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.