Tuesday, October 8, 2013

Alabama Non-Profit Hospitals Net Assets Up 52% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found two Non-Profit Hospital Organizations headquartered in the State of Alabama with Net Assets at the most recent date reported of more than $400 mil each.  Below here are the Net Assets of these two at both the most recent reported date and at the beginning of the Obama Administration:

2008 2008 Obama

or or ACA

Most Recent
2009 2009 and

Recent Balance
FYE Balance US Fed

Balance Sheet
Balance Sheet Bump
City State Sheet Net
Sheet Net %
Hospital Organization HQs HQs Date Assets
Date Assets Change

mil $s

mil $s

UAB Health System Birmingham AL Jun 13      974
Sep 09      744 31%
Children's Hospital Alabama Birmingham AL  Jun 13       795
Dec 08      418 90%

Total of both


   1,162 52%

As you can see from the above chart, the Total Net Assets of these two Alabama Non-Profit Hospital Organizations increased by a robust 52% during the Obama Administration.

University of Alabama at Birmingham Hospital generated Total Bottom Line Profits (Excess of Revenues over Expenses) of $376 mil in the three years through September 2012, which was an extremely high 11.3% of its Total Revenues over the same time period.  This 11.3% Bottom Line Profit Margin is much higher than the 9.6% Combined Bottom Line Profit Margin of the 30 prestigious Dow Industrial companies.  

Very positively impacting this major increase in the Net Assets (Financial Strength) of these hospitals were actions taken by both the Obama Administration and the US Fed to strengthen the US Financial Foundation which was severely damaged from the financial meltdown in late 2008.

In addition, the Affordable Care Act (ACA) has also played a key role in this increase in Net Assets (Financial Strength) of these Non-Profit Hospital Organizations.

A remarkable thing is that these robust increases in Net Assets of these Non-Profit Hospital Organizations occurred when these Non-Profit Hospitals were also able to substantially bend down the Total US Health Care Cost Curve in each of the most recent three years.

With future Non-Profit Hospital Organizations' Hospital Operating Income being bolstered by both many of the Uninsured getting insurance and by the many of the Underinsured getting much better insurance, both under the ACA,  future Net Asset growth of these Non-Profit Hospital Organizations should be very robust.  And for States electing to expand Medicaid, this future Net Asset growth will be exceptionally robust.