The American Medical Association lost $12.7 million in the year ended Dec. 31, 1994, compared with a $23.8 million loss in 1993. At the same time, the association's equity declined $13.5 million, to $91.2 million. At the beginning of 1993, the AMA had $127.5 million in equity.
The numbers are contained in the auditor's report prepared for the annual meeting of the AMA's House of Delegates this week in Chicago.
Although membership dues increased $3.0 million, to $71.1 million, two main income categories showed declines for the year:
Advertising, as predicted, continued to decrease in AMA publications as pharmaceutical companies chopped their ad budgets. The ad sales declined to $36.6 million in 1994 from $40.8 million in 1993.
Interest and investment income dropped to $2.0 million from $6.5 million.
Overall operating revenues held steady, however, at $186.6 million. Operating expenses rose slightly to $187.8 million. Two nonoperating items ran up substantial losses: the AMA's healthcare reform campaign ($3.3 million) and its internal restructuring ($4.2 million).
But the earnings trend looks worse if accounting changes aren't included. Of the $23.8 million lost in 1993, $14.7 million was attributable to changes in accounting standards for retirement obligations, a line entry that pushed many corporations into the red that year. Without the accounting change, the 1993 loss would have been $9.1 million. Thus the 1994 loss of $12.7 million represents a deterioration in the AMA's earnings.
The board of trustees is recommending that annual dues not rise in 1996 "to further (the) AMA's objective of maximizing membership market share." That would leave dues at $420 a year, unchanged since 1994. One committee report recommends that a discounted dues program for group practices of more than 100 doctors be extended to groups of 50 or more.
Executive Vice President James S. Todd, the AMA's top executive, earned $467,451 in base salary in 1994, up from $452,304 in 1993. His total compensation, however, declined, mainly because he did not get a bonus in 1994. Including benefits, his 1994 compensation totaled $527,927.
The AMA compensates officers and trustees for time they spend on association business.
In 1994 the top six earners were:
Name Position Days Compensation Per-day rate
Lonnie R. Bristow President-elect 168 $278,307 $1,657
John L. Clowe Previous president 54 276,635 5,123
Joseph T. Painter Immediate past president 148 274,571 1,855
Robert E. McAfee President 252 228,860 908
P. John Seward Chairman 137 173,877 1,269
Nancy W. Dickey Vice chairwoman 153 133,112 870
Source: American Medical Association