Profits were down in 2008 at the American Medical Group Association, based on its Internal Revenue Service Form 990 tax filing. The association took in more money in 2008 than it did the year before, but it also spent more.
According to its recently filed Form 990, the Alexandria, Va.-based AMGA saw its revenue climb to just under $7.1 million for almost a 4.5% increase from just under $6.8 million in 2007. Expenses rose almost 7% to $6.7 million from $6.2 million, and investment income fell almost 66% to $32,850 from $96,435, resulting in a 22.8% decline in profit to $436,866 from $565,952. In contrast, the American Medical Associations recently released annual report shows that the AMA registered higher expenses, and lower revenue, membership and profits last year (AMA costs up; revenue, membership declining, June 8).
The AMGA reported earlier this year that, in 2008, it added 37 new member groups representing more than 5,200 physicians. The organization now has 346 multispecialty medical group members representing about 96,000 physicians, and it reported that the average member group has 286 physicians and 20 satellite locations.
President and CEO Donald Fisher received compensation totaling $785,937, and Chief Financial Officer Clyde Morris received compensation totaling almost $269,000.
Fishers compensation increased 28.6% from the $611,042 he received in 2007. That figure resulted in Fisher placing 25th on the association executive compensation list of sister publication Modern Healthcare . In 2002, Fisher placed 95th on the Modern Healthcare reader poll ranking the 100 Most Powerful People in Healthcare.
Fisher, whose 2007 compensation (as listed on the 990s) increased only 3.6% from $589,743 in 2006, says that his compensation increase was not a significant blip, and the large increase is more a function of what the 990s are reporting now that they didnt before.
The 990 notes that the CEOs compensation is reviewed annually by five board members, the AMGAs counsel and an outside consulting firm. Its also noted that the consultant reviews the compensation for key employees every three to five years.
In all, the organization pays it officers and key employees just under $2 million, while other employees salaries total almost $1.1 million. We have a very stable senior staff, says Fisher, who notes that he is wrapping up his 29th year since taking over as president and CEO in October 1980 and he has no plans to retire. My 401(k) is now a 101(k).
The AMGAs top independent contractors were listed as: Washington-based Health Policy Source, which received $132,000; and Rockville, Md.-based Sam Lin, who received $120,100. Services rendered were characterized as public policy consulting.
The AMGAs top revenue sources in 2008 were: membership dues, just more than $3 million; and its annual meeting, which took in more than $1.5 million. Fisher says attendance at this years meeting in Las Vegas was about 1,600, which represented a 15% increase from the almost 1,400 who attended last years meeting in Orlando, Fla.
I think AMGA is going to continue to grow and will play a growing role in healthcare reform because theres a growing recognition that the delivery system does matter, Fisher said.Submit a letter to the Modern Physician Reader Blog. Please include your name, title, company and hometown. Modern Physician reserves the right to edit all submissions.