The American Medical Association reported increased revenue and membership in 2013, though expenses related to the move of its corporate headquarters resulted in the organization showing a loss for the year.
In the 2013 annual report, which won't be official until the AMA House of Delegates votes to approve it at its June 7-11 meeting, it's stated that revenue increased almost 2.4% to $280.4 million from $273.9 million in 2012.
It's noted in the report that the Chicago-based organization would have realized a 7.8% increase in profit to $17.9 million from $16.6 million, but instead shows a loss of $15.1 million for the year due to relocation expenses of $33 million—which includes a $28.8 million “noncash lease termination charge” covering rent obligations at its old building through August 2015.
According to the report, the new lease will generate “substantial savings” as the volume of space occupied and the cost for that space are lower than the former space.
A portion of the AMA revenue increase was attributed to a 3.7% increase in publishing and business services revenue to $227 million from $218.8 million. This included a 9.5% increase in its “book and products” segment to $80.4 million from $73.4 million. Most of that jump was linked to the sales of the AMA Current Procedural Terminology code set.
“CPT royalties drove this increase, reporting $6.4 million more in 2013 than the prior year, up 22%,” the report stated. “Coding book volumes continue to be adversely impacted by the growth in online products, but sales of books and tools to help transition to ICD-10 were a large factor in the $0.8 million book sale improvement.”
Membership dues also accounted for a small part of the revenue increase. According to a demographics report, which also needs HOD approval before becoming official, AMA membership dues rose 3.1% to $39.9 million from $38.7 million as membership increased 1.5% to 227,874 from 224,503. It was the third-consecutive year of membership growth.
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