Friday, October 11, 2013

Maine Non-Profit Hospitals Net Assets Up 19% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I only found one Non-Profit Hospital Organizations headquartered in the State of Maine with Net Assets at the most recent date reported of more than $400 mil.  Since the Net Assets reported were only for a very short .75 of one year, I extended this research and found one additional Maine Non-Profit Hospital Organization.  Below here are the Net Assets of these two 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

Eastern Maine Healthcare System Brewer ME Jun 13        550
Sep 12        511 8%
MaineGeneral Health Gardiner ME Jun 13        279
Jun 09        184 52%

Total of both


       695 19%

As you can see from the above chart, the Total Net Assets of these two Maine Non-Profit Hospital Organizations increased by 19%, which is pretty solid after considering that this increase was over a very short average period of 2.375 years.

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.