The American Medical Association posted a $28.1 million operating profit in 2005, its sixth consecutive year in the black, but also suffered its sixth straight year of declining membership despite a national advertising campaign launched last spring to counter the trend. The AMA earned operating profit of about $40 million in 2004, and the decline in 2005 reflects the cost of the national advertising campaign, $22.1 million in 2005, roughly triple what the AMA spent on marketing and promotion in 2004. The three-year campaign is budgeted for $60 million total. Total revenue was up 3.8% to $280 million in 2005, and dues revenue rose for the first time in a decade to $48.5 million, an increase of slightly less than 1%. The AMA said it added about 3,300 new dues-paying members, which it said was a positive result of the advertising campaign and member outreach. Still, total members fell about 500 to about 244,000, due to the loss of older physicians who died or chose not to renew, the AMA said. General and administrative expenses increased about $19 million to $194 million. -- by Michael Romano
AMA in the black but membership still flagging
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