Saturday, October 12, 2013

New Mexico Presbyterian Health Care Services Non-Profit Hospital Net Assets Up 117% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found only one Non-Profit Hospital Organization headquartered in the State of New Mexico with Net Assets at the most recent date reported of more than $400 mil.

Albuquerque-based Presbyterian Health Care Services' Net Assets have increased from $706 mil on December 31, 2009 to $1.529 bil at June 30, 2013, up a superb 117%.  For the most recent 4.5 years, it generated Total Bottom Line Profits of $845 mil, which was a very high 10.6% of its Total Revenues over the same time period.  This 10.6% Bottom Line Profit Margin exceeded the 9.6% Combined Bottom Line Profit Margin of the 30 prestigious Dow Industrial companies.

Very positively impacting this major increase in the Net Assets (Financial Strength) of this hospital 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.