Thursday, October 10, 2013

Iowa Non-Profit Hospitals Net Assets Up 55% Under Obama and the Affordable Care Act

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

UnityPoint Health Des Moines IA  Jun 13      2,071
Dec 08     1,067 94%
University Iowa Hospitals & Clinics Iowa City IA Jun 12     1,162
Jun 09        969 20%
Genesis Health System Davenport IA Jun 13        523
Jun 09        387 35%

Total all 3


     2,423 55%

As you can see from the above chart, the Total Net Assets of these 3 Iowa Non-Profit Hospital Organizations increased by a very robust 55% to $3.756 bil during the Obama Administration.

The very well run UnityPoint Health, previously called Iowa Health System, generated a $45 mil Bottom Line Loss in annual 2008, caused by an $85 mil Non-Operating Investment Loss due to the late 2008 financial meltdown.

So what has happened since?  Well, for the 4.5 years since, from the beginning of 2009 to June 30, 2013, UnityPoint Health generated a Total Bottom Line Profit of $842 mil.  Its Total Non-Operating Investment Income over that 4.5 years was $454 mil, a monstrous 54% of its Total Bottom Line Profits.  These spectacular Investment Returns were due to low interest rates and an extremely robust stock market.
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 even substantially more robust, especially for States choosing to expand Medicaid.