While still lagging behind its totals from pre-recession years, the American Medical Association recorded a profit of $23.9 million for 2010, up 44.8% from 2009, according to the association's annual report (PDF).
AMA profit up 44.8% in 2010
It was the AMA's eleventh-straight year of operating profits, and the second consecutive year of growth after profits plummeted almost 89.8% in 2008 to $2.5 million from $24.4 million in 2007.
The AMA annual report includes the organization's for-profit operations, and it usually differs widely from its Internal Revenue Service Form 990, which provides details on not-for-profit operations only and showed a $13.7 million loss in 2009.
The increase in profit was not gleaned from any one major source. Part of it came from a 1.9% increase in revenues to $273.8 million from $268.6 million in 2009. General and administrative expenses were down 1.1% to $203.9 million from $206.1 million. The report notes that some $6.5 million in costs were not included last year because of a 2009 "restructuring program" that included one-time severance and other related benefit costs.
The report lists AMA membership at approximately 216,000; this compares evenly with the figure from a different report released in advance of next month's annual AMA House of Delegates meeting that gave the exact number of 215,854 as of Dec. 31. This was a 5.3% drop from the 228,000 listed in the 2009 annual report.
The 2010 annual report states that revenue from membership dues declined 9.9% to $38.1 million from $42.3 million in 2009. But advertising income from AMA publications was up 12.4% to $26.3 million from $23.4 million. Income from “royalties and credentialing products” increased 8.4% to $72 million from $66.4 million.
Salary and benefits expenses fell 4.1% to $125.8 million from $131.2 million, even as the number of employees increased 1.3% to 1,059 from 1,045.
The report also touts the organization's Amagine Web portal, which offers doctors access to 20 health information technology applications and which the AMA says will help members meet HHS' criteria for the meaningful use of electronic health-record systems and become eligible for federal IT subsidies. The report notes that the AMA spent $8.5 million on Amagine in 2010 on top of the $7.5 million it spent in 2009. "In 2011, AMA expects this new venture to be fully operational," the report states, "but as this is a new venture, it is not expected to be profitable for several years."
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