Thanks to an increase in dues revenue and a jump in revenue from long-term investments, the Catholic Health Association maintained a double-digit profit margin in its last fiscal year.
The CHA, which represents more than 2,000 Roman Catholic healthcare providers, had a nearly $3 million profit on total revenue of $18.9 million in the fiscal year ended June 30, according to its latest annual filing with the Internal Revenue Service.
In the previous fiscal year, the CHA turned a $3.3 million profit on total revenue of $17.7 million.
The results represent a 15.8% and 18.8% profit margin, respectively, for 1999 and 1998.
"The association continues to be in sound financial health," the Rev. Michael Place, the CHA's president and chief executive officer, said in a written statement that accompanied the CHA's Form 990, posted on the group's Web site at www.chausa.org.
The CHA filed its Form 990 with the IRS on Nov. 15. MODERN HEALTHCARE reviewed a copy of the form, which is available for public inspection, last week.
Helping to fuel the CHA's continued profitability was a 4.3% increase in revenue from membership dues to more than $13 million last year. The CHA's dues formula is based on members' operating expenses. Those expenses rose last year, which resulted in the increased dues payments.
Also boosting the CHA's bottom line was $4.4 million in revenue from long-term investments compared with $3.6 million in the fiscal year ended June 30, 1999.
In all, the CHA's total revenue rose 6.5% to $18.9 million in the last fiscal year, while total expenses climbed 10.5% to $15.9 million.
The association's expenses included $1.6 million in compensation paid to officers, trustees and key employees, an 11% increase, and $4.3 million in salaries and wages paid to other employees, a 1.2% rise.
The CHA employs 85 people--71 at its St. Louis headquarters and 14 in its Washington office.
Place, who has headed the CHA since 1998, got $430,771 in total compensation. That includes $395,661 in base pay; $22,835 in benefit plan and deferred compensation payments; and $12,275 in expenses and other allowances.
In the previous fiscal year, Place received $455,793 in total compensation, which included a one-time bonus.
The association's Form 990 revealed that the CHA also paid $338,491 in severance pay to William Cox, the group's former executive vice president, who resigned in September 1998. A CHA official said that amount was part of deferred compensation and future severance payments for Cox of $429,623 reported on the CHA's Form 990 for the fiscal year ended June 30, 1999.
The CHA paid total compensation of $379,179 to Jack Bresch, who worked at the organization for almost 17 years and resigned in June as the director of legislative affairs. That figure included $161,865 in compensation; $215,577 in employee benefit and deferred compensation payments, which included a service recognition payment; and $1,737 in expenses and other allowances.