Patronage

As a cooperative, we believe in emphasizing the benefits of being a member-owner by paying members back with a patronage check.

Here’s how it works:

  • When the fiscal year ends on May 31, The Alliance tallies its books and determines whether there is an operating surplus. The operating surplus is the amount that remains after expenses and obligations are paid.
  • The Alliance Board of Directors splits the operating surplus into two categories of “patronage.” The first category is “allocated equity” that can be used as cash reserves and operating capital, but is held in the names of specific members. The board may periodically decide to pay out this allocated equity to members.
  • The second category is the check payment made directly to members.
  • Your share of the payout is based on your patronage of The Alliance, or how much you used The Alliance network to purchase health care. In other words, we look at your contribution to the total revenue received by The Alliance. That percentage figure becomes your share of the 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 250 members in a growing geographic area, it’s not possible to reach everyone in person while the checks are still fresh. That’s too bad, because it’s always fun to deliver a check, even when members are surprised.

Want more information on how patronage works? Watch this video.

For more information on patronage, read our blog, “This Check Proves Cooperative Membership Pays Off,” by Mike Roche, Director of Business Development.

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