Profits are up and membership is down at the American Medical Association, whose 2009 annual report listed an operating profit of $16.5 million—up 560% from $2.5 million in 2008—and a membership of 228,000, which is down almost 3.4% from the 236,000 reported the previous year.
AMA profits boom, but membership dips
Though profit was way up from the dismal returns seen in 2008, it still lags far behind the gains posted in other recent years. This year's $16.5 million figure is almost 32.4% lower than the $24.4 million the AMA made in 2007 and 45.5% lower than the $30.3 million profit recorded for 2006. And, while it was the 10th-straight year the AMA finished in the black, revenue declined $13.4 million in 2009 as AMA publishing operations saw a $7.7 million decline in advertising revenue and money from membership dues declined by $1.7 million.
Loss of revenue was offset by spending $14.6 million less on marketing and promotion than in 2008, a decline of $3.7 million spending on meetings and travel, and a $1.9 million savings seen from reducing staff size. In all, general administrative expenses declined to $206.1 million from $226.1 million in 2008.
The financial figures in the annual report include information from across the various entities within AMA operations and can vary greatly from the organization's 990 tax form, which only includes information on the organization's not-for-profit enterprises. On its 2008 Form 990, the AMA reported a $21.3 million loss compared with a $31.4 million profit in 2007.
Membership dues account for about 16% of the AMA's revenue, and the loss of another 8,000 members continued the AMA's downward trend in that area. The 163-year-old, Chicago-based organization's membership was reported at 241,000 for 2007, which is almost 5.4% higher than the 228,000 reported for 2009.
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