The Alliance Cooperative Shareholder Benefit
As a not-for-profit cooperative, The Alliance gives a share of its net proceeds back to our members in the form of patronage checks – or what we call our cooperative shareholder benefit. The more money our employers save, the more net profit The Alliance makes, which is the cooperative shareholder benefit given back to our employers. The percentage of cooperative shareholder benefit an employer earns is based on how much they used The Alliance network to purchase health care.
How our Cooperative Shareholder Benefit works:
- When The Alliance’s fiscal year ends on May 31, we tally our books and determine our operating surplus – or the amount of net profit that remains after expenses and obligations are paid – and that total is used to distribute our Cooperative Shareholder Benefit.
- The Alliance Board of Directors splits the Cooperative Shareholder Benefit into two categories: allocated equity and patronage checks.
- Allocated equity can be used as cash reserves and operating capital, but is held in the names of specific employers. The Board may periodically decide to pay out this allocated equity to members.
- The second category is a patronage check payment made directly to each employer.
- An employer’s earned percentage of Cooperative Shareholder Benefit is based upon how much they used The Alliance network to purchase health care in that year. In other words, an employer’s contribution to the total revenue received by The Alliance determines their share of patronage payout.
Sharing the Rewards of Self-Funding
We deliver patronage checks in person when we can reach members in a timely way. With more than 275 members in a growing geographic area, it’s not possible to reach everyone in person, so in some cases patronage checks are mailed.
Want more information on how patronage works? Watch this video.
Making the Most of Employer Membership
As part of The Alliance, our members play an important role in keeping costs down, because the more members we serve, the better we are able to negotiate higher-quality care at lower prices. Additionally, sharing ideas and concerns with The Alliance and other like-minded employers and brokers allows us to innovate the way health care is bought and sold. By joining The Alliance, you’ll also have the opportunity to serve on our Board of Directors (or vote to elect them). You can join in on these activities by joining us at The Alliance Events.