Business Meeting Puts Focus on the Future

Mary Ann Porucznik

During the annual Business Meetings of the American Academy of Orthopaedic Surgeons and the American Association of Orthopaedic Surgeons (AAOS), the focus was on the future, with reports on finances, a new building, education initiatives, and the Orthopaedic Political Action Committee (PAC). The meeting concluded with the introduction of new officers.

According to Andrew N. Pollak, MD, AAOS treasurer, 2011 was “a mixed year.” Although operating income was positive for the ninth consecutive year and net assets also increased, these gains were partially offset by investment losses of $1.5 million. For 2012, indications are that the AAOS will continue to have positive operating income as well as significant investment gains, ranging from nearly 10 percent to 14 percent. Dr. Pollak pointed out that the long-term portfolio is doing better than either of the restricted funds.

Over the long-term, however, Dr. Pollak anticipated an uneven road, with more than $1.7 million in net losses predicted for 2013, followed by minimal gains in 2014 and 2015, and additional losses in 2016 and 2017.

He also provided background information on the new building, which will be constructed during the coming year, just two blocks south of the current building. The building will include a state-of-the-art Orthopaedic Learning Center (OLC) and will house more than 20 orthopaedic organizations. Three specialty societies—the American Association of Hip and Knee Surgeons, the Arthroscopy Association of North America, and the American Orthopaedic Society for Sports Medicine—will join the AAOS and the OLC as equity partners.

The estimated $49.2 million cost will be financed using a combination of contributions from the equity partners, debt, tax incremental financing through the Village of Rosemont, and value engineering.

Dr. Pollak stressed to the fellowship that the Board of Directors takes its fiduciary responsibilities seriously and has a continuing commitment to implementing operational efficiencies. He pointed to the various programs implemented over the past decade that add value to membership, including the Professional Compliance Program; the evidence-based practice, quality, and value initiatives; the American Joint Replacement Registry; and advocacy efforts.

“We are at the point of ‘cutting into bone’ if we continue to reduce or eliminate other programs,” said Dr. Pollak, “and as a result, last September, the Board approved the first dues increase since 2003.”

Keeping the focus on education
Edward Akelman, MD, chair of the Council on Education, provided a report on the Academy Education Enhancement Fund (AEEF), which has raised more than $540,000 from 291 donors, well on its way to achieving its goal of $1 million in principal funds by 2015. The AEEF was established to fund innovative education projects, such as the Annual Meeting Poster Enhancement Project, which brings together iPosters, author audio narratives, and interactive opportunities for those attending the Annual Meeting.

According to Ramon L. Jimenez, MD, president of the Orthopaedic Research and Education Foundation (OREF), the economic climate continues to be challenging, but OREF was able to achieve its 2012 goal of recruiting 200 new donors, for a total number of 2,053 donors. Dr. Jimenez also noted that the OREF has developed a comprehensive, strategic plan—Vision 2015—that includes a new research agenda, a new visual identity, and an increased commitment to community-building and collaboration.

Association meeting
During the Association meeting, AAOS President John R. Tongue, MD, called for nominations for the 2014 Nominating Committee. The Fellowship will have the opportunity to vote for members of the Nominating Committee later this year.

In his report on the Orthopaedic PAC, Stuart L. Weinstein, MD, focused on the need for orthopaedic surgeons to “be at the table. It has never been so important to have a voice in the healthcare debate,” said Dr. Weinstein. He pointed out that the PAC helps provide access and opportunity for orthopaedic surgeons to interact with legislators and build relationships; as a “pragmatic” PAC, he said, “the Orthopaedic PAC supports candidates from all parties who support our issues.”

Dr. Weinstein reviewed current priorities for the PAC, including the following:

Replacement of the Medicare Sustainable Growth Rate formula
Repeal of the Independent Payment Advisory Board
Preservation of in-office ancillary services
Medical liability reform
Antitrust reform
Clear, transparent, evidence-based audit rules by Medicare Audit Contractors and Recovery Audit Contractors

“You have two choices,” he told those in attendance. “You can sit around the locker room and complain, or you can take action by joining the PAC.”

New officers
The meeting concluded with the introduction of new officers and board members: Joshua J. Jacobs, MD, president; Frederick M. Azar, MD, first vice-president; David D. Teuscher, MD, second vice-president; Todd A. Milbrandt, MD, and Joseph A. Bosco III, MD, members-at-large; David A. Halsey, MD, Board of Specialty Societies secretary, and David Mansfield, MD, Board of Councilors secretary.

2013 Annual Meeting News
Tuesday through Friday, February 19 – 23, 2013.
http://www.aaos.org/news/acadnews/2013/AAOS6_3_22.asp