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.