Healthcare associations face steep revenue declines as meetings go virtual
Skip to main content
MDHC_Logotype_white
Subscribe
  • My Account
  • Login
  • Subscribe
  • News
    • This Week's News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • People
    • Regional News
    • Digital Edition
    • Biden's early approach to virus: Underpromise, overdeliver
      Dr. Karen DeSalvo
      Next Up Podcast: What to expect with telehealth and healthcare technology in the next 4 years
       Alan B. Miller
      Looking ahead with optimism as we continue to transform healthcare
      Cable news and the gender gap
    • Biden's early approach to virus: Underpromise, overdeliver
      Two travel nurses wearing personal protective equipment.
      Healthcare providers face high costs, demand for agency staff as COVID-19 rages
      An older man wearing a mask receiving a vaccine.
      Want more diversity in clinical trials? Start with the researchers
      A phone screen showing the question, "Mary we hope this information was helpful and we'd like to keep guiding you. Are you interested in knowing when it's your turn to receive the vaccine?"
      Chatbots, texting campaigns help manage influx of COVID vax questions
    • Health suffers as rural hospitals close
      Medicare ACO participants fell in 2021
      Louisiana gets reports vaccine providers are discriminating
      'We know this is real': New clinics aid virus 'long-haulers'
    • Last-minute COVID costs cut into UnitedHealthcare's $396 million operating income
      CMS approves rule forcing insurers to ease prior authorization
      COVID-19 still a big uncertainty for insurers in 2021
      Health insurers' outlook boosted after Dems' Georgia win
    • It's a secret: California keeps key virus data from public
      lacewell_linda_supertinendent_dept_of_financial_services_8.47.jpg
      New York state investigates drug price spikes during pandemic
      Health experts blame rapid expansion for vaccine shortages
      HHS freezes rule targeting community health centers' drug discounts
    • By the Numbers: 20 largest healthcare investment banks in 2020
      Providers await new HHS coronavirus grant reporting deadline
      Operation Warp Speed Dr. Moncef Slaoui, Pfizer Group President Angela Hwang, Moderna CEO Stephane Bancel, CVS Health Executive Vice President Karen Lynch and McKesson CEO Brian Tyler participate in a panel discussion on the COVID-19 vaccine.
      Hospitals, drug companies strive to stand out virtually at JPM
      Intermountain, Trinity, Memorial Hermann behind $300M private equity fund
    • Next Up Podcast: What to expect with telehealth and healthcare technology in the next 4 years - Transcript
      Dr. Karen DeSalvo
      Next Up Podcast: What to expect with telehealth and healthcare technology in the next 4 years
      A man in a room with servers.
      Momentum grows to outsource hospital tech functions in 2021
      5 things to know about Google's $2.1B Fitbit acquisition
    • An older man wearing a mask receiving a vaccine.
      Want more diversity in clinical trials? Start with the researchers
      Avocado
      Avocado a day keeps the doctor away
      50% of Americans make resolutions. Fewer than 27% keep them over time.
      Data Points: Sticking with your resolutions
      U.K. chief scientist says new virus variant may be more deadly
    • Cerner names Erceg as new CFO
      Elizabeth Richter will serve as acting CMS administrator
      Providence names new chief financial officer
      Wisconsin's top health official departing for federal job
    • Midwest
    • Northeast
    • South
    • West
  • Insights
    • ACA 10 Years After
    • Best Practices
    • InDepth Special Reports
    • Innovations
    • The Affordable Care Act after 10 years
    • New care model helps primary-care practices treat obesity
      doctor with patient
      COVID-19 treatment protocol developed in the field helps patients recover
      Rachel Wyatt
      Project to curb pressure injuries in hospitals shows promise
      Yale New Haven's COVID-19 nurse-staffing model has long-term benefits
    • Modern Healthcare InDepth: Breaking the bias that impedes better healthcare
      Videos: Healthcare industry executives describe their encounters with racism
      Michellene Davis
      Healthcare leadership lacks the racial diversity needed to reduce health disparities
      Dr. James Hildreth
      How medical education can help fight racism
      Quotes from rebadged employees
      Outsourcing IT, revenue cycle takes toll on internal culture
    • A phone screen showing the question, "Mary we hope this information was helpful and we'd like to keep guiding you. Are you interested in knowing when it's your turn to receive the vaccine?"
      Chatbots, texting campaigns help manage influx of COVID vax questions
      A woman with a wearable sensor talking to her provider.
      Wearable sensors help diagnose heart rhythm problems in West Virginia
      self service station
      COVID-19 pushes patient expectations toward self-service
      Targeting high-risk cancer patients with genetics
  • Transformation
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Highmark Health inks six-year cloud, tech deal with Google
      Study: 1 in 5 patients report discrimination when getting healthcare
      HHS proposes changing HIPAA privacy rules
      Android health records app launches at 230 health systems
    • California hospitals prepare ethical protocol to prioritize lifesaving care
      Amazon, JPMorgan Chase, Berkshire Hathaway disband Haven
      Digital pathways poised to reshape healthcare continuum in 2021
      Healthcare was the hardest hit by supply shortages across all U.S. industries
    • A phone screen showing the question, "Mary we hope this information was helpful and we'd like to keep guiding you. Are you interested in knowing when it's your turn to receive the vaccine?"
      Chatbots, texting campaigns help manage influx of COVID vax questions
      A woman with a wearable sensor talking to her provider.
      Wearable sensors help diagnose heart rhythm problems in West Virginia
      New care model helps primary-care practices treat obesity
      How hospitals are building on COVID-19 telehealth momentum
    • Regional insurers bet big on virtual-first plans
      MedPAC votes to boost hospital payments, freeze or cut other providers
      Most Next Gen ACOs achieved bonuses in 2019
      Congress recalibrates Medicare Physician Fee Schedule after lobbying
  • Data/Lists
    • Rankings/Lists
    • Interactive Databases
    • Data Points
    • Health Systems Financials
      Executive Compensation
      Physician Compensation
  • Op-Ed
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
    • Wellstar CEO calls adapting for the pandemic her bold move
      Howard P. Kern
      Recognizing the value of telehealth in its infancy
      Dr. Stephen Markovich
      A bold move helped take him from family doctor to OhioHealth CEO
      Dr. Bruce Siegel
      Why taking a hospital not-for-profit was Dr. Bruce Siegel’s boldest move
    • Barry Ostrowsky
      Ending racism is a journey taken together; the starting point must be now
      Laura Lee Hall and Gary Puckrein
      Increased flu vaccination has never been more important for communities of color
      John Daniels Jr.
      Health equity: Making the journey from buzzword to reality
      Mark C. Clement and David Cook
      We all need to 'do something' to fight inequities and get healthcare right, for every patient, every time
    •  Alan B. Miller
      Looking ahead with optimism as we continue to transform healthcare
      Dr. Bruce Siegel
      By protecting the healthcare safety net, Biden can put us on the path to a stronger country
      Healing healthcare: some ideas for triage by the new Congress, administration
      Dr. Sachin H. Jain
      Medicare for All? The better route to universal coverage would be Medicare Advantage for All
    • Letters: Eliminating bias in healthcare needs to be ‘deliberate and organic’
      Letters: Maybe dropping out of ACOs is a good thing for patients
      Letters: White House and Congress share blame for lack of national COVID strategy
      Letters: VA making strides to improve state veterans home inspections
    • Sponsored Content Provided By Optum
      How blockchain could ease frustration with the payment process
      Sponsored Content Provided By Optum
      Three steps to better data-sharing for payer and provider CIOs
      Sponsored Content Provided By Optum
      Reduce total cost of care: 6 reasons why providers and payers should tackle the challenge together
      Sponsored Content Provided By Optum
      Why CIOs went from back-office operators to mission-critical innovators
  • Awards
    • Award Programs
    • Nominate
    • Previous Award Programs
    • Other Award Programs
    • Best Places to Work in Healthcare Logo for Navigation
      Nominations Open - Best Places to Work in Healthcare
      Nominations Open - Health Care Hall of Fame
      Nominations Open - 50 Most Influential Clinical Executives
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Top 25 Minority Leaders
    • Top 25 Women Leaders
    • Excellence in Nursing Awards
    • Design Awards
    • Top 25 COOs in Healthcare
    • 100 Top Hospitals
    • ACHE Awards
  • Events
    • Conferences
    • Galas
    • Webinars
    • COVID-19 Event Tracker
    • Leadership Symposium
    • Healthcare Transformation Summit
    • Women Leaders in Healthcare Conference
    • Workplace of the Future Conference
    • Strategic Marketing Conference
    • Social Determinants of Health Symposium
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Minority Leaders Gala (2022)
    • Top 25 Women Leaders Gala
  • Listen
    • Podcast - Next Up
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
    • Dr. Karen DeSalvo
      Next Up Podcast: What to expect with telehealth and healthcare technology in the next 4 years
      Carter Dredge
      Next Up Podcast: Ready, set, innovate! Innovation and disruption in healthcare
      Next Up Podcast: COVID-19, social determinants highlight health inequities — what next?
      Ceci Connolly
      Next Up Podcast: How to navigate the murky post-election waters
    • Beyond the Byline: Regulators aim to boost value push with fraud and abuse law updates
      An older man wearing a mask receiving a vaccine.
      Beyond the Byline: Verifying information on the chaotic COVID-19 vaccine rollout
      doctor burnout
      Beyond the Byline: How healthcare supply chain struggles contribute to employee burnout
      Beyond the Byline: Covering race and diversity in the healthcare industry
    • Leading intention promote diversity and inclusion
      Introducing Healthcare Insider Podcast
    • The Check Up: Chip Kahn
      The Check Up: Chip Kahn of the Federation of American Hospitals
      The Check Up: Trenda Ray
      The Check Up: Trenda Ray of the University of Arkansas for Medical Sciences
      The Check Up: Dr. Kenneth Davis
      The Check Up: Dr. Kenneth Davis of Mount Sinai Health System
      The Check Up: Dr. Thomas McGinn
      The Check Up: Dr. Thomas McGinn of CommonSpirit Health
    • Video: Ivana Naeymi Rad of Intelligent Medical Objects
  • MORE +
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Finance
May 27, 2020 01:02 PM

Healthcare associations face steep revenue declines as meetings go virtual

Tara Bannow
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    It's been well established that COVID-19 pummeled the finances of healthcare providers. What's been less discussed: It did a similar number on the associations that support those providers.

    Hosting massive, in-person conferences that draw hundreds or thousands of people is one of the main ways groups like the American Hospital Association, the American College of Healthcare Executives and the Medical Group Management Association make money. While they've quickly pivoted to online gatherings, a virtual conference draws just a fraction of the revenue of an in-person event.

    "It's crushing to not have these events," said Andrew Swanson, MGMA's vice president of industry insights.

    A recent survey of almost 900 association leaders found that 34% of healthcare associations expect to lose $500,000 or more each due to events being canceled because of COVID-19, compared with 21% for all other industries, according to the American Society of Association Executives.

    The Radiological Society of North America on Tuesday canceled the in-person version of its annual conference, slated to begin in late November in Chicago. That's a big deal for an organization that draws 45% of its total revenue from the annual scientific assembly, according to its tax form for the year ended June 30, 2019. RSNA has canceled the physical meeting only twice in its history—1943 and 1945—due to transportation and gasoline supply shortages during and after World War II. The annual event attracts close to 52,000 attendees.

    "We are currently evaluating the financial implications of transitioning to an all-virtual meeting, recognizing that there are both adverse revenue implications and cost savings associated with this decision," Mark Watson, the group's executive director, said in a statement. "However, health and safety remain our primary consideration."

    For MGMA, virtual conferences generate just 20% of the revenue of in-person conferences. That's because admissions fees are roughly half what they would be otherwise—sometimes less—and there's almost no revenue from sponsors, who would otherwise pay for booths in an exhibitor hall, Swanson said.

    There's also the question of whether health systems and other providers will cut ties with associations as they look to trim their ever-growing expenses. Some association leaders say they're already giving members more leeway when their dues come up for renewal, although none signaled plans to lower the prices of their memberships. Some healthcare associations have already struggled with steep declines in dues revenue in recent years.

    Maybe it's not surprising, then, that associations are following in the footsteps of their provider clients in questioning whether to lay off or furlough employees or tap into their reserves to stay afloat.

    One bright spot: Healthcare associations appear to be less reliant on reserves than their counterparts in other industries. The ASAE survey found 42% of healthcare associations plan to use less than 10% of their reserves during the pandemic. Across all other industries, that was 23%. Among healthcare associations, 22% said they don't expect to have to go into their reserves at all, compared with 19% across all other industries.

    "We all have reserves for a reason, and this is the rainy day," said Susan Robertson, ASAE's CEO. "But you work really hard to build reserves for the future and it doesn't feel good to use them. Overall, healthcare organizations are faring pretty well there."

    Deborah Bowen, CEO of the American College of Healthcare Executives, said her organization's board hasn't decided yet whether to use its reserves. That organization was among the first to decide to call off a major in-person conference that had been scheduled for late March in Chicago. Education, which includes conferences, comprises about 40% of ACHE's revenue, Bowen said.

    "There's no doubt that's a blow," she added.

    Some associations say they've been churning out webinars and other online education for their members who are in the trenches of treating COVID-19 patients and struggling with canceled procedures. Much of it has been free so far, but depending on how long the pandemic lasts, association leaders say they'll need to find a way to charge for them.

    "My gosh, for us, we're busier than ever," said Joe Fifer, CEO of the Healthcare Financial Management Association. "We're trying to reconstruct everything and deliver it in different ways."

    HFMA had to cancel the live version of its annual conference, which was scheduled for late June. That was a "big deal" for the association, Fifer said. Instead, HFMA, which typically derives roughly one-third of its revenue from conferences, will deliver the content virtually over a three-month period. Members will be able to access the content for free under HFMA's all-inclusive membership model.

    "It won't be the same as the exhibit hall and all that activity, but it's the next best thing," Fifer said. "We're trying to make lemonade out of lemons here."

    More than half of the roughly 450 registrants for HFMA's annual conference opted to receive refunds for their tickets, Fifer said. Others applied the money to next year's conference or turned it into multiple years' worth of membership dues.

    The Healthcare Information and Management Systems Society has taken heat from would-be exhibitors and sponsors for refusing to offer refunds after the organization canceled its annual trade show days before it was slated to start in March. Instead, HIMSS is offering partial credit toward its annual events in 2021 and 2022. Conferences comprised almost half of HIMSS' revenue in its fiscal 2018. HIMSS declined to comment.

    MGMA so far doesn't plan to cancel the live version of its annual conference in San Antonio in October, but the team is closely monitoring government rules around large gatherings, Swanson said.

    "We're nervous," he added.

    MGMA's annual conference typically draws around 3,000 attendees plus 1,000 exhibitors, partners and sponsors. Obviously, this year's event will be much smaller, he said, noting that it will be a "hybrid," with enhanced virtual offerings for people who don't want to attend in person. For example, instead of virtual attendees watching speakers from a livestream, presenters will pre-record their sessions for the virtual audience and participate in a live question and answer session with virtual attendees.

    "With the face-to-face conference, you can catch the speaker after and have a physical, one-on-one chat with them," Swanson said. "With that opportunity not being present, we're trying to do something different to bring that same exposure of attendee to speaker."

    MGMA already moved conferences scheduled for April and May online, and found that those who attended were a "totally different crew" than those who had planned to attend in person, Swanson said. The association gave refunds to people who were signed up to attend those events in person.

    The upside of virtual conferences is organizations can potentially draw a much larger audience than they would to an in-person event. That's because those who don't have the money or time to attend the in-person conference might watch online instead. With health systems cutting travel budgets and executives scrambling to manage the COVID-19 crisis, that could be a lot of people.

    "An association might have had 2,000 people attend its in-person conferences, and 6,000 attend its virtual ones," said Amy Ledoux, ASAE's chief learning and meetings officer. "There is an opportunity for virtual to be quite profitable for organizations because of the engagement of more people. You're able to reach more people that might not have had the money for travel and things of that sort."

    Education programs such as conferences were the AHA's second largest revenue category behind dues, having drawn about 18% of its total revenue in 2018, the latest year for which tax information is available. Michelle Hood, the AHA's chief operating officer, said in a statement that the association is transitioning several key 2020 meetings and conferences to virtual events and will continue to grow its revenue sources beyond live events.

    The American Medical Association's major meetings are dedicated to policymaking and don't draw revenue from exhibitors, registration or commercial advertising, spokesman R.J. Mills wrote in an email. The next such meeting was planned for June and will be held virtually.

    ACHE is still learning how to deliver a valuable experience virtually, and what to charge for that, Bowen said.

    "I think we're recognizing that this is simply a year that we're going to prioritize service and value to members over what we're going to gain in revenues," she said. "How that balances out at the end of the year, I don't know."

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    By the Numbers: 20 largest healthcare investment banks in 2020
    By the Numbers: 20 largest healthcare investment banks in 2020
    Providers await new HHS coronavirus grant reporting deadline
    Providers await new HHS coronavirus grant reporting deadline
    Sponsored Content
    Get Free Newsletters

    Sign up for free enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today

    The weekly magazine, websites, research and databases provide a powerful and all-encompassing industry presence. We help you make informed business decisions and lead your organizations to success.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS
    • Instagram

    Stay Connected

    Join the conversation with Modern Healthcare through our social media pages

    MDHC_Logotype_white
    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • This Week's News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition
    • Insights
      • ACA 10 Years After
      • Best Practices
      • InDepth Special Reports
      • Innovations
    • Transformation
      • Patients
      • Operations
      • Care Delivery
      • Payment
    • Data/Lists
      • Rankings/Lists
      • Interactive Databases
      • Data Points
    • Op-Ed
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Awards
      • Award Programs
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Top 25 Minority Leaders
        • Top 25 Women Leaders
      • Nominate
      • Previous Award Programs
        • Excellence in Nursing Awards
        • Design Awards
        • Top 25 COOs in Healthcare
      • Other Award Programs
        • 100 Top Hospitals
        • ACHE Awards
    • Events
      • Conferences
        • Leadership Symposium
        • Healthcare Transformation Summit
        • Women Leaders in Healthcare Conference
        • Workplace of the Future Conference
        • Strategic Marketing Conference
        • Social Determinants of Health Symposium
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Minority Leaders Gala (2022)
        • Top 25 Women Leaders Gala
      • Webinars
      • COVID-19 Event Tracker
    • Listen
      • Podcast - Next Up
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • MORE +
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing