New Jersey Non-Profit Hospitals Net Assets Up 137% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 7 Non-Profit Hospital Organizations headquartered in the State of New Jersey with Net Assets at the most recent date reported of more than $400 mil each.  Below here are the Net Assets of these 7 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
Virtua Health	Marlton	NJ	Jun 13	1,035		Dec 08	566	83%
AHS (Atlantic Health System) Hospital	Morristown	NJ	Jun 13	966		Dec 08	510	89%
Robert Wood Johnson Univ Hospital	New Brunswick	NJ	Jun 13	765		Dec 08	457	67%
Meridian Hospitals	Red Bank	NJ	Jun 13	757		Dec 08	339	123%
Hackensack University Medical Center	Hackensack	NJ	Jun 13	593		Dec 08	297	100%
Barnabus Health	West Orange	NJ	Jun 13	515		Dec 08	(290)	278%
AtlantiCare Regional Medical Center	Galloway	NJ	Jun 13	435		Dec 08	262	66%
Total all 7				5,066			2,141	137%

As you can see from the above chart, the Total Net Assets of these 7 New Jersey Non-Profit Hospital Organizations increased by an exceptional 137% to $5.066 bil during the Obama Administration.

In the most recent 4.5 years, Virtua Health generated $276 mil of Total Non-Operating Investment Income, which comprised a huge 49% of its Total Bottom Line Profits (Excess of Revenues over Expenses) of $560 bil.

This Virtua Health's Total Bottom Line Profit of $560 mil was a high 11.8% of its Total Revenues over the same time span.  This 11.8% Profit Margin exceeds that generated by more than half of the 30 Dow Industrials companies.  Does that make any sense?  I don't think so.

For the most recent 4.5 years, Robert Wood Johnson University Hospital generated Total Bottom Line Profits of a $285 mil, which were a high 8.5% of its Total Revenues over the same time period.

For the most recent 4.5 years, Meridian Hospitals generated Total Bottom Line Profits of $315 mil, which were 5.6% of its Total Revenues over the same time period.

And lastly, for the most recent 4.5 years, AHS Hospital generated Total Bottom Line Profits, exclusive of economic gains from business combinations, of $235 mil, which were a very reasonable 4.0% 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.