accomplishments ....................... 23 Residents in Action ........................................................................... 25 ACCESS. INFLUENCE. VICTORIES. Letter from Your Orthopaedic PAC Chair Dear Colleague, It’s official! Orthopaedic PAC has reached its best two-year cycle in our history. We hit our $4 million goal and saw 15% growth from our previous cycle, a truly incredible feat. In addition to our outstanding fundraising growth, we saw a tremendous increase in our political footprint through engagement with state and federal lawmakers. In the 2018 election cycle, we supported over 320 candidates and Members of Congress, with a win rate of 90% in the House and 86% in the Senate. We also attended 1,200 events in DC and 120 events in-district, more than a 25% increase. We are the most active and unified PAC in the entire physician community—we have the best participation rate and are THE largest health care disburser! Together, with your support, we made history. Your incredible support allowed us to fight for some big wins for the house of orthopaedics. In 2018, the Independent Payment Advisory Board (IPAB) was repealed and the Children’s Health Insurance Program (CHIP) was reauthorized for ten years. The Sports Medicine Licensure Clarity Act, an AAOS led bill, was also signed into law this year. This bill provides legal protection for team physicians traveling across state lines. Throughout the past year, we have made great headway on reducing regulatory burdens to preserve the doctor-patient relationship. We have also made great progress on medical liability reform and on repealing the ban on physician owned hospitals. We will continue to fight hard for these issues, and more, in the new Congress. The 116th Congress will certainly look a lot different than the last, with over 90 new members. The new Congress will bring new challenges, as well as exciting opportunities. With a divided government, there is little chance that any controversial or partisan ideas will become law; however, many of the bills passed this Congress will serve as blueprints for future legislation that could be signed into law. This is our opportunity to make a mark on these bills while they are in their foundational stage. I would like to give a special thank you to the members of the Orthopaedic PAC Executive Committee, named in this report, who set our electoral strategy and priorities, in addition to raising money for the PAC. The guidance of a diverse and hard-working PAC Board ensures that your dollars are spent wisely to advocate effectively for the entire orthopaedic specialty. Thank you to every one of you who have supported the Orthopaedic PAC this cycle. Every AAOS member, as well as our patients, benefits from having a strong and vibrant political action committee. In 2019, we will celebrate the 20th Anniversary of the PAC and I encourage all PAC members to renew their support. Watch for our “Twenty for Twenty” program. And to those who have never joined the PAC: there is no time like today. Let’s continue make our voice heard on Capitol Hill together. Sincerely, John T. Gill, MD Chairman, Orthopaedic PAC Capitol Club Member 2018 ANNUAL REPORT 1 2018 Orthopaedic PAC Executive Committee The Orthopaedic PAC is fortunate to have dedicated leaders throughout the AAOS who govern the direction of the PAC. We thank them for their ongoing support and leadership. The PAC executive Committee, meets one to two times face-to-face annually and meets many times by conference call throughout the year. The PAC executive Committee sets our giving strategy and political priorities. Priorities for the 2017–2018 cycle included increasing our soft/ corporate dollars, increasing resident participation in the PAC, and increasing specialty participation, as well as further development of a peer- to-peer solicitation program. John T. Gill, MD Dirk Alander, MD Chairman Chair-Elect, Board of Specialties Dallas, TX Danville, PA Douglas Lundy, MD Adolph (Chick) Yates, MD Treasurer At-Large Member Atlanta, GA Pittsburgh, PA Ronald Delanois, MD Frederic Liss, MD Secretary At-Large Member Baltimore, MD Limerick, PA Amy Ladd, MD Jacob Calcei, MD Chair, Board of Specialties Resident Member Redwood City, CA New York, NY Wilford Gibson, MD Claudette Lajam, MD Chair, Council on Advocacy Chair, Advocacy Resources Committee Norfolk, VA New York, NY Basil Besh, MD Cassim Igram, MD Chair, Board of Councilors Chair, State Legislative and Fremont, CA Regulatory Issues Committee Iowa City, IA Robert Orfaly, MD Chair-Elect, Board of Councilors Tom Arend Portland, OR Ex-Officio Member Rosemont, IL Joseph Bosco, MD Second Vice President Stacie Monroe New York, NY Staff Liaison Washington, DC 2 Access. Influence. Victories. | AAOS ORTHOPAEDIC PAC Financial Highlights While receipts are annual, elections are reported on a two-year cycle. It is critical our members support on an annual basis. The Orthopaedic PAC closed 2018 with over $2M, and $4M for the cycle, a 15% growth from the previous election cycle. In comparison, we saw receipts at over $3.4 million for the 2015–2016 cycle, and $3.5 for the 2013–2014 cycle. ndividuals can contribute up to $5,000 to a PAC per calendar year. Corporate I contributions (soft receipts) include ORTHOPAEDIC PAC SEES 15% GROWTH checks and credit cards processed on a $4,000,000 physician’s business account including LLC, 2017–2018: PC, or Inc. Personal contributions (hard $3.992M receipts) are checks and credit cards from a $3,000,000 physician’s personal account. All contributions to the Orthopaedic PAC—whether written on 2015–2016: $2,000,000 a personal or business (corporate) check—are $3.46M welcome and important. However, corporate contributions can only be used for PAC- related operational expenses, independent $1,000,000 2013–2014: expenditures and state activities. Only those contributions written on a personal check $3.56M can be used to support federal political $0 candidates—and it is these contributions that 2014 2016 2018 help make the Orthopaedic PAC powerful. ORTHOPAEDIC PAC TOTAL RECEIPTS Election Cycle 2005–06 2007–08 2009–10 2011–12 2013–14 2015–16 2017–18 Hard Receipts $1,915,700 $2,277,000 $2,951,100 $2,738,200 $2,508,800 $2,565,600 $2,531,100 Soft Receipts $759,357 $1,016,087 $880,473 $951,049 $1,018,804 $895,000 $1,462,500 TOTAL $2,675,057 $3,293,087 $3,831,573 $3,689,249 $3,527,604 $3,460,600 $3,993,600 RECEIPTS & PARTICIPATION ANNUALIZED Hard Dollars In Participation Soft Dollars In Participation 2018 $825,000 726 2018 $1.26M 2,768 Orthopaedic PAC enjoys 2017 $1.26M 2,808 2017 $637,000 806 a 28% participation rate 2016 $1.26M 2,842 2016 $506,000 1,166 this cycle, with over 2015 $1.34M 2,782 2015 $391,000 788 5,000 physicians joining our team 2014 $1.29M 2,860 2014 $475,000 983 2013 $1.21M 2,787 2013 $543,000 1,103 2012 $1.45M 2,830 2012 $483,000 1,031 2018 ANNUAL REPORT 3 THE ORTHOPAC ADVISOR’S THANK YOU TO OUR 2018 ADVISOR’S CIRCLE MEMBERS CIRCLE IS THE AAOS’ PREMIER PAC CORPORATE DONOR PROGRAM. The Orthopaedic PAC Advisor’s Circle is a corporate* donor program designed to provide AAOS Members’ group practices and sub-specialties with a leadership role within the Political Action Committee of the American Association of Orthopaedic Surgeons (Orthopaedic PAC). The Advisor’s Circle also maximizes political and legislative opportunities for each group on a personalized basis. When the program launched two and a half years ago, we could not have imagined the success it would foster or the positive impact it would have on our legislative and regulatory advocacy efforts. Today, it is 16-groups strong and has a 100 percent member retention rate. Orthopaedic PAC Advisor’s Roundtable offers orthopaedic group practices affiliated with AAOS Members the ability to bring their particular expertise to the political process to help drive the advocacy agenda of the American Association of Orthopaedic Surgeons. The PAC Advisor’s Roundtable advises the Orthopaedic PAC Executive Committee on initiatives that directly impact orthopaedic surgery. The Orthopaedic PAC Advisor’s Roundtable In addition to these generous supporters, AAOS also extends thanks to the AOFAS for meets annually to bring forth action items to increasing their investment and support in our advocacy efforts. the PAC Executive Committee, collectively nominate one advisor to serve on the PAC Executive Committee, and weigh in on critical * Corporate donations from orthopaedic group practices and sub-specialties will be deposited into our PAC political issues. general treasury account and used to offset the PAC’s administrative and fundraising expenses. There are no limitations on the amount of the donation made by an orthopaedic group practice. ORTHOPAEDIC PAC POLITICAL DISBURSEMENTS $3,000,000 HARD $ DISBURSEMENTS $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2006 2008 2010 2012 2014 2016 2018 Election Cycle 2005–06 2007–08 2009–10 2011–12 2013–14 2015–16 2017–18 Hard Receipts $1,915,000 $2,277,000 $2,951,100 $2,738,000 $2,508,000 $2,638,000 $2,532,000 Disbursements $1,778,100 $1,703,800 $2,025,500 $2,552,000 $2,879,300 $2,576,000 $2,695,000 4 Access.