PDAIS
COMMITMENT
• PDAIS completed its sixth year managing the PDA Endorsed programs, which
experienced a 30% decrease in royalty revenue. The total revenue in 2015 was
$134,161 vs. $174,940 in 2014. This is due to the poor fourth quarter of the
Bank of America Practice Solutions; the discontinuance of the BofA credit card
program for 2015. However, we were able to replace the credit card program
with the ADA program.
• PDAIS continued to provide non-dues revenue to PDA and local dental societies,
totaling $125,456.11, for a 16-year total of $2,808,665.
• PDAIS sponsored and attended 53 CE programs and study clubs throughout the
commonwealth and 7 programs in New Jersey.
• PDAIS continues to perform significant marketing campaigns in the attempt to
increase sales and education of PDA and NJDA dentists.
• The PDAIS Benefits department is providing assistance to PDA members during
this monumental change in the Health insurance environment.
• PDAIS’ financial support was able to contribute to the success of PDA’s New
Dentist and Student Outreach Programs and continued its financial support of the
PDA Annual Meeting again this year.
FINANCIAL STATEMENTS
PDAIS - As indicated on the financial statements (page 35), in 2015 we
experienced a decrease in overall gross revenue of -31.4%. The decrease is
due to the dissolving of our 21 county association health plan and moving all
clients either to individual plans or group plans direct with carriers. However,
we were able to decrease expenses by $358,452 (20.8%). This results in a
net loss of ($205,913). Also, remember that $125,456 of the PDA marketing
fee and local royalty dollars would be considered as a return of profit in net
income in a standard insurance agency mode, which would bring a net
income loss of ($80,457).
Bell Agency - As indicated on the financial statements (page 36), Bell
experienced an increase in overall gross revenue of 8.0%. There was a decrease
in expenses of 5.2%. We ended the year with $651,276 in net income.
THREAT
In 2015 PDAIS experienced the full impact of the Affordable Care Act, as
reflected on our decrease in revenue, due to the dissolution of our 21 County
Association health insurance program. Our short-term threat is maintaining a
balanced cash flow until the debt is paid. We currently have a strong income
statement, but until we pay off the debt we will need to stay disciplined in
managing our operations.
OUTLOOK
As the health care industry still remains uncertain, we believe the worst is
behind us. Our focus is to grow the combined agencies in every facet of the
business, but we are currently focusing on growing the property and casualty
business. With the new processes that we have implemented, along with the
Bell agency acquisition, we are positioned for positive growth in the future.
39