Based on its 2009 IRS Form 990, the Medical Group Management Association, Englewood, Colo., seemed to hold up quite well during the recession of 2009, but MGMA President and CEO Dr. William Jessee said looks can be deceiving.
MGMA revenue flat, income down 3%
Because the 990 is filed for the MGMA's fiscal 2010—which ran from July 1, 2009, to June 30, 2010—the bleakest months of the economic recession were split between fiscal 2009 and fiscal 2010.
"Our real hit was in calendar year 2009, so we split that between two fiscal years," Jessee explained.
For fiscal 2010, the MGMA's revenue rose less than 0.4% to almost $26.9 million from almost $26.8 million; expenses increased almost 0.6% to almost $25.2 million from just above $25 million; and income declined a little more than 3% to just over $1.7 million from just below $1.8 million.
Jessee also noted how the organization's “net assets and fund balances” grew 20% to almost $15.8 million from just over $13.1 million, and he attributed the growth to the increased value of the MGMA's investment portfolio. “The stock market coming back helped a lot,” he explained.
Revenue from membership dues fell almost 0.7% to just below $8.4 million from almost $8.5 million. The MGMA has about 21,500 members who lead some 13,700 medical groups where about 275,000 physicians practice. Jessee said membership levels have been flat after steady growth of between 3% and 4% over the past few years, but it's unclear whether this is a result of trends toward practices consolidating and hospitals or healthcare systems acquiring practices.
"We get concerned about 'Will consolidation affect membership?' but I don't know if it really has so far," Jessee said, adding that demand for MGMA education and research materials remains strong. "We have value for people who manage physician services—whether it's a free-standing practice or part of an integrated delivery organization."
Revenue from "conferences and education" was down to just over $7.4 million from almost $8.1 million in fiscal 2010, but Jessee attributed the drop mostly to the location of the association's 2009 conference rather than the economy. Every five to seven years, he said, the MGMA hosts the annual conference in its hometown of Denver, which always attracts a smaller crowd and the organization adjusts its budget accordingly.
Paid attendance for the Denver conference was about 2,150, while 2010's event in New Orleans drew about 2,800 paid attendees, with overall attendance around 4,600. Jessee said he expects attendance to be strong at this year's conference, which will take place Oct. 23-26 in Las Vegas.
Salary expenses at the MGMA grew just above 9% to almost $15.4 million from just more than $14.1 million.
With a base salary of almost $473,000 plus a bonus and benefits, Jessee received $657,000 in compensation. Rosemarie Nelson, principal of the MGMA Health Care Consulting Group, had a base of almost $253,000 and received total compensation of almost $297,000. James Cauble, executive vice president and chief operating officer, had a base of almost $248,000 and received total compensation of almost $296,000.
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