Connecticut Non-Profit Hospital Earnings Up 76% Under Obamacare and Headed Higher After Full Rollout

From a review of the Electronic Municipal Market Access (EMMA), I found 7 Non-Profit Hospital Organizations in the State of Connecticut with Net Assets at the most recent date reported of more than $200 mil each.  Below here are the Bottom Line Profits in the most recent two audited fiscal years reported for each of these 7 Connecticut Non-Profit Hospital Organizations:

			Most
		Most	Recent	Prior
		Recent	Year	Year
		Annual	Bottom	Bottom
		Fiscal	Line	Line	Increase	Increase
	City	Year	Net	Net	(Decrease)	(Decrease)
	HQs	End	Income	Income	Amount	%
			mils $s	mils $s	mils $s
Connecticut Non-Profit Hospital Organizations
Yale-New Haven Hospital	New Haven	Sep 2012	131	67	64	96%
Hartford Healthcare	Hartford	Sep 2012	75	55	20	36%
Western Connecticut Health	Danbury	Sep 2012	43	(3)	46	1533%
William Backus Hospital	Norwich	Sep 2012	39	25	14	56%
Stamford Health	Stamford	Sep 2012	25	27	(2)	-7%
Greenwich Hospital	Greenwich	Sep 2012	16	6	10	167%
Lawrence & Memorial Corp	New London	Sep 2012	8	15	(7)	-47%
Total all 7			337	192	145	76%

So these 7 Connecticut Non-Profit Hospital Organizations generated Total Bottom Line Profits of $337 mil in the most recent fiscal year audited, which was a $145 mil increase, or a very robust 76% increase, over the previous fiscal year.

Also, below here are the Bottom Line Profits, Total Operating Revenues  and the related Profit Margin Percentages in the most recent audited fiscal year reported for these 7 Connecticut Non-Profit Hospital Organizations: 

		Most
		Recent
		Annual	Bottom
		Fiscal	Line	Total	Profit
	City	Year	Net	Operating	Margin
	HQs	End	Income	Revenues	%
			mils $s	mils $s
Connecticut Non-Profit Hospital Organizations
Yale-New Haven Hospital	New Haven	Sep 2012	131	1,728	7.6%
Hartford Healthcare	Hartford	Sep 2012	75	2,070	3.6%
Western Connecticut Health	Danbury	Sep 2012	43	742	5.8%
William Backus Hospital	Norwich	Sep 2012	39	283	13.8%
Stamford Health	Stamford	Sep 2012	25	503	5.0%
Greenwich Hospital	Greenwich	Sep 2012	16	310	5.2%
Lawrence & Memorial Corp	New London	Sep 2012	8	358	2.2%
Total all 7			337	5,994	5.6%

As you can see in the above chart, the Total Bottom Line Profits for these 7 Connecticut Non-Profit Hospital Organizations was $337 mil in the most recent audited fiscal year reported, which was a 5.6% of Total Operating Revenues.  As a comparison, the Combined Bottom Line Profit Margin of the prestigious 30 For-Profit Dow Industrial companies was a higher 9.6% of their Total Revenues in the most recent year.
 
It should be pointed out that Hartford Healthcare, which is the largest of these in terms of Revenues, has experienced a steep decline in its Hospital Operating Income since September 2012.  In the most recent 9 Months Ended June 2013, it registered a Hospital Operating Loss of $20 mil, a decrease of $66 mil from the $46 mil of Hospital Operating Income generated in the 9 Months Ended June 2012.  The main driver here is a 7% increase in Total Salaries and Fringe Benefits, far outpacing the 2% increase in Total Operating Revenues.  In addition, Purchased Services increased 11%.

But there's more to this earnings story.

Under the Affordable Care Act (ACA), Hospital Organizations' future Hospital Operating Income will be bolstered very robustly due to many of the Uninsured getting insurance and also due to the many of the Underinsured getting much better insurance.  The profits of all Connecticut Hospitals will be increased by reducing the huge earnings charges related to both Bad Debts and Charity Care.