The Joint Commission posted slightly lower profits in 2006 on revenue and expenses that increased marginally, according to its annual tax form filed last week.
The Form 990 showed the Oakbrook Terrace, Ill.-based accrediting organization had next income of $5.4 milliondown 7.7% from 2005after taking in $108 million, up 1.4%, and spending nearly $103 million, down 2%. Program services fees generated almost $98 million in revenue, down 0.5%.
Outgoing President Dennis OLeary received a total compensation of $852,458, a figure more in line with his 2004 total of $875,231 after the commission reported deferred payments of nearly $1.2 million in its 2005 form. He will retire at year-end. Mark Chassin, former commissioner of the New York State Health Department, is stepping into the role in January (Aug. 6, p. 6). Russell Massaro, executive vice president, was again the second-highest paid employee, with total compensation of $563,143 for 2006, 13.8% lower than his 2005 pay, according to the report.
Joint Commission Resources, the commissions not-for-profit consulting and publishing arm, fared well, too. It reported revenue of $41.8 millionup 6% from 2005and expenses of nearly $38 million, up 11% from 2005, according to the filing. Publication and multimedia sales generated most of that revenue, at $16.1 million, while consultant fees added another $8.8 million to the mix.
Executive compensation underwent a restructuring, with one position added and overall benefit and deferred compensation plans for the six senior managers taking a reduction to $410,947 in 2006 from $470,471 in 2005.
Karen Timmons, JCRs chief executive officer, received a 33.7% jump in total compensation to $689,354, because of an executive incentive payout based on the companys performance.
In 2006, the Joint Commission introduced subscription billing, which lets facilities pay an annual subscription for services. Another fee will be required in the years when surveyors conduct on-site reviews, according to the filing. Joint Commission and JCR also expanded the International Center for Patient Safety and began a collaborative effort to reduce the occurrence of five safety problems over five years in several countries.