The Catholic Health Association reported a healthy profit for the year that ended in June, after better-than-expected investment returns offset the Catholic Health Associations falling dues revenue.
The St. Louis-based trade group closed its books with net income of $3.3 million, a 6% drop from a year earlier, as revenue slipped 3.8% to $17.8 million from $18.5 million the prior year, according to yearly tax forms for the year ended June 30.
Dues revenue dropped to $14.7 million from $16.1 million a year earlier, thanks to a 10% cut to members fees. CHA has benefited from strong operational performance over the last few years, said CHA spokesman Fred Caesar in an e-mail, and the board deemed it appropriate to pass along this benefit to members in the form of a dues reduction.
The association reported net income of $3.5 million on revenue of $18.5 million for fiscal 2006. A year earlier, profits totaled $3.9 million on revenue of $20.6 million.
However, investment revenue more than doubled to $1 million from roughly $489,000 the prior year, which ended June 30, 2006. The association reported flagging investments in 2006 after a review of its investment portfolio and policies (Dec. 4, p. 17). The CHA screens investments to remove those that conflict with its mission and church teachings.
Meanwhile, the associations expenses fell 3.3% to $14.6 million. Caesar attributed the drop to a one-time contribution in the prior year of $500,000 to the Leadership Conference of Women Religious.
Vacancies also contributed to below-budget expenses, the CHA said in supplemental financial records posted on the trade groups Web site. As part of the transition to a new president and CEO, management was diligent in reviewing all open positions prior to performing recruitment, the CHA said.
Sister Carol Keehan succeeded the Rev. Michael Place as the CHAs top executive in October 2005.
Keehan earned $659,439 for her first full year as CHAs president and chief executive officer. She received $470,614 for the prior year, after joining the association two months into fiscal 2006.
Place, now senior vice president for the Social Mission in Ministerial Development Department at Resurrection Health Care, Chicago, received $66,000 in compensation in fiscal 2007 under a post-employment agreement, tax records reported.