John A. Benson Jr., MD and Harry R Kimball, MD were the first two Presidents of the ABIM appointed after the bylaws were changed to pay officers salaries. Dr. Benson was the first President of the ABIM from 1975 through 1991 and ran the organization from his home in Portland, OR, leaving his academic and clinical practice for the administrative world of the ABIM save for one long-time physician-patient he kept while serving in that capacity.* Dr. Kimball, his all-too-willing successor from 1991 through 2003, understood the number of doctors being trained was finite and paying executives would be difficult without a new business model. It was Dr. Kimball who conceived of "maintaining" one's board certification through ABIM's Continuing Professional Development (CPD) program to keep the money flowing. But the initially voluntary program flopped as doctors saw the program for what it was: an unnecessary distraction from their busy practices. So CPD would have to become mandatory. His like-minded colleagues at the American College of Physicians (who would also financially benefit) could see to that, and soon money flowed like honey. So much, in fact, that something had to be done with all that money earned by a so-called "non-profit."
It was under Dr. Kimball's direction as ABIM's Chairman of the board from 1989-1990, the ABIM Foundation was secretly created in 1989. Multiple money transfers from the ABIM to the Foundation were made to facilitate lucrative investments with (the now-defunct) 1838 Investment Advisors. For a while, it was a win-win for both corporations. So many trades were made that ABIM paid nearly a quarter of a million dollars annually for their services.
With that money flowing to the ABIM, nearly $90,000 of artwork was purchased for their Walnut Street offices in Philadelphia in 1997 and 1998. We know this because the ABIM offices were later renovated in fiscal year 2003 as the computerized testing age came to Philadelphia. At that time, the value of that art work was disclosed on ABIM's IRS tax forms (see here, here, and here).
In total, it appears $89,874 dollars worth of some kind of art adorns ABIM office walls, thanks to ABIM diplomates. No wonder they "surprised" Dr. Kimball with a black tie event and had the first "Kimball Lecture" in honor of him in August, 2004!
But then 2005 came.
The gravy train ended when 1838 Investment Advisors' fund lost 74% if its value and mysteriously disappeared:
"The silence has been deafening," said one money management executive in the region, who declined to be named. It's as if they "fell off the face of the earth," said a pension consultant, who asked to remain unidentified. One private equity veteran, who declined to be named, said it's unusual for a firm with such a long history to simply disappear. The firm traced its lineage back to Drexel and Co., a banking and investment management firm founded by Francis Drexel in Philadelphia in 1838.Principles from 1838 Investment Advisors were holdovers from the Drexel Burham Lambert that came under investigation for illegal activities in the junk bond market for stock manipulation. Since that gravy train collapsed, another hopeful investment was made in real estate: a condominum puchase in December 2007.
The ABIM Foundation was never about "medical professionalism" or "Choosing Wisely®." It was a "get-rich-quick" scheme using diplomates' testing fees for the organization's own corporate benefit.
That is, until it wasn't.
* Interview with Dr John A Benson, Jr, MD, conducted April 27, 1999, page 18.