X-Message-Number: 25146 From: Date: Wed, 24 Nov 2004 01:04:58 EST Subject: Reply to Robert Ettinger From Michael Riskin Robert Ettinger, in an earlier post, referenced some financial changes taking place at Alcor. However, there was related contextual information that was omitted in his post. Virtually anyone involved with cryonics understands and agrees with the importance of having a capable and equipped standby team available at the terminally ill patient's location, prior to the actual time of pronouncement, if at all possible. In short, a trained team with proper equipment and supplies can substantially reduce the damaging effects of prolonged warm ischemia. This in turn makes the operating procedures in which the patient is prepared for cool-down and long term cold maintenance more effective. At Alcor this is particularly important as we are able to offer every member who wants it, neuro-vitrification ( with whole body cryo-preservation, also if desired). Also, the possibility of a successful vitrification is partly dependent on the effectiveness of the standby procedure. "More effective" in this context means improving the chances for eventual reanimation. (Alcor is also expecting to offer whole body vitrification also as a matter of course sometime next year). Back to the omission on Mr Ettinger's part: For $10 a month, * and not one penny extra*, (the increase Mr Ettinger mentions out of context), starting Jan 1, 2005, every terminally ill Alcor member will get, a fully equipped team, 24/7, in sufficient proximity to his / her bedside, ready to act at the moment of legal pronouncement. It is called CMS or Comprehensive Member Standby. Prior to the initiation of CMS, each member was responsible for individually covering those team expenses, expenses which in the case of an extended standby period ( lasting a week or more) could cost $35,000 and more....a financial burden for many members and their families during an already most stressful time. The response from our membership and applicant base has been overwhelmingly positive in favor of this offering. It represents yet another way in which Alcor offers the highest possible degree of service from bedside to long term maintenance. No, it is not true reversible suspended animation. But it is the closest thing to it that is available. While preparing to write this reply, I also recalled a significant difference between the way Alcor handles its' finances from that of CI. Many cryonics members prepay their suspension funding in advance of need. These funds are 100% refundable at any time the member so requests at any time prior to the actual delivery of cryo-preservation services. Alcor records these funds as offset by an equal liability account on its financial statements, un-useable for any reason other than refunding or delivery of service to the pre funded member since the money is not actually ours to use, but rather funds similar to an escrow account, for that member. That accounting procedure Alcor uses is part of a greater set of standards which is called " Generally Accepted Accounting Practices" by the Certified Public Accounting Profession. CI on the other hand records these prepaid funds as an asset and current income, available at any time for use in paying current expenses of the organization. in general. Then should the member request a refund or need service, the money must come from general revenues as available. The total sums involved are material and would significantly negatively affect the bottom line of the CI financial statements if recorded correctly as a liability ( unearned income, to be technically precise) instead of an asset and current income. The overall conservative manner in which Alcor maintains its' books of account ( including its' segregated patient care trust fund which is useable only for patients in storage related expenses ) is another reason so many members have decided that Alcor represents the safest place to make their investment into their future. The income generated from the principal funds in the trust are sufficient to cover all patient related expenses, and, over time, with careful investment, it has demonstrated actual total fund growth, such funds being available for that time in the future when member reanimation and its unknown associated costs occur. Alcor, as an organization could theoretically become financially insolvent due to catastrophic circumstances but the long term patients will always have their maintenance expenses covered. We do not depend on future revenues or the good will of coming generations to safeguard our long term patients who are as individuals and a group, are defenseless to protect themselves. Alcor is sometime criticised for its conservative pricing structure (which is far higher than CI's for example). But, we believe that 1) you can never have too much money set aside for the members' unknown future expenses, and 2) that the very best available in current technology is what is required to allow the best chance for that members potential future to become a reality. Content-Type: text/html; charset="US-ASCII" [ AUTOMATICALLY SKIPPING HTML ENCODING! ] Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=25146