The American Medical Association nearly doubled its operating profit in 2004, earning a record $39.8 million compared with $20.1 million in 2003, according to its annual report, released today.
Last year marked the fourth straight year in the black for the Chicago-based doctors' association, which struggled financially through the late 1990s and saw a loss of about $15 million in 1999.
Top AMA officials also unveiled a new, three-year branding and marketing campaign complete with an updated purple logo featuring a serpent that appears to be in motion, coiling itself around the Staff of Asclepius, the ancient Greek symbol of medicine. Michael Maves, M.D., the AMA's executive vice president and chief executive officer, said the organization will redirect much of its annual $20 million marketing budget toward a campaign that includes national print ads as well as television and radio commercials. His goal is to increase membership by 1% in 2005 and boost the trade group's influence across the country, Maves said at a press conference at the AMA's headquarters.
The AMA's gain in operating profit last year was attributed to increased revenue in several divisions, including royalties and credentialing products, which rose about $6.2 million in 2004, a 13.3% jump from 2003. Subscription revenue increased by almost $1 million, from $16.7 million to $17.5 million, while other publishing revenue rose by almost $4 million, or about 30%. Meantime, total general and administrative expenses were down $10 million, or almost 6%, as the AMA trimmed compensation and benefits as well as costs for professional services and consulting. Total revenue climbed to $269.9 million, up from $256.4 in 2003.
But not all the 2004 numbers were positive. Dues revenue, which now makes up about 18% of total revenue, dropped to $48.1 million from $49 million in 2003, according to the report, as membership dipped for the fourth straight year, falling about 5,500 to 244,530 at year-end.