Like many of its hospital members, the American Hospital Association, including its subsidiary operations, recorded a significant increase in profits last year, to more than $8.4 million on total revenues of $133.8 million.
That represents a nearly 31% increase in net earnings on a total revenue increase of just under 3%.
The association disclosed its financial performance at last week's annual AHA convention in Dallas. The financial information is released as part of the association's annual treasurer's report to the AHA's House of Delegates.
Salary information regarding the AHA's officers and directors isn't included in the report, but it will be available shortly when the association files its annual tax return with the Internal Revenue Service. Revenue and expense data included in the AHA's tax return will be slightly different from the data in the treasurer's report because of different accounting requirements.
The AHA's financial success mirrors that of its hospital membership, which enjoyed a 19% increase in aggregate profits in 1992, to $11.9 billion (Aug. 8, p. 115). Aggregate hospital industry profit figures for 1993 will be available from the AHA later this year.
Driving the association's financial re-sults last year was a $7.6 million dividend from its subsidiary organizations. The AHA has two subsidiaries: American Hospital Association Services, which oversees the association's publishing and insurance operations, and the American Organization of Nurse Executives, a specialty membership society.
Of the subsidiary ventures, Health Providers Insurance Co. was the most profitable. HPIC earned $6.9 million on total revenues of $25.5 million.
The AHA is selling HPIC as the association continues to divest major fee-for-service activities. Under the direction of AHA President Richard Davidson, the association is converting into a primarily dues-supported organization.
Without the dividend from the subsidiaries and their $42.6 million in revenues, the AHA earned $777,000 on total revenues of $91.2 million last year, compared with a $220,000 profit on total revenues of $88.5 million in 1992.
The association collected about $60.9 million in membership dues last year from hospitals and individuals who belong to the AHA's 16 personal membership groups. That's up from about $53.5 million in membership dues collected in 1992.
At the annual convention last week, the AHA's House of Delegates passed a bylaws change allowing the association to revamp its long-standing dues structure, which is based on increases in hospital expenses (See related story, p. 4).