Missouri Non-Profit Hospitals Net Assets Up 80% 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 Missouri 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
Ascension Health	Edmundson	MO	Jun 13	17,131		Jun 09	8,275	107%
BJC Healthcare	St Louis	MO	Jun 13	4,542		Dec 08	2,705	68%
Mercy Health	Chesterfield	MO	Mar 13	3,179		Jun 09	2,118	50%
SSM HealthCare	St Louis	MO	Jun 13	1,642		Dec 08	933	76%
St Luke's Health System	Kansas City	MO	Jun 13	1,033		Dec 08	703	47%
Children's Mercy Hospitals	Kansas City	MO	Mar 13	944		Jun 09	668	41%
CoxHealth	Springfield	MO	Jun 13	628		Sep 09	456	38%
North Kansas City Hospital	Kansas City	MO	Jun 13	549		Jun 09	452	21%
Saint Francis Medical Center	Cape Girardeau	MO	Jun 13	454		Jun 09	274	66%
Heartland Regional Medical Center	St Joseph	MO	Jun 13	420		Jun 09	214	96%
St Anthony's Medical Center	St Louis	MO	Dec12	371		Jun 09	344	8%
Total all 11				30,893			17,142	80%

As you can see from the above chart, the Total Net Assets of these 11 Missouri Non-Profit Hospital Organizations increased by a very impressive 80% to $30.893 bil during the Obama Administration.

In its fiscal year ended (FYE) June 2009, the massive Ascension Health Alliance recorded a Total Non-Operating Investment Loss of $980 mil due to the financial meltdown in late 2008.  This $980 mil Investment Loss resulted in a Total Bottom Line Loss of $710 mil in FYE June 2009.

However, in the four years since then, Ascension Health generated Total Non-Operating Investment Income of $2.464 bil.  In addition, Ascension Health recorded economic gains related to the excess of the fair value of assets received over the fair value of liabilities assumed on business combinations totaling $2.348 bil in that same four years.

Exclusive of the above acquisition economic gains, Ascension Health generated Total Bottom Line Profits of a massive $4.572 bil in the most recent four years, which was a very high 7.5% of Total Revenues over the same time span.  As a comparison, the Combined Bottom Line Profit Margin of the 30 prestigious Dow Industrial companies was 9.6%.

Ascension Health's Total Non-Operating Investment Income of $2.464 bil over the most recent four years comprises 54% of its Total Bottom Line Profits exclusive of the above economic acquisition gains.

For the four annual years (2009 through 2012), BJC Healthcare generated Total Non-Operating Investment Income of $1.224 bil, which comprised a huge 70% of the Total Bottom Line Profits of $1.744 bil over the same time span.

And for those same four years, BJC Healthcare's Total Bottom Line Profits of $1.744 bil were a huge 12.2% of its Total Revenues over the same time period.  This 12.2% Profit Margin is higher than that of more than half of the pristine 30 Dow Industrial companies.  CEOs of many private companies must be shaking their heads as to how a Non-Profit Hospital Organization can possibly generate a Bottom Line Profit Percentage over the long run that is higher than that of more than half of the very best For-Profit companies.

We have all of these so-called Deficit Hawks in the US Congress and they see nothing wrong with shutting down the US Government and also imposing these massive across-the-board sequester cost cuts, both for the sake of Deficit Reduction, and at the same time they also see nothing wrong with so many US Non-Profit Hospital Organization generating Bottom Line Profit Margins far in excess of the country's very best companies in the private sector.  It clearly tells you why the US Congress as a whole now has an approval rating of only 5%.  

Now I'll turn to two other Catholic Non-Profit Hospital Organizations.

For the most recent four years, Mercy Health generated Total Bottom Line Profits of $699 mil, which was a high 6.0% of its Total Revenues over the same time period.

And for the most recent 4.5 years, SSM Healthcare generated Total Bottom Line Profits of $843 mil, which was a high 6.1% 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.