Saturday, October 12, 2013

South Carolina Non-Profit Hospitals Net Assets Up 35% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 6 Non-Profit Hospital Organizations headquartered in the State of South Carolina with Net Assets at the most recent date reported of more than $400 mil each.  Below here are the Net Assets of these 6 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

Greenville Hospital System Greenville SC Jun 13        968
Sep 09        802 21%
McLeod Health Florence SC Jun 13        864
Sep 09        533 62%
Palmetto Health Columbia SC Jun 13        807
Sep 09        593 36%
Lexington County Hlth Svcs District West Columbia SC Sep 12        607
Sep 09        454 34%
Spartanburg Regional Healthcare System Spartanburg SC Jun 13        551
Sep 09        487 13%
Self Regional Healthcare Greenwood SC Jun 13        498
Sep 09        305 63%

Total all 6


    3,174 35%

As you can see from the above chart, the Total Net Assets of these 6 South Carolina Non-Profit Hospital Organizations increased by 35% to $4.295 bil during the Obama Administration.

For the most recent 3.75 years, McLeod Health generated Total Bottom Line Profits of $310 mil, which was a very high 12.5% of its Total Revenues over the same time period.  This 12.5% Bottom Line Profit Margin exceeds that of all 30 Dow Industrial companies combined of 9.6% in the most recent year.  Is this right?  Not even close to being right.

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.