Saturday, October 12, 2013

North Dakota Non-Profit Hospitals Net Assets Up 14% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I could not find any Non-Profit Hospital Organizations headquartered in the State of North Dakota with Net Assets at the most recent date reported of more than $400 mil.  I did find two with Net Assets above $150 mil each.  Below here are the Net Assets of these two at both the most recent reported date and also at the beginning of the Obama Administration:

2008 2008 Obama

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

St. Alexius Medical Center Bismark ND Jun 13 162
Jun 10 139 17%
Altru Health System Grand Forks ND Dec12 188
Dec 10 167 13%

Total of both


306 14%

As you can see from the above chart, the Total Net Assets of these two North Dakota Non-Profit Hospital Organizations increased by 14% during the Obama Administration.  But that 14% Net Asset growth is very misleading since it is only over a very short average period of 2.5 years.

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.