As Treasurer, I have learned that the simple rules of economics affect not only our medical practices, but they also have an impact on service organizations like The American Association of Neurological Surgeons (AANS). As requests for services from our membership rise, so do expenses. Just like in our individual practices, the AANS must play a game of shifting priorities, adjustments, and systems reviews to try and keep revenues in line with the increasing expenses.
Dues are not cheap, but over the past few years they have been increased only at the rate of the cost of living. Still, they only account for 16 percent of our revenue. To avoid large dues increases, we have developed new programs, such as our professional development courses, that not only bring advances in surgical techniques to our members but also help to fund further educational activities.
AANS of the Future
In spite of increasing expenses, we all want the AANS to be strong. We believe that in the years ahead, there will be an even greater need and expanded role for our Association. Envision the future and picture the AANS:
- Establishing more programs and communications with other specialties so that neurosurgeons will be recognized as “the surgeons” for spinal, peripheral nerve, vascular, and other disorders.
- Teaching new surgical techniques, in addition to our traditional educational efforts, so neurosurgeons will be trained in surgery and well-armed in the current market place.
- Developing outcome and guideline instruments to provide neurosurgeons with the tools they will need to meet the challenges of the next decade.
- Being a resource for all members to receive professional practice information as well as scientific and clinical material/information.
- Responding to numerous requests for the “opinion of neurosurgery” on various topics.
Embracing all the elements of this picture would require more financial resources than we currently possess.
The AANS is a service organization. Consequently, over the past three decades, it has launched numerous programs for the benefit of its members. However, it is time to review and prioritize these activities. Just as important, we must coordinate them to be sure we are not duplicating our efforts. Some of the programs now in existence may have to be placed on the back burner, or even eliminated, while new, or higher priority, areas are addressed.
Strategic Financial Plan
To be in a better position to accomplish these changes, we are enhancing our financial plan. Two years ago, the Board of Directors developed a new strategic plan and began to implement it. This year, with the invaluable assistance of Robert Draba, PhD, AANS Executive Director, and of Robert Cowan, CPA, AANS Controller, we are marrying the strategic program plan with a strategic financial plan. Simultaneously, we are initiating an innovative way to approach the budgeting process. It is important for us to develop a dynamic budget so that we can expand our programs to meet the needs of the future.
To help us do that, in our new budgeting process revenue goals as well as savings goals will be identified early. In addition, the AANS will build its reserves so that we are well positioned to meet the financial challenges of the future. Presently, those reserves are segregated (and invested separately) in our “board-designated fund.” In the months ahead, we will also develop two new designated funds: one for technological innovation, and a second to help us identify and obtain new sources of revenue:
Those of us who serve on the Board of Directors will, with the input of members, guide the AANS into the future. While we recognize that the AANS is an educational and a service organization, there is no question that the AANS is also a business. Our business is serving our members and the public.
The fuel that runs this organization is revenue. We are striving to maximize our resources to meet the current obligations of our members and of society, and to have enough financial resources to meet those needs in the future.