| Higher | ||||||||||||
| (Lower) | ||||||||||||
| FYE | FYE | FYE | FYE | FYE | FYE | Profit | ||||||
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | Margins | ||||||
| Bottom | Bottom | Total | Total | Profit | Profit | 2012 | ||||||
| Line | Line | % | Operating | Operating | % | as % of | as % of | vs | ||||
| Profit | Profit | Increase | Revenues | Revenues | Increase | Revenues | Revenues | 2011 | ||||
| HQs | mil $s | mil $s | mil $s | mil $s | ||||||||
| FYE Dec 2012 vs 2011 | ||||||||||||
| Kaiser Permanente | CA | 2,596 | 2,013 | 29% | 50,631 | 47,870 | 6% | 5.1% | 4.2% | 0.9% | ||
| Providence Health | WA | 1,217 | 362 | 236% | 10,608 | 8,421 | 26% | 11.5% | 4.3% | 7.2% | ||
| Sutter Health | CA | 791 | 683 | 16% | 9,560 | 9,079 | 5% | 8.3% | 7.5% | 0.8% | ||
| IU Health | IN | 719 | 217 | 231% | 5,578 | 4,323 | 29% | 12.9% | 5.0% | 7.9% | ||
| Cleveland Clinic | OH | 685 | 209 | 228% | 6,215 | 5,827 | 7% | 11.0% | 3.6% | 7.4% | ||
| Advocate HealthCare | IL | 672 | 148 | 354% | 4,599 | 4,407 | 4% | 14.6% | 3.4% | 11.3% | ||
| Mayo Clinic | MN | 654 | 584 | 12% | 8,854 | 8,338 | 6% | 7.4% | 7.0% | 0.4% | ||
| Banner Health | AZ | 601 | 11 | 5364% | 4,878 | 4,741 | 3% | 12.3% | 0.2% | 12.1% | ||
| IHC Health Services | UT | 589 | 413 | 43% | 4,056 | 3,856 | 5% | 14.5% | 10.7% | 3.8% | ||
| Adventist Health | FL | 508 | 478 | 6% | 7,347 | 6,986 | 5% | 6.9% | 6.8% | 0.1% | ||
| Texas Health Resources | TX | 483 | 230 | 110% | 3,725 | 3,438 | 8% | 13.0% | 6.7% | 6.3% | ||
| Sentara HealthCare | VA | 431 | 322 | 34% | 4,068 | 3,705 | 10% | 10.6% | 8.7% | 1.9% | ||
| Children's HealthCare Atlanta | GA | 395 | 13 | 2938% | 1,135 | 1,038 | 9% | 34.8% | 1.3% | 33.5% | ||
| Methodist Hospital System | TX | 387 | 101 | 283% | 2,331 | 2,166 | 8% | 16.6% | 4.7% | 11.9% | ||
| Catholic Health East | PA | 383 | 575 | -33% | 4,235 | 3,646 | 16% | 9.0% | 15.8% | -6.7% | ||
| Carolinas HealthCare | NC | 375 | 148 | 153% | 4,194 | 3,695 | 14% | 8.9% | 4.0% | 4.9% | ||
| Inova Health | VA | 363 | 345 | 5% | 2,362 | 2,308 | 2% | 15.4% | 14.9% | 0.4% | ||
| BJC Health Care | MO | 362 | 158 | 129% | 3,849 | 3,626 | 6% | 9.4% | 4.4% | 5.0% | ||
| NY Presbyterian Hospital | NY | 326 | 169 | 93% | 3,848 | 3,637 | 6% | 8.5% | 4.6% | 3.8% | ||
| Catholic Health Partners | OH | 303 | (5) | 6160% | 3,819 | 3,581 | 7% | 7.9% | -0.1% | 8.1% | ||
| Sloan-Kettering Cancer Center | NY | 295 | 107 | 176% | 2,789 | 2,740 | 2% | 10.6% | 3.9% | 6.7% | ||
| Novant Health | NC | 274 | 1 | 27300% | 3,555 | 3,268 | 9% | 7.7% | 0.0% | 7.7% | ||
| North Shore Long Island Jewish Health | NY | 262 | 139 | 88% | 6,702 | 6,223 | 8% | 3.9% | 2.2% | 1.7% | ||
| BayCare Health | FL | 224 | (16) | 1500% | 2,426 | 2,283 | 6% | 9.2% | -0.7% | 9.9% | ||
| Franciscan Alliance | IN | 223 | 77 | 190% | 2,627 | 2,361 | 11% | 8.5% | 3.3% | 5.2% | ||
| SCL Health | KS | 183 | 38 | 382% | 2,223 | 2,076 | 7% | 8.2% | 1.8% | 6.4% | ||
| Iowa Health | IA | 136 | 142 | -4% | 2,733 | 2,380 | 15% | 5.0% | 6.0% | -1.0% | ||
| FYE June 2013 vs 2012 | ||||||||||||
| Ascension Health | IN | 3,145 | 984 | 220% | 17,097 | 15,293 | 12% | 18.4% | 6.4% | 12.0% | ||
| St Joseph Health | CA | 1,922 | 122 | 1475% | 4,956 | 4,383 | 13% | 38.8% | 2.8% | 36.0% | ||
| Dignity Health | CA | 812 | 135 | 501% | 10,412 | 9,496 | 10% | 7.8% | 1.4% | 6.4% | ||
| Catholic Health Initiatives | CO | 490 | 95 | 416% | 10,708 | 9,134 | 17% | 4.6% | 1.0% | 3.5% | ||
| Baylor Health | TX | 473 | 220 | 115% | 4,124 | 3,846 | 7% | 11.5% | 5.7% | 5.7% | ||
| Duke University Health | NC | 440 | 173 | 154% | 2,539 | 2,478 | 2% | 17.3% | 7.0% | 10.3% | ||
| UPMC (Pittsburgh) | PA | 359 | 221 | 62% | 10,188 | 9,637 | 6% | 3.5% | 2.3% | 1.2% | ||
| Johns Hopkins Health | MD | 350 | (6) | 5933% | 4,960 | 4,645 | 7% | 7.1% | -0.1% | 7.2% | ||
| Geisinger Health | PA | 302 | 200 | 51% | 3,355 | 2,919 | 15% | 9.0% | 6.9% | 2.1% | ||
| University Penn Health | PA | 296 | 255 | 16% | 3,501 | 3,382 | 4% | 8.5% | 7.5% | 0.9% | ||
| Memorial Hermann Health Care | TX | 170 | 154 | 10% | 3,578 | 3,351 | 7% | 4.8% | 4.6% | 0.2% | ||
| Hospital Sisters Health | IL | 168 | (12) | 1500% | 2,008 | 1,930 | 4% | 8.4% | -0.6% | 9.0% | ||
| Christus Health | TX | 160 | (41) | 490% | 3,701 | 3,596 | 3% | 4.3% | -1.1% | 5.5% | ||
| Oregon Health & Science Univ | OR | 111 | 105 | 6% | 2,132 | 2,036 | 5% | 5.2% | 5.2% | 0.0% | ||
| Total all 41 | 23,635 | 10,267 | 130% | 252,206 | 232,145 | 9% | 9.4% | 4.4% | 4.9% |
From an examination of audited financial statements in the Electronic Municipal Market Access (EMMA), I found 41 US Non-Profit Hospital Organizations which had Net Assets of more than $2 bil each at June 30, 2013 and which have already filed their fiscal year ended (FYE) June 2013 or Dec 2012 financial statements.
These 41 largest Non-Profit Hospital Organizations generated Total Bottom Line Profit of $23.635 bil in the current fiscal year, up an off-the-charts 130% over the previous fiscal year.
Their Total Operating Revenues for these 41 largest Non-Profit Hospital Organizations were $252.206 bil in the current year, up 9% over the prior year.
Thus, their total Bottom Line Profit Margins as a % of Total Operating Revenues were an extremely impressive 9.4% in the current year, more than double the 4.4% Bottom Line Profit Margin earned in the previous year.
Bottom Line Profit is a combination of Operating Profit and Non-Operating Income or Losses. Non-Operating Income is predominately Investment Returns and to a lesser extent Contributions from Alliances and Business Combinations.
These explosive increases in Investment Returns in the current year were due to the strong US stock market and lower interest rates, with much assistance from the Obama Administration and from the US Fed.....particularly from Ben Bernanke and Janet Yellen.
The strong Operating Profits are due to the operating excellence of these hospitals, to the superb fiscal discipline displayed by these hospitals, and also due to the positive impact of Obamacare.
Only 2 of the above 41 had profit declines in the current year. Catholic Health East's profit decline was due to $323 mil of Contribution Income and to $101 mil of Gains on Sales of Assets, both in the prior year. Iowa Health's profit decline was due to a Contribution received in the prior year related to an affiliation.
Ascension Health's current year profit includes large amounts of Contributions from Business Combinations. Contributions from Affiliations contributed to the substantial increase in current year profit at St. Joseph Health and at Providence Health.
When you think about it, an average Bottom Line Profit Margin of 9.4% is a just incredible number for a Not-For-Profit Organization. But what it does is substantially bolster the Net Asset Positions, and thus also the financial strength, of these Hospital Organizations. This much enhanced financial strength of these Hospitals will give them the financial flexibility to reduce Total US Health Care Costs in the future and thus make Obamacare work very effectively. It looks like these Hospitals have already contributed to the significant decline in the annual percentage increase in Total US Health Care Costs in each of the most recent three years. Obamacare no doubt played a key role here.
