Thursday, October 10, 2013

Massachusetts Non-Profit Hospitals Net Assets Up 28% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 11 Non-Profit Hospital Organizations headquartered in the State of Massachusetts with Net Assets at the most recent date reported of more than $400 mil each.  Below here are the Net Assets of these 11 at both the most recent reported date and also at the beginning of the Obama Administration:






2008 2008 Obama




Most
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









Partners Healthcare System Boston MA Jun 13     5,859
Sep 09     4,975 18%
Children's Medical Center Boston Boston MA Jun 13     3,277
Sep 09     2,516 30%
CareGroup Healthcare System Boston MA Jun 13     1,453
Sep 09        978 49%
Dana-Farber Cancer Institute Boston MA Jun 13     1,130
Sep 09        836 35%
Boston Medical Center Boston MA Jun 13     1,031
Sep 09     1,026 0%
UMass Memorial HealthCare Worchester MA Jun 13        675
Sep 09        545 24%
SouthCoast Health System New Medford MA Jun 13        648
Sep 09        485 34%
Lahey Clinic Medical Center Burlington MA Jun 13        593
Sep 09        357 66%
Baystate Medical Center Springfield MA Jun 13        555
Sep 09        361 54%
Cape Cod Healthcare Hyannis MA Jun 13        465
Sep 09        288 61%
Covenant Health Systems Lexington MA Mar 13        406
Dec 08        242 68%









Total all 11


   16,092

   12,609 28%


As you can see from the above chart, the Total Net Assets of these 11 Massachusetts Non-Profit Hospital Organizations increased by 28% for an average 3.80 years during the Obama Administration.

So a 28% growth in Net Assets is bad news.....right?  Well, actually I think it's good news.  It shows that these Massachusetts Non-Profit Hospital Organizations aren't being excessively greedy in what they charge hospital patients.  And it also shows that these Massachusetts Non-Profit Hospitals are being very efficient and effective in their health care delivery.  This is precisely how you bend down the Total US Health Care Cost Curve.

To illustrate the above points, the huge and very prestigious Partners HealthCare System generated Total Bottom Line Profit of $1.323 bil over the most recent 3.75 years, which was only 4.0% of Total Revenues over the same time span.

Just think how much total US health care costs would be removed if all Non-Profit Hospital Organizations generated Bottom Line Profits which were only 4.0% of Total Revenues!

But it wasn't just Partners HealthCare System.  CareGroup Healthcare System generated Total Bottom Line Profits of $426 mil in the most recent 3.75 years, which was a reasonable 4.8% of its Total Revenues.  And Dana-Farber Cancer Institute generated Total Bottom Line Profits of $78 mil in the most recent 3.75 years, which was a very reasonable 2.2% of its Total Revenues.

And lastly, I do find it interesting that Children's Medical Center Boston generated Total Bottom Line Profit of $680 mil over the most recent 3.75 years, which was 13.3% of its Total Revenues, precisely half of  Children's HealthCare Atlanta's comparable 26.6%.  But then I think both of these Profit Margin Percentages are much too high for a Non-Profit Hospital Organization.