(Story updated Aug. 19, 2015)
The American Hospital Association reported higher income in 2014 as the Chicago-based group, the nation's largest hospital trade association, spent less to promote the Affordable Care Act and advocate for Medicaid and Medicare spending.
The association's latest tax forms for 2014 show the trade group's grant awards to Enroll America dropped to $350,000 from $1.1 million in 2013, the last full year before new subsidized insurance options became available under the Affordable Care Act. Enroll America is a not-for-profit ACA enrollment advocacy group based in Washington, D.C.
Another organization, the Coalition to Protect America's Health Care, received no grant funding from the American Hospital Association in 2014 compared with $1 million the year before.
The AHA spent money to boost ACA numbers and build the infrastructure needed for enrollment, which occurred prior to 2014, said John Evans, the association's chief financial officer.
Overall, the American Hospital Association's grants dropped by $2.5 million to $3.7 million. The association's budget may vary from year-end results, said Dr. Jonathan Perlin, board chairman for the association. The AHA uses a very conservative approach, he said, to ensure the trade group's spending is directed toward services for its members and its overall mission. The operating income for the AHA was lower than its total reported income of $14 million, he said. The trade group's audited financial statements show operating income for the AHA and its subsidiaries of $183,000, according to the AHA.
This year, the AHA did award $45,000 to the Joint Commission, which provides accreditation to hospitals and other health care organizations and $25,000 to the National Quality Forum, which measures healthcare quality through public reporting and data. The association made a contribution to the Joint Commission's Center for Transforming Healthcare, a Joint Commission quality improvement group, and the National Quality Forum's annual meeting. Perlin said both grants support the AHA's mission.
The trade group's salary expenses also declined significantly in 2014, by $1.6 million, or 3%. Pension related expenses in 2014 were $2.3 million compared with $7 million in 2013. The AHA froze its pension plan at the end of 2014, which led to the drop, Evans said. Employees now receive a defined contribution towards retirement.
But the AHA paid out more in 2014 to compensate top executives and key employees. Expenses also increased for salaries and wages and payroll taxes. Richard Umbdenstock, the American Hospital Association's outgoing CEO received a total compensation of $2.6 million in 2014 compared to $1.9 million the year before.
Lower expenses combined with an increase of donations and program revenue nearly doubled the trade group's income. The AHA ended 2014 with income of $14.1 million compared with $7.4 million the prior year.
Lobbying expenses totaled $1.9 million in 2014. That's compared with $1.8 million the prior year.
