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 revenue 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 in June 2007, the AMA noted that roughly $400,000 in lost revenue could be attributed to a dues-waiver program for member physicians in hurricane-affected states.
According to the AMA annual report, however, the organization made about 2% more in 2006 than in 2005. According to the report, the AMA took in $286 million in 2006 compared with $280.1 million in 2005.
Differences between the two reports include how the AMA made just less than $8 million in the sale of securities in 2006, compared with more than $18.6 million in 2005. These figures are included as taxable income in the Form 990, but not in the annual report, which lists operational revenue.
The tax forms breakdown for revenue shows 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 rose 16% to almost $3.4 million from less than $2.9 million the year before. At the top is Michael Maves, M.D., 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, M.D., who was president the first half of the year, and to William Plested, M.D., 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 shows 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.
Maves said that the association will continue to work closely with state and specialty societies on membership-building activities. He noted that he started at the AMA in 2002 and, in 2001, it had lost 17,000 members.
Weve certainly made some progress in that area, but it still remains a challenge, Maves said, adding that the organization is examining the needs of physicians and what it can do to help in terms of advocacy, professional standards and business tools.
In 2007, Maves said that these efforts included working with the AARP on promoting the State Childrens Health Insurance Program. For 2008 and beyond, he said that the AMA has committed to spending $16 million on its three-year Voice for the Uninsured campaign.What do you think? Write us with your comments at [email protected]. Please include your name, title and hometown.