X-Message-Number: 29188
From: 
Date: Mon, 26 Feb 2007 00:20:59 EST
Subject: Re 29183

In post number 29183, Mr. Platt has offered some information on CI and  

Alcor. One of his comments is that quality of care is not the only issue and he
discusses comparative financial matters. I agree that financial matters are  
quite relevant. Financially conservative procedures and accounting per GAAP  

(generally accepted accounting principles) guidelines that CPA's ethically must
follow, and funds specifically set aside for the future, may be relevant  to 
some prospective members. 
 
When comparing financial differences between CI and and Alcor  it may be 
important to some people that Alcor follows GAAPs. Alcor  keeps all of its 

pre-funded membership moneys in a separate liability (as  a debt due to the 
member) 
account, (as GAAP's mandates). These funds  are segregated from operating 

funds, to be only used for future  services due a member or for a member refund 
if 
so requested. CI takes  pre-funding moneys into current assets to use for 
overall operating expenses in  the hope that future revenues will cover such 
pre-funding needs. 
 
Alcor has a segregated trust pool that protects the patient's (those  members 
in long term biostasis) funding. These funds, may only be used for  the 
welfare-expenses of the patients, now and in the future, and is sufficient  to 

maintain the patients indefinitely even if Alcor never receives another  nickel 
of 
revenues. CI does not keep a segregated pool of the patients own  money, 

available only to patients welfare, but rather has these funds in their  general

operating pool available for any general administrative expenses. Again,  Alcor
follows GAAP's whereas CI does not. It is CI's hope that operating assets  
and future revenue streams will be sufficient to cover patient needs. 
 
Additionally Alcor's financial statements are compiled by an independent  
auditing CPA firm, whereas CI's financial statements are not.
 
So, while it is absolutely correct that the cost of CI services are  
significantly less expensive by any measure, 
that in addition to a quality of care decision, Alcor fully funded members  
also believe that the additional assurances of a more financially  secure 
future are well worth the additional funding expense. 
 
Michael Riskin, CPA, speaking solely for himself and not in his capacity as  
a member of the Alcor Board of Directors.
 
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