Thursday, October 10, 2013

Kentucky Non-Profit Hospitals Net Assets Up 71% 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 Kentucky 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

Baptist Healthcare System Louisville KY May 13     1,488
Aug 09     1,036 44%
Norton Health Care Louisville KY  Jun 13         784
Dec 08        399 96%
Saint Elizabeth Medical Center Edgewood KY  Jun 13         628
Dec 08        265 137%

Total all three


     1,700 71%

As you can see from the above chart, the Total Net Assets of these three Kentucky Non-Profit Hospital Organizations increased by a very impressive 71% during the Obama Administration.

For the most recent 3.75 years, Baptist Healthcare System generated Total Bottom Line Profits of $446 mil, which was a very high 7.4% of its Total Revenues over the same time period.  As a comparison, Kentucky's huge Health Insurance company Humana generated a Bottom Line Profit Margin of a substantially lower 3.1% in its most recent year.

And for the most recent 4.5 years, Norton Healthcare generated Total Bottom Line Profits of $236 mil, which was a very reasonable 3.5% of its Total Revenues over the same time period.

Very positively impacting this major increase in the Net Assets (Financial Strength) of all 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.