Virginia Non-Profit Hospitals Net Assets Up 81% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 8 Non-Profit Hospital Organizations headquartered in the State of Virginia with Net Assets at the most recent date reported of more than $400 mil each.  Below here are the Net Assets of these 8 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
Inova Health System	Falls Church	VA	Jun 13	3,766		Dec 08	1,885	100%
Sentara HealthCare	Norfolk	VA	Jun 13	2,966		Dec 08	1,489	99%
Virginia Commonwealth Univ Health	Richmond	VA	Jun 13	1,382		Jun 09	756	83%
Riverside Healthcare	Newport News	VA	Sep 11	681		Dec 08	575	18%
Virginia Hospital Center Arlington	Arlington	VA	Jun 13	651		Dec 08	351	85%
Valley Health System	Winchester	VA	Jun 13	640		Dec 08	434	47%
Carilion Clinic	Roanoke	VA	Jun 13	484		Sep 09	357	36%
Centra Health	Lynchburg	VA	Jun 13	434		Dec 08	233	86%
Total all 8				11,004			6,080	81%

As you can see from the above chart, the Total Net Assets of these 8 Virginia Non-Profit Hospital Organizations increased by an exceptional 81% to $11.004 bil during the Obama Administration.

For the most recent 4.5 years, Falls Church-based Inova Health System generated Total Bottom Line Profits of a huge $1.469 bil, which was an exceptionally high 14.2% of its Total Revenues over the same time period.  This 14.2% 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 and also imposing these massive across-the-board sequester cost cuts, both 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%.

But it's not just Inova Health.  For the most recent 4.5 years, Norfolk-based Sentara Healthcare generated Total Bottom Line Profits of a massive $1.639 bil, which was a very high 10.3% of its Total Revenues over the same time period.

I have to wonder just how many current and past US Federal Employees, and thus also the US Government, and also US Government Contractors and their employees, are getting ripped off by Inova Health and by Sentara Healthcare charging incredibly high hospital patient fees and pocketing much of these enormous patient fees in their Bottom Line Profits, which end up being added to their huge treasure chest of Investment in Equity and Debt Security portfolios.

For the most recent four years, VCU Health System generated Total Bottom Line Profits of $538 mil, which was a high 7.5% 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.