The American College of Healthcare Executives suffered a $1 million loss in 2001 as investment income plummeted because of the weak stock market.
The loss comes at a time when the ACHE faces new competition from a recently formed leadership organization that could threaten its membership base and further erode its revenue.
The loss followed a profit of $1.9 million in 2000, according to the ACHE's annual report, released last week. Thomas Dolan, ACHE's president and chief executive officer, attributed the loss to a $1.02 million deficit in net investment income. "Our investment advisers say the market will rebound," Dolan said. "That is the whole purpose of having $14 million in reserves, to serve our members in the field in a financially difficult time."
The organization's revenue increased 4% to $16.1 million, fueled by increases in membership dues, contributions and grants, and revenue from publications.
The ACHE reported a 10% increase in membership dues and fees to $4.9 million in 2001, but the National Center for Healthcare Leadership, a newcomer organization, could affect membership numbers in the future. The ACHE's board of governors recently approved a position paper saying the new organization "will needlessly duplicate" the work of six main healthcare professional societies (Aug. 19, p. 10).
Dolan shrugged off the NCHL's efforts, saying his organization has the most members ever, about 28,000 practitioners, students and retirees. "Competition is nothing new to us," he said.