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. 


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