The Chicago-based American Medical Association took in $8.6 million less in 2006 than it did in 2005, while spending increased more than $3 million over the previous year, according to its 2006 Internal Revenue Service Form 990.
AMA revenues dropped 3.3% to $252.3 million from $260.9 million; while expenses increased 1.3% to $225.4 million from $222.3 million the previous year, according to the tax document, filed Nov. 15.
The revenue drop can partly be attributed to declining membership. The AMA has previously reported that in 2006, some 240,000 physicians belonged to the group, a 1.6% drop from the 244,000 on the membership rolls in 2005. In a report filed earlier this year, the AMA noted that around $400,000 in lost revenue could be attributed to a dues-waiver program for member physicians in hurricane-affected states.
A representative from the AMA was not available to comment on the decline in revenue or on plans to reverse declining membership trends that have resulted in a loss of about 20,000 members in the past four years.
The tax forms breakdown for revenue showed that money from program services and government contracts increased 1.5% to $92.5 million from $91.1 million, membership dues and assessments fell almost 3.2% to under $47 million from more than $48.5 million; and revenue from dividends and interest jumped almost 40.4% to just under $11.5 million compared with just more than $8.1 million the year before.
On the other side of the ledger, increases in expenses included higher compensation for officers and executives, which went up 16% to almost $3.4 million from less than $2.9 million the year before.
At the top is Michael Maves, the AMAs executive vice president and chief executive officer, who saw his compensation, benefits and paid expenses increase more than 3.7% to $682,000 from $658,000.
The $235,000 paid to both J. Edward Hill, who was president the first half of the year, and to William Plested, who was president the second half, was the same as it was in 2005. The total amount included roughly $220,000 in compensation and the balance in a benefits package.
Salaries and wages for other employees increased almost 5.1% to just under $77.9 million in 2006 compared with $74.1 million in 2005. Employee benefits rose 8.6% to $16.2 million from $14.9 million the year before.
The 990 showed that the AMA had assets of $406.4 million at the beginning of the year, which grew 8.9% to almost $442.6 million by the end of 2006. Liabilities, however, also increased almost 9.4% to just under $128.7 million from almost $117.7 million.