Thursday, October 10, 2013

Louisiana Non-Profit Hospitals Net Assets Up 47% 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 Louisiana 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

Franciscan Missionaries Our Lady Health Baton Rouge LA Jun 13     1,254
Jun 09        830 51%
Willis-Knighton Medical Center Shreveport LA Sep 12        580
Sep 09        430 35%
Oschner Health System Jefferson LA  Jun 13         491
Dec 08        321 53%

Total all three


     1,581 47%

As you can see from the above chart, the Total Net Assets of these three Louisiana Non-Profit Hospital Organizations increased by a robust 47% during the Obama Administration.

For the most recent four years, Franciscan Missionaries Our Lady Health generated Total Bottom Line Profits of $477 mil, which was a very high 9.1% of its Total Revenues over the same time period.  This 9.1% Bottom Line Profit Margin is a little bit below the 9.6% Combined Bottom Line Profit Margin of the 30 prestigious Dow Industrial companies.  Yeah, this is crazy for a Non-Profit Organization to do nearly as well on the profit front as the very best US companies in the private sector.

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.