How Revenue is Spent at the American Board of Internal Medicine (ABIM) 2023
The American Board of Internal Medicine (ABIM) is a physician-led independent evaluation organization to certify internists and the 20 subspecialties (i.e. infectious disease, cardiovascular, hematology, oncology, etc). A non-profit, 501 (c) 3, ABIM estimates the organization certifies about 200,000 physicians or about 1 in 4 physicians in the US. ABIM is one of 24 medical specialty boards that make up the American Board of Medical Specialties (ABMS).
As such, ABIM predictably derives most revenue from certification – both certification to establish initial competence and “maintenance of certification” to ensure ongoing competence.
Key financial facts about ABIM in 2023 include the following:
- Total revenue was $90 million (compared to $72 million in 2022 with the increase primarily attributable to increased “maintenance of certification” fees).
- Most revenue derived from maintenance of certification ($50 million) and certification ($37 million).
- The average certification/maintenance of certification was $435 ($87 million/200,000).
- Expenses totaled $63 million categorized as follows: compensation ($35 million or 39% of revenue), certifying and moc exams ($12 million or 13% of revenue), fees for outside vendors ($8 million or 9% of revenue), office-related expenses ($7 million or 8% of revenue), and travel and conferences ($1 million pr 1% of revenue).
- Fees for outside vendors ($8 million) were primarily for program services which means for certification services. ABIM reports paying 20 independent contractors more than $100,000. The 5 most highly compensated independent contractors received $3.6 million and were compensated for employment, legal, IT recruiting, and software services, which means there are 15 other independent contractors that were compensated more than $100,000 but less than $401,780 (the 5th most highly compensated independent contractor). $8 million less $3.6 million is $4.4 million. And, $4.4 million/15 independent contractors means an average compensation of about $300,000 to the remaining independent contractors.
- At the beginning of the year, ABIM had a negative $6 million in net assets so they were digging out of a hole. ABIM spent $27 million less than the organization raised putting the organization back in the green with $21 million in net assets at year-end.
Using the above information, every $100 in revenue, or every $100 a physician paid for certification or maintenance of certification was spent as follows:
$100: Revenue
-$ 39: Compensation
-$ 13: Certifying and Moc Exams
-$ 9: Fees for Outside Vendors (primarily for certification and maintenance of certification programs)
-$ 8: Office-Related Expenses
-$ 1: Travel and Conferences
-$ 70: Total Expenses
$ 30: Unspent Revenue: To General Fund
As illustrated above, ABIM spent $70 out of every $100 (or $63 million out of the $90 million) with the largest expense reported to be compensation for the organization’s employees.
283 employees received $39 million in compensation, an average of $138,000. 87 employees received more than $100,000 with the most highly compensated reported to be Richard Baron, the President and CEO who received $1,385,563.
To read the IRS Form 990 (2022 for the year ending June 30, 2023, click here.
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