Sunday, October 13, 2013

Wisconsin Non-Profit Hospitals Net Assets Up 58% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 9 Non-Profit Hospital Organizations headquartered in the State of Wisconsin with Net Assets at the most recent date reported of more than $400 mil each.  Below here are the Net Assets of these 9 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









Froedtert Health Milwaukee WI Jun 13     1,341
Jun 09        824 63%
Medical College Wisconsin Milwaukee WI Mar 13     1,213
Jun 09        808 50%
Ministry Health Care Milwaukee WI Jun 13     1,065
Sep 09        730 46%
Aurora Health Care Milwaukee WI  Jun 13      1,029
Dec 08        546 88%
Children's Hospital and Health System Milwaukee WI  Jun 13         954
Dec 08        460 107%
Wheaton Franciscan Health Glendale WI Jun 13        937
Jun 09        704 33%
University Wisconsin Hosps & Clinics Madison WI Jun 12        775
Jun 09        514 51%
Gundersen Lutheran Health La Crosse WI  Jun 13         729
Dec 08        429 70%
ProHealth Care Waukesha WI Jun 13        569
Sep 09        423 35%









Total all 9


    8,612

    5,438 58%

As you can see from the above chart, the Total Net Assets of these 9 Wisconsin Non-Profit Hospital Organizations increased by a very robust 58% to $8.612 bil during the Obama Administration.

For the most recent four years, Froedtert Health generated Total Bottom Line Profits of $514 mil, which was a high 9.6% of its Total Revenues over the same time period.  This 9.6% Bottom Line Profit Margin precisely matched the 9.6% Combined Bottom Line Profit Margin of the 30 prestigious Dow Industrial companies.

For the most recent 3.75 years, Medical College of Wisconsin generated Total Bottom Line Profits of $311 mil, which was a high 9.1% of its Total Revenues over the same time period.

For the most recent 3.75 years, Ministry Health Care generated Total Bottom Line Profits of $347 mil, which was 6.1% of its Total Revenues over the same time period.

Lastly, for the most recent 4.5 years, Aurora Health Care generated Total Bottom Line Profits of $689 mil, which was a very reasonable 3.8% 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.