AHA sees sur­plus

As­so­ci­a­tion re­ports 11.3% in­crease in fis­cal 2012

Modern Healthcare - - LATE NEWS - Ashok Sel­vam

The Amer­i­can Hos­pi­tal As­so­ci­a­tion posted an $8.7 mil­lion sur­plus in fis­cal 2012, thanks in part to in­creased mem­ber ac­tiv­ity com­ing from un­cer­tainty sur­round­ing the Pa­tient Pro­tec­tion and Af­ford­able Care Act, of­fi­cials from the trade group said Thurs­day.

The sur­plus rep­re­sented an 11.3% in­crease from the as­so­ci­a­tion’s fis­cal 2011. The AHA re­ported the fig­ures Thurs­day morn­ing to the In­ter­nal Rev­enue Ser­vice on its Form 990. Ex­penses to­taled $109.4 mil­lion, a 4% in­crease from the pre­vi­ous year.

The fi­nan­cial per­for­mance rep­re­sents con­sis­tency, said AHA Se­nior Vice Pres­i­dent and Chief Fi­nan­cial Of­fi­cer John Evans. “Our pro­gram rev­enues and in­vest­ments are do­ing well again, our ex­penses are pretty much un­der con­trol,” Evans said.

In the pre­vi­ous year, the AHA saw a steep in­crease in in­vest­ment in­come, a 140.6% rise from fis­cal 2010 to 2011. Fis­cal 2012’s in­vest­ment re­turns—a more mod­est 6% bump, to $6.9 mil­lion—demon­strate a re­cov­ery to pre­re­ces­sion fig­ures, said AHA board Chair­man Dr. Ben­jamin Chu.

The AHA also spent less on lob­by­ing, with spend­ing fall­ing by 20.6% in fis­cal 2012, which ended Sept 30. Chu and Evans said that was ACA-re­lated, as the group had heav­ily lob­bied while law­mak­ers were de­bat­ing the health­care law. The AHA spent $1.9 mil­lion on lob­by­ing in fis­cal 2012, a de­cline from the $2.4 mil­lion spent in fis­cal 2011 and again in 2010.

And while the as­so­ci­a­tion spent less money ex­ert­ing its in­flu­ence on the health­care re­form ef­fort, it also brought in an ad­di­tional $2.8 mil­lion in dues as hos­pi­tals looked to the AHA for help un­der­stand­ing the Af­ford­able Care Act. Chu, who serves as group pres­i­dent for the South­ern Cal­i­for­nia and Hawaii di­vi­sion of Kaiser Per­ma­nente in Pasadena, Calif., said AHA mem­ber­ship last year in­creased by 14 mem­bers to 5,160 hos­pi­tals or health sys­tems, boost­ing mem­ber­ship dues to $78.6 mil­lion.

De­spite the up­heaval caused by the brisk pace of merg­ers and ac­qui­si­tions, Chu said, at­ten­dance has been ro­bust at AHA events be­cause hos­pi­tal lead­ers are striv­ing to adapt to chang­ing mod­els of pay­ment and health­care de­liv­ery. “Peo­ple are cu­ri­ous in look­ing and seek­ing ways to help one an­other,” Chu said. Hos­pi­tals paid $18.7 mil­lion for those pro­grams in fis­cal 2012, com­pared with $18.4 mil­lion the pre­vi­ous year.

AHA em­ployee salaries in­creased by 5.2% in fis­cal 2012. The as­so­ci­a­tion raised Pres­i­dent and CEO Richard Umb­den­stock’s base salary 2.4% to $921,246 from $899,807. His to­tal com­pen­sa­tion, how­ever, dropped 12% to $2.9 mil­lion from $3.3 mil­lion in fis­cal 2011, re­flect­ing a large sum drawn from de­ferred com­pen­sa­tion in 2011, when he be­came fully vested in his pen­sion, Evans said.

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