Saturday, October 12, 2013

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.