For decades, associations have relied on a business model in which membership dues and meetings-related revenue were the economic drivers of sustainability and growth. The Infusion Nurses Society (INS) adhered to and owes much of its success and financial health to that model. However, over the past several years, INS has witnessed and prepared for a change in this model that has been dictated by the changes in both the health care and association industries. An effective business model for today's association should include an overall vision, strategy, and rationale to bring value to the organization while meeting the needs of its members and constituents. Part of this strategy includes a focus on engagement and online learning in conjunction with traditional membership and face-to-face meetings. This new model is one that INS fully embraces.
As we indicated in our 2017 report, the transformational changes affecting the health care and association landscapes were not a one-time event. We anticipated that there would be challenges, both financially and operationally, in the immediate years ahead as we embarked on incorporating this new model into our business plan. Such was the case in 2018, as we experienced an operating loss of $602,181 (Figure).
REVENUES
Revenues either remained flat or fell across most business segments, with the biggest drop resulting from a decrease in attendance at our face-to-face meetings. This drop is a trend that has been building across the association setting, and one that we are contending with by developing and expanding our online educational programming. In addition, after an extensive review of our face-to-face offerings, we decided to discontinue the National Academy after the 2019 offering. While eliminating a long-standing program is never easy, we felt that by doing so we would be able to focus more of our energies on online learning opportunities and revitalizing our Annual Meeting.
Revenues also dipped in the publications and educational resources category. This includes both print and electronic versions of INS resources as well as advertising sales for the Journal of Infusion Nursing. A goal was set in early 2018 to review existing resources to ensure that they continue to meet the needs of our members and constituents. Where applicable, we began revising resources that needed updating and worked on the development of new ones. A much-needed revision of the Clinical Competencies Validation Program was completed in 2018, and 2 new additions to our Policies and Procedures for Infusion Therapy series (Ambulatory Infusion Centers and Home Infusion) began. These additions will be available by the end of 2019, along with the much-anticipated Fundamentals of Infusion Therapy program.
Membership revenues remained steady compared to 2018. In addition to individual memberships, we continue to offer corporate memberships to organizations that are strong proponents of the value that an INS membership brings. We can customize our membership offerings to best serve the organizations looking to support the educational and informational needs of their clinicians; interest in this program continues to grow.
Revenues generated from infusion education services, which include the INS LEARNING CENTER, reflect the increased interest in online learning. We expanded our offerings in 2018 by supporting 1 new webinar and 2 new podcasts each month. As a result, participation in these resources, which are free to INS members, increased dramatically. Revenue increased in our virtual infusion education offerings as well as the number of CRNI(R)s using the INS LEARNING CENTER as a means to recertify.
EXPENSES
Two large but necessary expenses occurred in 2018. With our lease at INS headquarters due to expire at the end of 2018, we began the search for a space that would better fit our needs. The new space would require a smaller footprint, an open and collaborative concept, and technology for on-site and remote staff. Once this space was identified, negotiations with our current and future landlords enabled us to decrease our rental outlay for the remainder of 2018 and will afford us significant savings in 2019 and beyond. However, there were one-time costs associated with the move in the form of new furniture, computers, and technology that impacted our expenses in 2018.
Our ability to successfully implement a new business model requires a keen focus on technology and the information that can be generated from it. Data provided by a robust association management software program will enable us to better communicate with our members and constituents and provide them with better information and resources. The cost to evaluate, test, and implement this type of software is substantial but critical to our ongoing success. Large cash outlays such as these are necessary and important components to long-term effectiveness.
While operating expenses increased by approximately $100,000 in 2018, we reduced general and administrative expenses by $180,000. With the office move concluded, our new software scheduled for implementation later this year, and a continued focus on the reduction of overall expenses, we are committed to a further decrease in expenses for 2019.
An independent accounting firm audited INS' financial statements for the year ending December 31, 2018, in accordance with auditing standards. In its opinion, the financial statements present fairly, in all material respects, the financial position of INS.