If only its members could have profits like this.
The Catholic Health Association posted an eye-popping 18.8% profit last year, according to the CHA's annual filing with the Internal Revenue Service.
The St. Louis-based trade association posted net income of $3.3 million on total revenue of $17.7 million, according to the organization's Form 990.
The publicly available form was filed May 15 and covers the period from July 1, 1998, to June 30, 1999.
"We were very pleased with the overall performance," said the Rev. Michael Place, the CHA's president and chief executive officer.
Boosting the CHA's bottom line was an 8.3% increase in dues revenue compared with the previous fiscal year and more than $3.5 million in investment income. Place said the jump in dues revenue is attributable to an increase in members and more timely payment of dues.
The CHA has more than 2,000 members, including religious sponsors, systems, facilities, health plans and related organizations. It has about 80 employees in offices in St. Louis and Washington.
The CHA's financial performance swamps that of its much larger counterpart, the American Hospital Association.
According to its most recent IRS filing for calendar 1998, the Chicago-based AHA had a 5.3% profit margin after posting net income of $4.1 million on total revenue of $77.8 million, according to an amended Form 990 the association filed last year. The AHA has some 4,800 institutional members.
The CHA has improved its financial health each year since Place took the helm in February 1998. He replaced John Curley Jr., who retired after 18 years with the CHA.
For the fiscal year ended June 30, 1998, the association posted a 17.8% profit margin, or almost $3 million in earnings, on total revenue of $16.8 million.
For the year ended June 30, 1997--the last full year under Curley's management--the CHA posted an 8% profit, with net income of $1.2 million on total revenue of $15.2 million.
Also disclosed in the CHA's IRS filing last week was a $429,623 severance package for William Cox, the group's former executive vice president, who resigned in September 1998.
Cox, who is now president and CEO of Sacramento, Calif.-based Alliance of Catholic Health Care, declined to comment on his severance package.
In addition to the severance, Cox also received $386,470 in compensation, including $52,647 in unused vacation.
The CHA paid Place $417,906 in compensation and contributed $21,445 to employee benefit plans and deferred compensation for him.