REGIONAL — The governing bodies of the ValleyCare Charitable Foundation (VCCF) and the Stanford Health Care – ValleyCare (SHC - VC) each voted unanimously to move forward with a conditional merger, pending VCCF’s corporate member approval.
John Sensiba, SHC - VC board chair, said that the discussion around the merger fell in line with the sunsetting in May 2020 of VCCF memberships, along with the fulfillment of VCCF affiliation obligations with the California State Attorney General in December 2020.
When ValleyCare affiliated with Stanford Health Care in 2015, the Attorney General put various conditions in place on the approval of the affiliation. In addition, Stanford at the time had to become the sole member of ValleyCare’s organization, which was made up of corporate/founding members. With the affiliation, ValleyCare’s members then had the option to become members of VCCF. But that membership was set to expire after five years, technically last May 2020.
“That’s what we all voted on when we voted for the affiliation,” Sensiba said. “But people kind of forgot about it.”
He noted that the VCCF board decided to extend the memberships to June of this year, because they wanted complete transparency and to give members the chance to vote on the merger.
VCCF distributed information to its members and will hire an independent firm to manage the voting process. The deadline to return ballots is set for mid-June.
Rick Shumway, SHC - VC president and CEO, said the merger will add resources to the community.
“The Medical Center Development team at Stanford is exceptionally robust,” Shumway said. “We’re going to bring additional support and resources into our community around philanthropic and development activities for the hospital. So, in support of all the clinical programs and research and education that we are building and developing here, we will have access to the Stanford Medical Center Development team’s resources and capabilities in a different way than we have in the past. That’s not to say that ValleyCare Charitable Foundation hasn’t done an exceptional job at continuing to support the hospital, but it will be an added benefit to have those resources that don’t exist here now.”
With the merger, VCCF’s fundraising mission will transition to the Stanford University Office of Medical Center Development (MCD). A specific team will be dedicated to SHC - VC fundraising efforts. The staff at MCD includes a team of fundraising professionals dedicated to managing donor events, communications and stewardship, research, operations, and other functions critical to supporting a fundraising program.
SHC - VC will receive the funds currently held by VCCF, and VCCF will no longer exist as a separate entity. Most importantly, all funds, endowed or expendable, will be transferred and stewarded according to the donor’s original intent. Future funds will be managed in compliance with Stanford University’s current funds accounting policies.
Sensiba continued to note that when the two boards voted to merge, the approval came with stipulations “that any money that came from the VCCF to the hospital as a result of the transaction would be exclusively used for efforts in the Tri-Valley region.”
SHC - VC will also create a new advisory group called the Community Advisory and Relations Board (CARB), consisting of 10 to 20 members who will be identified from within the community. The primary role of this new SHC - VC advisory board will be to provide input in meeting the community’s needs and expectations. CARB members will participate when feasible in the planning, execution and evaluation of SHC - VC’s community strategy.
Bob and Joyce Shapiro, who have managed VCCF, will take on a new role following the merger. Bob said that he and his wife are working with Shumway at present to help shape CARB. However, the advisory group’s members have yet to be determined.
VCCF will host three Zoom/online/virtual town halls with VCCF and SHC - VC leadership to answer questions. The one-hour virtual town halls on Tuesday, May 4, at 3:00 pm; Friday, May 7, at 8:30 am; or Tuesday, May 11, at 4:30 pm. Denise Bouillerce, Senior Director, Government & Community Relations can be reached at 925-373-4020 or firstname.lastname@example.org.
For more information, visit givevalleycare.org/merger.