Content provided in partnership with

Health Care Industry

Fiscal year 2005 promises record revenues for AORN

AORN Journal, Feb, 2005 by Paula Graling

The AORN Board of Directors held a meeting Nov 4 to 6, 2004, during which Headquarters staff members presented an aggressive budget for fiscal year (FY) 2005. The budget reflects record milestones in revenues for AORN. The budget also projects continued growth from AORN entities. AORN is expected to show a profit in operations (ie, earnings before income from investments) and from its for-profit entities. The Board approved the FY 2005 budget at the meeting.

STATUS REPORT

AORN consists of four distinct entities:

* AORN, Inc;

* AORN Management Solutions (AMS);

* Association Technology Solutions (ATS); and

* the AORN Foundation.

Most Popular Articles in Health: Fuel your workout: exercisers who eat before they work out have more energy ...; Soothe a dry, itchy scalp: 5 easy expert solutions; Cocktails and calories: Beer, wine and liquor calories can really add up. ...; The sour truth about apple cider vinegar - evaluation of therapeutic use; The, six best supplements you've never heard of: these secret weapons can ...; More »

Although final budget figures for 2004 were not available at press time, AORN, Inc, is expected to have exceeded the aggressive revenue and earnings goals, which were established by the Board, of $18.5 million and $70,000, respectively. AORN's for-profit subsidiary, ATS, is on target to meet its earnings goal of $12,000, and the Association's for-profit subsidiary, AMS, is expected to exceed an earnings goal of $95,000. Although earnings do not measure the AORN Foundation's success, the Foundation is meeting set goals in terms of contributions, scholarship and grant awards, and the mission needs of AORN.

AORN, Inc. The performance of AORN, Inc, through October 2004 was positive. Revenues were $17.1 million, which is $151,000 above the budgeted figure. This increase is due to the success of the 2004 Congress and record growth in AORN Journal advertising sales and book sales. Through the first 10 months of 2004, operating income was very strong. Higher-than-expected revenue growth and strong management in controlling costs led to this budget surplus. By the end of 2004, revenues and operating income for AORN were expected to exceed what was budgeted. Exact figures will not be reported until auditors review the financial records, but it is expected that AORN's revenues and earnings at the end of 2004 will be its highest in many years.

AORN Management Solutions. AORN Management Solutions, which provides interim perioperative staffing and consulting services, is expected to have generated a record $1.4 million in revenues and an operating profit of $100,000 by year-end 2004. The AORN Board of Directors spun off AMS, formerly called AORN Opportunity, in July 2003, and the Association invested $100,000 to start up the subsidiary. AORN's initial $100,000 investment has a current book value of more than $350,000. In addition to the significant return on investment AMS has provided, it is a significant sponsor of AORN's manager seminars, manager manuals, and the manager newsletter and has provided funding for these products. Finally, AMS has used some of its earnings to contribute to the Foundation's scholarship and grant program.

Association Technology Solutions. During the first 10 months of 2004, ATS, an AORN subsidiary that is a primary reseller of iMIS association management software, generated revenues of $758,000, primarily from software sales and consulting fees. Association Technology Solutions generated software sales so successfully that they were among the top three in retail software sales for all iMIS resellers in the United States. Early in 2004, ATS won two awards, including the top-five reseller in the country and best reseller in the western region for customer service. The company now is managing AORN's information technology function. As a result, AORN is achieving cost savings and better service for members and Headquarters staff members.

The AORN Foundation. In the first 10 months of 2004, the AORN Foundation awarded more than $300,000 in scholarships and grants so members could attend Congress and the leadership conference. The Foundation received more than $270,000 in contributions to fund these scholarships and grants and has been helping AORN obtain funds from industry to help meet the needs of the managers' market.

2005 BUDGET

For the first time, AORN is expected to generate more than $20 million in revenues in 2005. The primary reasons for the expected increase in revenues include

* AORN's World Conference;

* more educational seminars;

* more book offerings;

* more online education; and

* research and development dollars used to create new products and services.

CONGRESS 2005

A full report of AORN's financial position will be provided during Congress 2005 in New Orleans. AORN had a great year in 2004, and trends for FY 2005 are positive. AORN's strong financial position will foster its ability to serve the needs of members and perioperative patients. Please feel free to contact me at (800) 755-2676 x 311 if you have questions.

PAULA GRALING

RN, MSN, CNOR

TREASURER

Health Care Industry

Fiscal year 2005 promises record revenues for AORN

AORN Journal, Feb, 2005 by Paula Graling

Find Research Guides for:

Find Featured Titles for: Reference

Most Popular Articles in Health

Most Popular Publications in Health