The American Medical Group Association took in more money and spent more money in 2009 than in 2008, according to its recently filed federal tax form. And according to Donald Fisher, its president and CEO, the Alexandria, Va.-based group probably raised its profile higher than ever.
AMGA revenue up 4%
Group cites member increase, education programs
“We had a great year,” Fisher said, citing increased membership, record attendance at its annual meeting, successful education programs and increased legislative influence culminating in the creation of accountable care organizations in the healthcare reform law.
According to its Internal Revenue Service Form 990 for 2009, filed May 17, the AMGA had revenue of $7.41 million in 2009, up 4.4% from the $7.1 million it took in during 2008; and it had $7.19 million in expenses, up 7.9% from the $6.66 million it spent in 2008. This all resulted in a profit of $221,513 in 2009, almost a 49.3% drop from the previous year’s total of $436,866.
These figures followed the trends seen in the 990 for 2008, which—in comparison to 2007—showed revenues were up 4.5%; expenses were up almost 7%; and profits were down 22.8% (June 8, 2009, p. 14). “We’re not a banking institution,” Fisher said of the lower profit margin. “We planned on spending more in 2009 and we did.”
That said, Fisher noted that the AMGA’s 2009 revenue total was 150% of what it had budgeted. In 2009, the AMGA added another 40 large-practice members that were said to represent 9,700 physicians. This brought the organization’s membership up to 360 multi-specialty group practices with a combined total of 102,000 doctors. (On average, an AMGA member group consists of 282 doctors practicing across 20 locations.)
Fisher, whose total compensation of $785,937 in 2008 placed him 22nd on Modern Healthcare’s most recent list of highest-paid healthcare association executives (May 10, 2010 p. 24), saw his pay increase 3% to $809,941. In October, Fisher will mark his 30th anniversary as AMGA president. Chief Financial Officer Clyde Morris saw his total compensation increase 7% to $288,000 from almost $269,000.
The group’s top sources of income are membership dues and its annual meeting. Dues revenue increased 7.75% to almost $3.24 million from just over $3 million, and annual meeting revenue increased 15% to almost $1.74 million from almost $1.51 million.
Fisher noted that the AMGA was “much more engaged” in public policy than ever before, and the result was the legislative creation of accountable care organizations. He said ACOs will be a focus of AMGA activities for the next several years—especially lobbying the government on instituting the proper regulatory framework and educating AMGA members on the infrastructure that practices will need to operate as an ACO.
“Our position is we want success—because this is real healthcare reform,” Fisher said. “I thought all the work was in getting the legislation passed but, in truth, it’s just beginning. We’ve never been busier.”
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