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.
Better results for MGMA
Despite bleak 2009, fiscal 2010 shows gains
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 divided 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 0.4% to $26.9 million from $26.8 million; expenses increased 0.6% to $25.2 million from just above $25 million; and income declined 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 about 20% to $15.8 million from $13.1 million, and he attributed the growth to the rebounding value of the MGMA's investment portfolio.
Revenue from membership dues fell 0.7% to just below $8.4 million from almost $8.5 million. The MGMA has about 21,500 members who lead 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.”
Salary expenses at the MGMA grew 9% to $15.4 million from $14.1 million. With a base salary of $473,500 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 $252,500 and received total compensation of $297,000. James Cauble, executive vice president and chief operating officer, received total compensation of $296,000.
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