Report from the Treasurer
John Hatem, FHL7, MDA, MSc
Treasurer-Elect
Floyd Eisenberg, MD
Treasurer
As the pandemic-related health and economic disruption lessened its impact worldwide, HL7’s staff continued to effectively produce successful in-person meetings near the pre-pandemic numbers.
There were improvements in people, process, and technology in 2023 as HL7 hired their first Controller and established other changes in process and technology in the financial area. The establishment of new financial and operational workflows and the full implementation of the new accounting software also contributed to improved workflow and reports for both managers and the executive team.
Meetings
In 2023, HL7 held successful FHIR connectathons and working group meetings (WGMs) in January, May, and September.
Attendance at all WGMs was excellent (496, 619, 563, respectively). The FHIR Connectathons (318, 349, 339, respectively) numbers decreased from the previous year (596, 520, and 312, respectively) and returned to pre-pandemic attendance levels.
Figure 1. Attendance at WGM, FHIR Connectathons, and FHIR DevDays 2019-2023
The number of attendees at the 2023 FHIR DevDays was 542, which was down by fifty-eight from the 2022 Dev Days attendance. However, the FHIR Dev Days attendance is stable when comparing pre- and post- pandemic attendance numbers. The corresponding net revenue to HL7 in 2023 from Dev Days is lower (50k in 2023, 150k in 2022, respectively) but this was because of how income is recognized by HL7 when the event is held in Europe. Figure 1 provides a graphic view of attendance from 2019 to 2023. In 2023 all three WGMs and connectathons were produced in-person with a net income reflecting a loss of -$21k. In comparison, in 2022 two of the three WGMs were produced virtually, resulting in higher net income. Virtual WGMs result in increased net income to HL7, while in-person WGMs net income varies from breakeven net income to small gains or losses.
Education
Revenue from webinars decreased by $140k and certification testing revenue increased by $9k. Revenue from distance learning courses was $906k, reflecting a decrease of $220k, or – 19.5%, as compared to 2022. Figure 2 shows the education programming revenue trend from 2019 to 2023. It is early to jump to a firm conclusion, but distance learning remains higher than pre-pandemic levels and webinars and certification testing is stable compared to pre-pandemic levels. HL7 will continue to monitor educational revenue trends
Figure 2. Net revenue from education, webinars, training, certification testing, and distance learning
Membership
As compared to 2022, the total number of HL7 voting members in 2023 declined by 126, an 8.5% decrease.
However, the total membership revenues increased by $57k, or 1.9%, reflecting a shift to larger organizations paying more membership dues. The organizational membership revenues were $3.303M and individual membership revenues were $104K for the 2023 fiscal year.
Figure 3. HL7 membership 2019-2023
Organizational membership revenues have stabilized, while the slight decline in individual memberships continues. Figure 3 features the changes in the number of memberships from 2019 through 2023. Revenues from individual memberships are proportionally small relative to total membership revenues.
The Organization
HL7’s net income in 2023 reflected a net income loss of $ 1.263M as HL7 continued to invest in organizational changes related to people, processes, and technology.
Figure 4 depicts the pattern of expenses, revenue, and net income over the past five years. Our positive financial status continues to allow HL7 to enhance our leadership capabilities in health information technology standards development and implementation. Excluding funds related to FHIR accelerators and governmental grants, Figure 5 shows current HL7 reserves at 9.2 months. Our ability to rely on reserves allows HL7 to take steps to continue to implement our re-envisioning strategy and invest in new infrastructure and staff to help move the process forward. As HL7 invests in the future of the organization, we also maintain a stable financial reserve as we develop opportunities for new revenue streams. I am optimistic about HL7’s future.
Figure 4. HL7 financials over the past five years, showing revenues, expenses, and net income.
Figure 5. HL7 reserves shown in months of operating expenses available
For more detail about 2023, please read the full reports from our HL7 Divisions.
