Saturday, October 12, 2013

North Carolina Non-Profit Hospitals Net Assets Up 50% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found a large number of 15 Non-Profit Hospital Organizations headquartered in the State of North Carolina with Net Assets at the most recent date reported of more than $400 mil each.  Below here are the Net Assets of these 15 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









Carolinas Health Care System Charlotte NC  Jun 13      3,797
Dec 08     2,340 62%
Duke University Health System Durham NC Jun 13     2,586
Jun 09     1,392 86%
Novant Health Winston-Salem NC  Jun 13      2,297
Dec 08     1,557 48%
Cone Health Greensboro NC Jun 13     1,272
Sep 09        894 42%
University North Carolina Hospitals Chapel Hill NC Jun 13     1,241
Jun 09        911 36%
Mission Health System Asheville NC Jun 13     1,224
Sep 09        882 39%
North Carolina Baptist Hospital Winston-Salem NC Jun 13     1,027
Jun 09        715 44%
Vidant Health Greenville NC Jun 13        931
Sep 09        587 59%
WakeMed Health Raleigh NC Jun 13        890
Sep 09        719 24%
Wake Forest Univ Health Sciences  Winston-Salem NC Jun 13        656
Jun 09        510 29%
CaroMont Health Gastonia NC Mar 13        621
Jun 09        386 61%
First Health of the Carolinas Pinehurst NC Jun 13        616
Sep 09        458 34%
New Hanover Wilmington NC Jun 13        579
Sep 09        450 29%
Rex Healthcare Raleigh NC Jun 13        478
Jun 09        297 61%
Cape Fear Valley Health System Fayetteville NC Jun 13        408
Sep 09        315 30%









Total all 15


  18,623

  12,413 50%

As you can see from the above chart, the Total Net Assets of these 15 North Carolina Non-Profit Hospital Organizations increased by a very robust 50% to $18.623 bil during the Obama Administration.  North Carolina citizens should be very pleased with the strong fiscal performance of their fine Non-Profit Hospital Organizations during the Obama Administration.

In the four annual years 2009 through 2012, Charlotte-based Carolinas HealthCare System's Primary Enterprise generated Total Bottom Line Profit (Excess of Revenues over Expenses) of $1.167 bil, which was a high 8.4% of its Total Revenues over the same time span.

In the most recent four years, Durham-based Duke University Health Systems generated $1.013 bil of Total Non-Operating Investment Income, which comprised a huge 57% of its Total Bottom Line Profits (Excess of Revenues over Expenses) of $1.778 bil.

This Duke Health's Total Bottom Line Profit of $1.778 bil was a monstrous 18.9% of its Total Revenues over the same time span.   Even when I back out from Total Bottom Line Profits the $307 mil of Net Unrealized Gain on Investments Recharacterized as Trading in 2010, Adjusted Total Bottom Line Profits  of $1.471 bil was a huge 15.6% of its Total Revenues over the most recent four years.  Both of these Duke Health Total Bottom Line Profit Percentages exceed that generated by more than two-thirds of the 30 Dow Industrials companies.  Does that make any sense?  Absolutely no sense to me.  As one of many necessary steps here, US Government subsidies to Medical Colleges must be removed.  All they do is make already highly profitable University Hospitals even more so.

For the most recent four years, Chapel Hill based-University of North Carolina Hospitals generated Total Bottom Line Profits of $401 mil, which was a very high 9.1% of its Total Revenues over the same time period.  Like I said earlier, the US Government should remove all subsidies granted to Medical Colleges.

For the most recent 3.75 years, Asheville-based Mission Health System generated Total Bottom Line Profits of $327 mil, which was a very high 8.8% of its Total Revenues over the same time period.  As a comparison, the Combined Bottom Line Profit Margin of the 30 prestigious Dow Industrial companies was a not substantially higher 9.6%.

In the most recent 3.75 years, Greenville-based Vidant Health's Total Bottom Line Profit of $286 mil was 5.4% of its Total Revenues over the same time span.

In the most recent 4.5 years, Winston Salem-based Novant Health's Total Bottom Line Profit of $751 mil was 5.1% of its Total Revenues over the same time span.

In the most recent 3.75 years, Greensboro-based Cone Health's Total Bottom Line Profit of $173 mil was a reasonable 4.8% of its Total Revenues over the same time span.

And lastly, in the most recent three years, Winston Salem-based Wake Forest Baptist's Total Bottom Line Profit of $178 mil was a very fair 3.1% of its Total Revenues over the same time span.

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.