The American College of Healthcare Executives is the latest healthcare organization to blame a sagging investment economy for operating losses, as the Chicago-based organization reported a $1.8 million net loss in 2002.
The ACHE's poor performance was the result of $1.8 million in investment losses, which wiped out a break-even year on operating revenue, officials said.
"Like everybody else, we took a hit in investment income," said Thomas Dolan, ACHE's president and chief executive officer. "We look forward to 2003 being a great year with the stock market."
The organization's revenue, by contrast, increased because of growth in membership dues and publications.
The ACHE originally reported a $1 million loss in 2001 as well, but accountants later restated the results and included some of the losses in 2002, Dolan said. As a result, the ACHE restated its 2001 losses at $747,010, according to the association's annual report, released late last month.
"We study our portfolio all the time," Dolan said. "We all benefited from the go-go market of the '90s. The market is now taking it back. We just carefully monitor it."
Investments are on a rebound in 2003, he said, and the ACHE currently has about $1.4 million in investment income on its books.
The ACHE is not the only organization to take a financial hit after the stock market's second-straight bearish year.
Leaders at the American Hospital Association also pointed to the weak stock market as the reason for the organization's $429,046 net loss on revenue of $75.2 million in 2002 (Aug. 18, p. 8). The association reported a $712,424 loss on investment income in 2002 as it reported its first overall loss since 1992.
Overall revenue at the ACHE increased 5% to $16.9 million because of increases in revenue from membership dues, publications and educational programs.
The association's publishing division sold more than 48,000 books and journals for healthcare executives-a 20% increase from 2001.
Membership dues and fees increased 4% to $5.9 million in 2002, while revenue from educational programs climbed 10% to $5.9 million. Publication revenue increased 8% to $4.1 million.
In 2002, the ACHE recorded a 6% increase in its number of members and fellows-the largest number in its history. The organization also saw its lowest attrition rate since 1995 and set a record for the recruitment of new affiliates, Dolan said. It currently has 29,799 members.