Business Plan and Budget

2020-21

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The following outlines the AMA plan for the 2020-21 business year (October 1, 2020 to September 30, 2021).

The plan was developed by senior staff with oversight and approval of the Board of Directors. With members and the AMA under significant threat, the plan focuses on the essential deliverables identified by the Board for the next two years, while continuing to support activities that forward the longer-term goals established by the Board. This year’s business plan also incorporates significant and direct savings and efficiencies so that available resources can be focused on these essential deliverables.

Context for the 2020-21 Planning

This past year has presented several unique challenges for the AMA, which have reverberated into planning for 2020-21. While the vision and mission remain fundamentally unchanged, the environment in which the AMA operates has substantially changed, which will affect the activities we undertake. Key changes in the environment include:

  • Threats to key mandates
    • Unilateral termination of the AMA Agreement
    • Elimination of some physician benefits and programs and threats to others
  • Alberta’s economic challenges
  • COVID 19
  • A new government
  • Threat to many fundamental aspects of the profession:
    • Physician compensation – government unilateral framework
    • Self-regulation – Discussion paper on changes to the Health Professions Act
    • Legislative changes to enable greater use of direct government contracting for insured services
    • New Prac ID regulations upcoming
    • Provincial Medical Staff Bylaws review

Business Plan and Budget Documents

The major business plan documents are as follows: (click to view)

A. Vision, Mission and Values

As established by the AMA Board of Directors

B. 2020 Essential Deliverables

With many challenges at play, the Board identified several essential deliverables for the AMA over the next two years:

  • Enhance support and representation on compensation matters
  • Member engagement & alignment
  • Maintain advocacy activities including the current public campaign and our legal case
  • Investment in government relations
  • Alliances with other key stakeholders
  • Maintenance of core capabilities
  • A financial strategy that balanced the use of contingency funds with efficiency savings
  • Physician compensation (including Income Equity)

Many of the essential deliverables also appear as activities under the Key Result Areas (Part C) but have been identified by the Board as the most critical deliverables over the next two years.

C. Key Result Areas, Goals and Activities (Ends)
Healthy AMA (Means)

Cascading from the AMA Mission are the Board-established goals for the organization, which are categorized in three broad Key Result Areas: Financial Health for physicians and their practices; Well Being (personal, workplace, community); System Leadership and Partnership. The purpose of the goals is twofold: they express how the Board wants to deliver value to physician members and also what is felt to be most important in moving towards the Vision. Connected to each goal are the related activities planned for the next twelve months. These are developed by staff with Board oversight. Progress on activities is reviewed and updated over the course of the year.

The above all has to do with ends: what are we doing to deliver value to members. To do this requires that we have the means at our disposal, which is captured under the phrase “Healthy AMA”. The second part of Attachment C deals with what is being done in this regard in the areas of governance, finances, knowledge, relationships and workforce.

Activity will continue towards achieving each of the AMA’s goals, however, as noted in section B, the focus for the year will remain on the essential deliverables identified by the Board and therefore, investment in other activities will be reduced.

D. 2020-21 Budget

The budget recognizes the challenging situation faced by members and the Association alike. With substantive changes to the AMA value proposition, we have planned for a significant reduction in membership of roughly 20% for the year. We have also increased spending to support the essential deliverables identified by the Board. The combination has resulted in a significant shortfall for the year and management, working with the Board, has implemented a number of efficiencies and savings to begin returning to a balanced budget. Roughly $3 million of direct savings were incorporated into the 2020/21 budget, including:

  • $.5 million – Minimum of 5% salary reduction for all staff and personal services contractors
  • $.5 million - Elimination of positions left vacant through attrition
  • $.3 million
    • 15% reduction in Board honoraria rates
    • 5% reduction in committee honoraria rates
  • $.4 million - Elimination or deferral of operational projects
  • $.7 million - Service savings in informatics, appropriateness, healthy work environments and physician leadership
  • $.6 million - Other savings including reduced travel, staff benefit changes, training and other operating cost reductions

Despite significant savings being incorporated, the budget includes a draw from the contingencies and reserves of $4 million for each of the next two years to support the essential elements, leaving a fully funded board reserve and an estimated $6.1 million in the contingency at the end of the two-year period.

We will be closely monitoring member renewal rates and adjusting our engagement strategy as needed. With the assistance of the Committee on Financial Audit, we will be prepared to make further spending adjustments to meet member needs as the year unfolds.

The AMA advances patient-centered, quality care by advocating for and supporting physician leadership and wellness.