The corporation is a nonprofit organization organized and operated exclusive1y for charitab1e and educational purposes within the meaning of Section 50l(c)(3) of the Internal Revenue Code of 1954, as amended, or the corresponding provision of any subsequent Federal tax law.
The corporation is to receive and administer gifts of property for charitable, benevolent civic, health, scientific and educational purposes, primarily for the purpose of enhancing the quality of medical care in the State of Delaware, in a manner which shall:
- Afford to persons an opportunity to make gifts with a greater beneficial result than possible through individual action;
- Afford to corporations an opportunity equal to that of individuals to create memorials or make gifts as the circumstances of their economic situation warrant, from time to time;
- Safeguard and provide for the permanent security of' such gifts.
In 1992, the Medical Society of Delaware formed the Delaware Foundation for Medical Services, Ltd. to serve as a vehicle for funding a new program to improve access to medical care for the Medicaid population in Delaware. In 1993, this program, entitled the Voluntary Initiative Program(VIP) was formed in cooperation with the Delaware Department of Health and Social Services and the Delaware Healthcare Commission. The objective of the program was to refer Medicaid patients without a regular source of medical care to primary care physician. The intention of the program was to establish a medical home for Medicaid recipients who did not already have one. The goal was to improve the quality of care for these patients and to reduce the need for use of emergency departments and hospitalizations. Participation in the VIP was voluntary both for patients and physicians. Initial funding for the project came from a $125,000 grant from the Delaware Health Care Commission, on October 1, 1992.
During the first quarter of 1993, the Medical Society completed the planning and development phase of the program, which included making arrangements for office space, office furniture and equipment, hiring of personnel and the development and installation of computer systems and telephone lines for implementation of the program. The VIP operated from April of 1993 through 1995, during which time was successful in referring approximately 4,000 Medicaid patients to Delaware physicians. With the advent of managed care for Medicaid in 1996, all Medicaid beneficiaries were required to select primary care physicians, thus obviating the need for the VIP.
During the operational phase of the VIP, the Foundation was involved in fund raising to sustain VIP operations and to enable planning of future programs to benefit the medically indigent in our state. The Foundation was successful in raising a total of $204,000 for this purpose.
When it became apparent that the VIP would no longer be utilized for the Medicaid population, the Foundation Board redirected its attention to exploring the feasibility of transitioning VIP services to serving the uninsured population in our state. In this regard, the Foundation submitted a grant proposal to the Robert Wood Johnson Foundation for funding under its Communities in Change: Financing and Delivering Health Care to the Uninsured initiative.
In addition, the Foundation has directed its activities to solicitation of requests for funding specific projects and proposals concerning access to medical care and studying the effectiveness of primary care for Delaware for Delaware’s indigent population.
The Delaware Foundation for Medical Services was chosen as the repository for the proceeds from the Anna P. Dillon Trust. This philanthropic trust was established by the estate of Anna P. Dillon and administered by the PNC Bank. A stipulation of the Trust included the provision that the distribution of any funds from the Trust must be in consultation with the Medical Society of Delaware. The Delaware Chancery Court determined that the Delaware Foundation for Medical Services would be the appropriate recipient of the proceeds for the Anna P. Dillon Trust.