CDA's Corporate Alphabet Soup

For a period after unification of the northern and southern California dental associations in 1974, the new California Dental Association was relatively simple in structure.

In 1980, however, a time of phenomenal growth began with the start-up of The Dentists Insurance Company (TDIC) as California dentistry first recognized the value of for-profit subsidiaries as a benefit to the membership. With TDIC, CDA was ensuring the availability of an insurance product at reasonable cost and with dentist oversight. Prior to that time, professional liability coverage for dentists had been available only from commercial companies and was under their complete control. Besides dentist control, the other bonus to members from TDIC is the revenue that is ultimately returned to CDA and the dividends to members who are policyholders.

The alphabet soup continued to add ingredients as leadership saw merit in the potential revenue from programs that would enhance operations of the association and reduce the percentage of out-of-pocket membership dues required to fund the growing list of CDA membership services. There was a restructure earlier this decade that added a holding company (CDAHCI) for oversight. Over time, this growth contributed to what has become a baffling slate of ingredients in the CDA alphabet soup to the average CDA member. CDAHCI (California Dental Association Holding Company, Inc.), TDC (The Dentists Company), TDCIS (The Dentists Company Insurance Services), TDCMS (The Dentists Company Management Services), and TDIC currently make up a confusing landscape for CDA members who have had occasion to make contact with some of the above entities regarding programs and services.

Some of that confusion should soon be resolved once the necessary business and legal actions are completed on a couple of important changes that were approved by the CDA Board of Trustees at its summer meeting. Final approval would come from the 1999 House of Delegates in the fall. If simplification and clarification is a purpose, the House should not balk on these proposals.

One action will merge TDC with TDCIS. That will drop one ingredient from the mix. A major part of the confusion comes from these two entities and TDIC. The second action, once the two have been merged, will change the name of TDCIS to 1201 Financial & Insurance Services. With the former TDC entities under one umbrella and with a new name that meets the requirements of the California Department of Insurance, there should be no further confusion with TDIC. Whether or not the new entity becomes an alphanumeric soup (1201 FIS), we will have to wait to see.

This brings us to a most important part of the structure, CDAHCI, otherwise known as the Holding Company. The Holding Company Board, chaired by CDA Executive Director Timothy Comstock, played a role in this simplification process by requesting that the subsidiary boards consider name changes that would eliminate the confusion that existed among members, volunteer leaders, vendors, and even staff.

The Holding Company has also been reviewing its statement of purpose and will take an active role in its responsibility to oversee the many business activities of CDA. Coupled with the organizational review currently being conducted for CDA, members can be assured that every effort is being made to provide oversight over business activities and eventually to incorporate efficiencies in operations that will strengthen the organization and provide them, the members, with the highest level of benefits. Further, it is our belief that efforts to simplify the structure so that members will better understand what their organization is doing on their behalf will also strengthen their support of their association and its progress.