AMA finishes 2004 in the black
NEWS IN BRIEF — Posted Dec. 27, 2004
The American Medical Association expects a $12.8 million operating profit in 2004, up significantly from the original $4.1 million operating profit projected for the year. The numbers are according to the 2005 plan and budget released at the AMA's Interim Meeting in December.
The Association says business revenue increases and lower variable costs for products it sells as well as lower selling expenses account for the difference.
Membership dues revenue in 2004 is expected to decrease 1.2% -- or $500,000 -- when compared with dues revenue for 2003. However, the $48.4 million the AMA expects from dues in 2004 exceeds the amount originally budgeted for 2004, according to the report.
In 2005, the AMA expects to see $10.3 million in operating profits and is projecting revenue from dues to go up by $100,000. New membership initiatives and better results in dues in 2003 and 2004 led the Association to budget the slight dues revenue increase in 2005, according to the budget report.
As of Sept. 16, the AMA was on target to have 247,000 members at the end of the year. That is a 2% decline from the 2003 level, but there was an increase in the number of people who were direct regular dues-paying members. The figures also make 2004 another year in which the rate of decline is less than what it was in previous years.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/12/27/prbf1227.htm.