Hard Work Pays off for AHIMA in 2004

Hard work and careful planning brought AHIMA success in 2004. Financially, the association saw a return to profitability, strong revenue growth, and solid membership numbers. This annual report summarizes AHIMA and FORE's 2004 operational and financial highlights.

In the Black and Beyond

As in 2003, AHIMA's bottom line saw a financial profit in 2004 (see "The Bottom Line"). In previous years, the AHIMA board made a deliberate decision to use the reserves of the association to invest in additional member services and create the infrastructure for new revenue sources (such as distance education, new textbooks, Communities of Practice, the FORE Library: HIM Body of Knowledge, image marketing, increased alliance activity, and more). As a result, AHIMA expenses exceeded revenues for a number of years.

However, deficit operations were not to continue indefinitely. In recent years, revenue has grown despite a downturn in the economy. In the past four years, revenues have grown an average of 12 percent. In 2004, AHIMA earned a total of $18,689,000, an increase of 8 percent. Areas of high growth were:

  • Publications: AHIMA is a leading publisher of coding books and is increasing the market for educational programs. Publications revenue increased 23 percent overall in 2004
  • Examination revenue increased 25 percent for AHIMA's three coding-related exams (CCS, CCS-P, and CCA), while the RHIA and RHIT exams experienced modest growth compared to the prior year
  • Audio seminars continue to be a popular method of professional development for many AHIMA members and their staff, and these revenues increased 13 percent in 2004
  • AHIMA annual convention registrations increased 26 percent in 2004, bolstered by the International Federation of Health Record Organizations meeting in Washington,DC

Strong Performance Elsewhere

AHIMA continues to manage the expenses of producing products and services and of doing business. Expenses increased only 7 percent in 2004, less than the revenue growth. As a result, AHIMA saw improved profitability at the end of the year. Its net from operations (operating revenues minus operating expenses) was $297,000-an improvement of $107,000 over the prior year.

Meanwhile, investment returns for the association increased by 13 percent and improved bottom line results by $2,609,000. AHIMA has a diversified investment allocation policy with investments in both bonds and stocks. The profitability and solid investment results in 2004 combined for a net income (or bottom line) of $2.9 million. These results mean that AHIMA can continue to invest to build a strong future and ensure long-term viability for its members.

Strength in Numbers

In 2004, AHIMA membership grew, with an overall growth rate of 3.9 percent. At year end, AHIMA reached the mark of 50,000 members with a final year-end total of 50,094. Highlights included:

  • Active, associate, and new graduate categories grew 3.2 percent in 2004
  • Student members ended the year numbering 9,970, a 6.8 percent growth rate over 2003

Membership dues do not fully fund the cost of member benefits and services, which includes the rebates to CSAs. For 2004, the benefits cost $50 per member to deliver in excess of dues received. That cost is annually funded by non-dues revenue, investment earnings, and reserves or savings accumulated in prior years.

Reading the Annual Report

Each year, as a service to members, AHIMA and FORE publish brief summaries to show how the Association performed financially. The report is typically published later in the following year so that it represents information reviewed and approved by AHIMA's financial auditors. Here's how to read it.

The report offers summaries of both revenues and expenses for 2004. Looking at the information over time can help determine trends in the way Association business gets done.

  • The "Combined Statements of Financial Position" compares 2004 and 2003 data regarding AHIMA's assets and liabilities.
  • The "Combined Statements of Activities" gives two years' worth of information summarizing revenues and expenses.


The Bottom Line

AHIMA has seen a return to profitability in the last two years, as compared to years when it operated at a financial loss to make new improvements in benefits and infrastructure.

  1998 1999 2000 2001 2002 2003 2004
($1,305,000) ($2,753,000) ($2,294,000) ($1,542,000) ($661,000) $190,000 $297,000

Combined Statements of Financial Position

American Health Information Management Association
Foundation of Research and Education in Health Information Management
Years Ended December 31, 2004 and 2003
    2004   2003

Cash and cash equivalents $3,676,672    $3,104,132   
    Program activities (net of allowance
    of $266,738 and $178,036)
Inventories 203,586    148,664   
Prepaid expenses and other assets 429,986    271,950   
Notes receivable 37,839    43,933   
Investments 22,553,810    19,311,266    
Property and equipment 1,138,955    1,220,514   
  $28,911,592    $25,048,052   
Liabilities and Net Assets    
    Accounts payable
    Accrued expenses
    Deferred revenue
    Deferred rent
  $7,045,612    $6,089,776   
Net assets
    Board designated-fundraising
  $21,136,993    $18,244,410   
Temporarily restricted
  $619,735    $620,284   
Permanently restricted
109,252    93,582   
  21,865,980    18,958,276   
  $28,911,592    $25,048,052   

Combined Statements of Activities

American Health Information Management Association
Foundation of Research and Education in Health Information Management
Years Ended December 31, 2004 and 2003
    2004   2003

Revenue and other support    
  FORE $370,856    $529,601   
  Member services4,270,768    4,087,364   
  Publications 3,004,107    2,432,878   
  Meetings 2,827,003    2,957,015   
  Continuing education and training 3,288,275    3,042,507   
  Marketing and sales/business development 143,924    106,167   
  HIM profession 277,680    275,974   
  Communication services 977,745    1,025,180   
  Certification services 3,518,745    2,838,346   
  Governance/volunteer development 9,450    10,066   
  Business services 1,228    450   
  $18,689,781    $17,305,548   
  FORE $765,112    $831,059   
  Member services    562,209    573,551   
  Publications 1,727,773    1,398,375   
  Meetings 1,650,183    1,880,634   
  Continuing education and training 1,384,775    1,197,950   
  Marketing and sales/business development 1,656,543    1,614,462   
  HIM profession 2,539,842    2,200,296   
  Communication services 1,538,423    1,558,220   
  Certification services 1,242,048    1,154,315   
  Governance/volunteer development 4,300,209    3,765,087   
  Business services 1,024,702    941,236   
  $18,391,819    $17,115,185   
Revenue and other support over (under) expenses 297,962    190,363   
Other revenue    
  Interest, dividends and investment fees 474,085    353,141   
  Realized gain/(loss) 1,201,866    44,855   
  Unrealized gain/(loss) 933,791    3,372,883   
  $2,609,742    $3,770,879   
Increase (decrease) in net assets 2,907,704    3,961,242   
Net assets    
  Beginning of year 18,958,276    14,997,034   
  End of year $21,865,980    $18,958,276   

Source: AHIMA Advantage 9:5 (August 2005)