These 8 Hospital and Health Services Corp generated Total Adjusted Earnings growth of 5% in the 2Q 2013 over the 2Q 2012. And the two hospitals with steep declines in earnings.....Community Health Systems and Health Management Associates.....are merging and my hunch is that they will do much better in the future on a combined basis.
And when I study the Non-Profit Hospitals, what I continue to see are substantial increases in Net Assets pretty much across the board.
The Affordable Care Act has been extremely helpful to hospitals. Granted, the US States refusing to expand Medicaid will hurt many of the hospitals in their States financially, but this will be substantially more than offset by the prescient States electing to expand Medicaid. Thus, on a national basis, hospitals will continue to be financially buttressed by the Affordable Care Act.
Below here are the earnings of these 8 US Hospital and Health Services Corps for the 2Q 2013 and for the comparable 2Q 2012:
|2Q 2013||2Q 2012|
|mil $s||mil $s||Amount||%|
|Hospital and Health Services|
|Davita Health Partners||197||147||50||34%|
|Universal Health Services||114||104||10||10%|
|Community Health Systems||30||83||(53)||-64%|
|Health Management Associates||19||54||(35)||-65%|
|Total all 8||971||924||47||5%|