Sunday, October 13, 2013

Utah Non-Profit Hospitals Net Assets Up 136% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found two Non-Profit Hospital Organizations headquartered in the State of Utah with Net Assets at the most recent date reported of more than $400 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

IHC Health Services Salt Lake City UT  Jun 13      4,101
Dec 08     1,582 159%
University Utah Hospitals & Clinics Salt Lake City UT Jun 12        434
Jun 09        341 27%

Total of both


    1,923 136%

As you can see from the above chart, the Total Net Assets of these two Utah Non-Profit Hospital Organizations increased by an off-the-charts 136% to $4.535 bil during the Obama Administration.

For the most recent 4.5 years, Salt Lake City-based IHC Health Services generated Total Bottom Line Profits of a massive $2.264 bil, which was an exceptionally high 13.4% of its Total Revenues over the same time period.  This 13.4% Bottom Line Profit Margin is substantially above the 9.6% Combined Bottom Line Profit Margin of the 30 prestigious Dow Industrial companies.

We have all of these so-called Deficit Hawks in the US Congress and they see nothing wrong with shutting down the US Government for the sake of Deficit Reduction and at the same time they also see nothing wrong with so many US Non-Profit Hospital Organization generating Bottom Line Profit Margins far in excess of the country's very best companies in the private sector.  It clearly tells you why the US Congress as a whole now has an approval rating of only 5%.

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.