I found 25 Catholic Hospital Organizations with Hospital Operating Revenues in excess of $1 bil each in the fiscal year ended (FYE) 2010.
These 25 Catholic Hospital Organizations had Total Operating Revenues of $97.4 bil and Total Hospital Operating Income of $2.8 bil in FYE 2010.
My best estimate is that these 25 Catholic Hospital Organizations comprise 9% of Total Operating Revenues of all Non-Profit Hospital Organizations, including Catholic and all other Non-Profit Hospital Organizations in the US.
Here are the Annual Total Operating Earnings % Increases over the Prior Year of these 25 Catholic Hospital Organizations during the Obama Administration:
Annual FYE 2009………….............+19%
Annual FYE 2010………….............+27%
Fiscal Year to date March 2011….+14%
And here are the Total Operating Margin Percentages (i.e. Operating Income / Total Operating Revenues) for these Catholic Hospitals from 2008 to March 2011:
Annual FYE 2008……….....2.08%
Annual FYE 2009……….....2.34%
Annual FYE 2010……….....2.82%
Year to date March 2011...3.08%
Now that is what I call solid, very consistent earnings and profit margin percentage increases. This is particularly impressive given the horrible unemployment and underemployment prevailing during these periods, with the resultant increases in the number of uninsured and underinsured.
Below are the individual hospital organization Operating Earnings in Annual FYE 2010 and in FYE 2009.
....................................................FYE 2010.....FYE 2009
................................................... Operating......Operating
.........................................State.....Income.........Income
..Hospital Organization......HQs.......(Loss)...........(Loss)
.....................................................(in millions of dollars)
Ascension Health................MO........569..............363
Catholic Health Initiatives...CO.........356..............150
Providence Health..............WA........330..............323
Catholic Healthcare West.....CA........227..............261
St Joseph Health System......CA........167...............74
Trinity Health......................MI........162..............210
SSM Health Care..................MO........135..............147
Marian Health System..........OK........127...............73
Franciscan Alliance.............IN.........122..............115
Saint Francis Health Syst......OK........106...............65
Catholic Health Partners......OH........102...............84
Bon Secours Health Syst......MD........102...............78
Catholic Health Long Island.NY........100...............66
Sisters of Mercy Health Sys..MO..........71...............27
Ministry Health Care............WI..........62................45
Via Christi Health.................KS..........46................47
Christus Health....................TX..........42...............(33)
Hospital Sisters Services.......IL..........33................47
Wheaton Franciscan Health.WI..........19..................5
Catholic Health East.............PA..........13................(5)
Provena Health.....................IL............7................(8)
PeaceHealth........................WA..........(4)..............(18)
OSF Healthcare.....................IL..........(25)................6
Daughters of Charity Health..CA.........(49)................1
Sisters Charity Leavenworth.KS.........(70)..............40
Total 25 Hospitals...........................2,750...........2,163...+27%
Embedded as charges in the above FYE 2010 Total Operating Income of $2,750 mil were Total Bad Debt Expenses of a massive $5,638 mil.
In addition, Total Charity Care Costs, which includes both traditional charity care and the unpaid cost of Medicaid, both computed on a cost basis, were estimated to be another $5,060 mil for FYE 2010, based on what was disclosed in these companies’ footnotes.
With the Affordable Health Care Plan, many of the presently uninsured will get insurance, starting in 2014. Likewise, many of the presently underinsured will get better insured, again starting in 2014.
With their very hefty amounts of Bad Debt Expense and unrecorded Charity Care Income, Catholic Hospitals should be huge beneficiaries of the Affordable Health Care Plan.
It is difficult to estimate precisely how much Bad Debt Expense will be eliminated, as well as precisely how much unrecorded Charity Care Income will be picked up as part of the Affordable Health Care Plan, once it fully kicks in.
But just as a perspective, let me assume that 60% of the Bad Debt Expense will be eliminated, and that 40% of the Charity Care Cost will be added to Revenues. Under these assumptions, and ignoring the Hospital Buy-in Costs that are part of the Affordable Health Care Plan, these Catholic Hospital Organizations' Reported Total Operating Income of $2,750 mil in FYE 2010 would nearly triple to $8,157 mil, computed as follows:
FYE 2010 Total Operating Income,
.....as reported…………………………..................................$2,750 mil
2010 Reported Bad Debt Expense of $5,638 mil X 60%.$3,383 mil
2010 Charity Care Costs of $5,060 mil X 40%...............$2,024 mil
= FYE 2010 Pro-forma Total Operating Income,
.....as adjusted for the above two items……....................$8,157 mil
Here are the 21 Catholic Hospital Organizations which had positive Operating Income as a % of Operating Revenues in FYE 2010:
1. Saint Francis Health System.....11.22%
2. Ministry Health Care..................5.51%
3. Franciscan Alliance...................5.28%
4. Catholic Health Long Island.......5.03%
5. Via Christi Health.......................4.56%
6. SSM Health Care.........................4.49%
7. Marian Health System................4.15%
8. Providence Health......................4.08%
9. Catholic Health Initiatives..........3.92%
10. St Joseph Health System...........3.91%
11. Ascension Health......................3.85%
12. Bon Secours Health System.......3.31%
13. Catholic Health Partners...........2.43%
14. Trinity Health...........................2.31%
15. Catholic Healthcare West..........2.30%
16. Hospital Sisters Services...........1.81%
17. Sisters of Mercy Health System.1.79%
18. Christus Health.........................1.15%
19. Wheaton Franciscan Health......1.03%
20. Provena Health........................0.56%
21. Catholic Health East.................0.32%
The Catholic Hospital Organizations have to be very happy with how their finances have already been substantially strengthened by wise actions of the Obama Administration, of the Fed, and of the US Congress.
And they also have to be licking their chops for the substantial step up in Hospital Operating Earnings they will be receiving when the Affordable Health Care Plan totally kicks in.
