State laws require that when charities convert to profit-making organizations, they give something back to the people.
The law provides that the state can allow a nonprofit corporation to convert to profit-making, but that any initial stock issue belongs to the state, in return for the years of exempting the company from taxes.
Eventually, Anthem and WellPoint are expected to go after nine million more members in three Blue Cross Blue Shield plans that are themselves planning to convert to profit-making from nonprofit status: Empire in New York, Horizon in New Jersey and Blue Cross and Blue Shield of North Carolina.
True ROI analysis has to convert revenue to profit, and profit to cash.
On one side are those who wish to extract as much oil, gas, and minerals from the earth as fast as possible and convert it to profit; on the other, those who wish to sustain such resources, develop and transition to less polluting alternatives, and invent more efficient processes and products that will enable equal, more equitable growth worldwide.
A few Blue Cross Blue Shield plans have converted to profit-making status over the last eight years.
The group is converting to profit-making status and selling the bulk of its newly created stock to Accel Partners, the venture capital firm that backed eBay and Facebook.
Under pressure from consumer groups, California and a number of other states financed large foundations using stock in Blue Cross and Blue Shield plans that had converted to profit-making companies.
What Chegg must prove to investors is that its growing revenue can be converted to profits.
Furthermore, the NGOs have been converted to profit-making institutions in stock flotations that led to multi-million-dollar profits for favored inside investors.
The essence of a business model is in defining the manner by which the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit.
