Financial Forecast

AMA Operations:

Projected Actual ($ 000’s) Budget ($ 000’s) Variance ($ 000’s)
Revenue
- Dues 16,931 16,931
- Other 3,435 3,435
Total revenue 20,366 20,366
Operating Expenditures
- Executive Office 5,417 5,417
- Southern Alberta Office 801 801
- Corporate Affairs 6,396 6,396
- Public Affairs 2,165 2,165
- Health Economics 2,424 2,424
- Professional Affairs 1,183 1,183
- Priority Projects 1,975 1,975
20,361 20,361
Transfer to Reserves 5 5

1. At the mid-point of the year, no significant operating variances are forecast.

2. The number of new physicians is below historic levels. However, this was anticipated and we expect to still reach the forecast budget.

3. Operating expenditures are primarily comprised of workforce (staff and physician representatives) and facility costs. Actual expenditures in these areas are expected to closely match the budget.

4. Spending on Priority Projects, which includes implementation of the governance review recommendations, the insight and engagement project, representation of AHS contracted physicians under the Strategic Agreement and IMIT strategies, is expected to be on budget overall. However, the steps taken on some of these projects may be dependent on the outcome of negotiations.

Board Reserves

Projected Actual ($ 000’s) Budget ($ 000’s) Variance ($ 000’s)
Emergency 9,078 9,078
Capital 3,604 3,604
Strategic 1,000 1,000
13,682 13,682

AMA Contingency Reserve

Projected Actual ($ 000’s) Budget ($ 000’s) Variance ($ 000’s)
Opening balance 10,538 11,801 (1,263)
Net income 472 472
Operating surplus 5 5
Negotiations (1,000) (1,000)
Health System Change (150) (150)
Strategic Agreement (200) (200)
Income Equity (800) (800)
Representation (300) (300)
PCN Provincial Framework (700) (700)
7,865 9,128 (1,263)

AMA Agreement

Projected Actual ($ 000’s) Budget ($ 000’s) Variance ($ 000’s)
Opening balance 2,416 2,700 (284)
Net income 40 40
Other Agreement implementation activity (200) (280) 80
Section grants (298) (298)
System Integration  (577) (777) 200
1,381 1,385 (4)

1. Board Reserves – This is the minimum reserve holdings established by the board for the specified purposes. The board reserves are currently funded at required levels.

2. AMA Contingency Reserve – The opening balance includes the market value of the building, which has been reduced by $1 million to recognize the estimated future tax cost if the building was sold. Actual spending on each of the listed projects will be affected by the outcome of negotiations. It is likely that not all provisions will be spent; however, given the uncertainty we are not forecasting any variances at this time.

3. AMA Agreement – These one-time funds were provided through the AMA Agreement and are used to support physicians’ involved in agreement related implementation activity. Some activity has been delayed as a result of negotiations which will generate some one-time savings.

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