Pennsylvania Non-Profit Hospitals Net Assets Up 61% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found a large number of 16 Non-Profit Hospital Organizations headquartered in the State of Pennsylvania with Net Assets at the most recent date reported of more than $400 mil each.  Below here are the Net Assets of these 16 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
UPMC	Pittsburgh	PA	Jun 13	4,617		Jun 09	2,756	68%
Catholic Health East	Newtown Square	PA	Jun 13	3,631		Dec 08	1,978	84%
Children's Hospital Philadelphia	Philadelphia	PA	Mar 13	2,599		Jun 09	1,938	34%
Jefferson Health System	Radnor	PA	Mar 13	2,493		Jun 09	1,860	34%
Geisinger Health System	Danville	PA	Jun 13	2,044		Jun 09	901	127%
University Penn Health System	Philadelphia	PA	Jun 13	2,041		Jun 09	1,163	75%
Lehigh Valley Health Network	Allentown	PA	Jun 13	1,066		Jun 09	590	81%
Lancaster General Health	Lancaster	PA	Jun 13	942		Jun 09	622	51%
Reading Hospital	West Reading	PA	Jun 13	895		Jun 09	730	23%
Abington Health	Abington	PA	Jun 13	764		Jun 09	518	47%
Guthrie Health	Sayre	PA	Jun 13	624		Jun 09	375	66%
Pinnacle Health System	Harrisburg	PA	Jun 13	566		Jun 09	304	86%
Albert Einstein Healthcare Network	Philadelphia	PA	Jun 13	525		Jun 09	401	31%
WellSpan Health	York	PA	Mar 13	522		Jun 09	387	35%
St Luke's University Health Network	Bethlehem	PA	Jun 13	475		Jun 09	298	59%
Susquehanna Health System	Williamsport	PA	Jun 13	436		Jun 09	226	93%
Total all 16				24,240			15,047	61%

As you can see from the above chart, the Total Net Assets of these 16 Pennsylvania Non-Profit Hospital Organizations increased by a very robust 61% to $24.240 bil during the Obama Administration.

In the most recent four years, UPMC Pittsburgh generated $1.042 bil of Total Non-Operating Investment Income, which comprised a huge 63% of its Total Bottom Line Profits (Excess of Revenues over Expenses) of $1.664 bil over the same time period.

This UPMC Total Bottom Line Profit of $1.664 bil was a very reasonable 4.6% of its Total Revenues over the same time span.

In the most recent 4.5 years, Philadelphia-based Catholic Health East generated Total Bottom Line Profits exclusive of economic gains from business combinations of $1.480 bil, which was a high 8.4% of Total Revenues over the same time span.

In the most recent four years, Jefferson Health System generated Total Bottom Line Profits (Excess of Revenues over Expenses) of $684 mil, which was 6.0% of Total Revenues over the same time span.

In the most recent four years, Geisinger Health System generated $531 mil of Total Non-Operating Investment Income, which comprised a huge 48% of its Total Bottom Line Profits (Excess of Revenues over Expenses) of $1.098 bil over the same time period.

This Geisinger Health Total Bottom Line Profit of $1.098 bil was a very high 9.8% of its Total Revenues over the same time span.  This 9.8% Profit Margin puts Geisinger smack dab in the middle of the prestigious 30 Dow Industrial companies.  Is this right?  Not even close to being right.

For the most recent 3.75 years, Philadelphia-based Children's Hospital generated Total Bottom Line Profits of $719 mil, which was a high 10.4% of its Total Revenues over the same time period.  This 10.4% Bottom Line Profit Margin exceeded the 9.6% Combined Bottom Line Profit Margin of the 30 prestigious Dow Industrial companies.

For the most recent four years, University of Penn Health System generated Total Bottom Line Profits of a huge $1.232 bil, which was a high 9.4% of its Total Revenues over the same time period.  This 9.4% Bottom Line Profit Margin was just slightly short of the 9.6% Combined Bottom Line Profit Margin of the 30 prestigious Dow Industrial companies.

Lastly, for the most recent four years, Lehigh Valley Health generated Total Bottom Line Profits of a $323 mil, which was 5.6% 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.