National Nurses United

Both are organized as tax-exempt 501(c)(6) groups, which are typically used for business or trade associations. According to the most recent available tax returns, CHA's annual revenues have grown from $8.1 million in 2001 to nearly $10 million in 2003. Its expenses have also grown, from nearly $8 million in 2001 to $9.9 million in 2003. Close to 99 percent of its revenues come from hospital membership dues. Tax returns for 2004 were not yet available. CAHHS's annual revenues have likewise grown from $12.7 million in 2001 to nearly $15 million in 2003. Its expenses went from $11.8 million in 2001 to $13.8 in 2003. Both organizations help pay the annual salary and benefits of C. Duane Dauner, who serves as president of CHA and CAHHS. In 2003, Dauner's compensation package totaled $908,498, with about 75 percent coming from CHA and 25 percent from CAHHS. In 2002, Dauner's package totaled $814,091, and in 2001, it reached $1.7 million, though a significant part of that year was deferred compensation. Dauner, formerly president and CEO of the Missouri Hospital Association and vice president of the Kansas Hospital Association, has headed CHA since 1996 and CAHHS since 1985. Dauner consistently ranks among the country's best-paid association executives. Modern Healthcare magazine in March pegged Dauner as the 10th best compensated association exec- utive in its annual survey based on 2003 numbers, but failed to its more than 500 member hospitals to raise money and spend it influencing government and elected officials. "Nurses need to understand who CHA is, how they have set up this structure that allows them to pool resources and funnel money to not only lobby against nurses but to support the gov- ernor when he's carrying out their agenda and the agenda of the big hospital systems," said Donna Gerber, CNA's director of gov- ernment relations. "They spend the vast majority of their time fighting what's near and dear to nurses' hearts: patient care." Most people who've encountered CHA know about the asso- ciation itself, but are unaware that the organization also heads an affiliated group called the California Association of Hospitals and Health Systems (CAHHS). CHA used to be known by the latter name, but adopted "California Healthcare Association" in the mid- 90s. Late last year, it again changed its name to "California Hospital Association." CHA is also integrated with three corporate "region- al" members: the Hospital Council of Northern and Central California, the Hospital Association of Southern California, and the Healthcare Association of San Diego and Imperial Counties. Members of those groups are automatically included in CHA. While CHA is the group the public knows, CAHHS runs var- ious subsidiary business services that CHA provides its members, such as an unemployment claims service and a foundation that awards grants to executives studying healthcare systems in other states or countries. AVY C A L I F O R N I A N U R S E J U N E 2 0 0 5 11 The California Hospital Association is collecting millions of dollars from its members and leveraging that money to lobby against the public interest. Here's a closer look at its game plan. By Lucia Hwang

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