Financial Forecast

AMA Operations:

Projected Actual ($ 000’s) Budget ($ 000’s) Projected Variance ($ 000’s)
Revenue
- Dues 18,801 18,801
- Other 4,084 4,084
Total revenue 22,885 22,885
Operating Expenditures
- Executive Office 6,273 6,223 (50)
- Southern Alberta Office 974 1,024 50
- Corporate Affairs 6,954 7,004 50
- Public Affairs 2,229 2,229
- Health Economics 2,476 2,476
- Professional Affairs 1,549 1,549
- Priority Projects 1,780 2,280 500
22,235 22,785 550
Transfer to Reserves 650 100 550

1. At the mid-point of the year, we expect to have an operating surplus of roughly $.5 million.

2. The number of new physicians is below historical levels but that was anticipated and we expect to reach the forecast dues budget.

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

4. Budget provisions were made under Priority Projects to advance in key areas including:

  • Representation capacity to support the AMA’s new representation mandates (e.g. AMSHP physicians, physician employees).
  • The AMA’s healthy work environments framework including areas of diversity and inclusion, leadership and Psycho-Social Wellness and Safety (physician wellness).
  • Physician consultation on AMA Agreement related activities (e.g. Physician Supply, Appropriateness)
  • Informatics (e.g. CPAR/CII, EMR vendor strategy, Connect Care)

We expect total spending in these areas to be less than budgeted because initial work focused on planning and we are optimistic that through new partnerships (e.g. CMA MOU) some of the financial burden can be shared.

Board Reserves

Projected Actual ($ 000’s) Budget ($ 000’s) Projected Variance ($ 000’s)
Emergency 9,641 9,641
Capital 3,504 3,504
Strategic 1,000 1,000
14,145 14,145

AMA Contingency Reserve

Projected Actual ($ 000’s) Budget ($ 000’s) Variance ($ 000’s)
Opening balance 11,667 9,287 2,380
Net income 372 372
Operating surplus 650 100 550
Negotiations (200) (200)
Income Equity (971) (971)
11,518 8,588 2,930

AMA Agreement

Projected Actual ($ 000’s) Budget ($ 000’s) Variance ($ 000’s)
Opening balance 1.673 1.600 73
Net income 24 24
Other Agreement implementation activity (195) (195)
Section grants (308) (308)
System Integration (743) (743)
451 378 73

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 – This is the reserve available to fund key activities that are cyclical or one-time in nature. In the current year, we expect to spend the budgeted withdrawal for negotiations and the income equity project. The opening balance includes the prior year’s operating surplus.

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.

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