History of Foundation for a Healthy Kentucky

In November of 1996, the Kentucky Department of Insurance Commissioner, George Nichols and Attorney General Albert B. Chandler began an investigation of the conversion of charitable assets of Blue Cross & Blue Shield to Anthem, Inc. as a result of their 1993 merger.  Kentucky had not enacted any statutes to regulate non-profit conversions and protect charitable assets so there was no alleged wrong-doing on the part of Anthem, Inc. but there was common law power of the court to impose provisions to protect charitable trusts. In October 1997, Attorney General Chandler filed a lawsuit against Anthem, Inc. establishing that it had converted assets dedicated to a charitable purpose to its own for-profit use.

Attorney General Chandler, representing the Commonwealth of Kentucky and the legal counsel for Anthem, Inc., in November of 1999 reached an agreement after several days of court ordered mediation.  Anthem agreed to place $45 million into an independent charitable foundation that would address the unmet health needs of Kentuckians.

One month after the agreement was reached, a restricted account was established by the court to hold the funds from Anthem Inc. until such time that a new, independent charitable foundation could be launched.  Throughout the year 2000, a small volunteer workgroup studied the issues related to creating the new foundation and presented their recommendations to the court.  In the Fall of 2000, a 34-member Community Advisory Committee was named with members reflecting the geographic, gender, racial and ethnic diversity of Kentucky. The Community Advisory Committee was charged with developing Articles of Incorporation and Bylaws and proposing members of an initial Board of Directors.  The name selected for the new organization was the Foundation for a Healthy Kentucky and it was approved by the court as a worthy entity for receipt of the settlement funds on May 3, 2001.  The Board of Directors held its inaugural meeting a few days later on May 9, 2001.

Organizational issues dominated the Board's agenda during 2001.  Officers were elected and committees were formed including the Executive, Advocacy, Policy Development and Investment Committees.  An Executive Director was recruited and two grants were finalized, one with the University of Kentucky and one with the University of Louisville.  The grants were both given for the purpose of creating endowed chairs in public health to enhance Kentucky's research capacity related to health policy.

As the Foundation for a Healthy Kentucky began its first full year of operations in 2002, the Board along with the Community Advisory Committee conducted a series of listening workshops around the state that provided the basis for the Board's decision to adopt several focus areas which will provide the frame work for future initiatives.

ByLaws (PDF)
Articles of Incorporation (PDF)
Articles of Incorporation Amendment (PDF)