Hawaii Non-Profit Hospital Earnings On Fire Under Obamacare

From a review of the Electronic Municipal Market Access (EMMA), I found 2 Non-Profit Hospital Organizations headquartered in the State of Hawaii with Net Assets at the most recent date reported of more than $400 mil each.  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 both of these Hawaii Non-Profit Hospital Organizations:

		Most
		Recent
		Annual	Bottom
		Fiscal	Line	Total	Profit
		Year	Net	Operating	Margin
		End	Income	Revenues	%
			mils $s	mils $s
Hawaii Non-Profit Hospital Organizations
Queens Health System		Jun 2013	147	942	15.6%
Hawaii Pacific Health		Jun 2013	110	1,017	10.8%
Total of both			257	1,959	13.1%

As you can see in the above chart, the Total Bottom Line Profits for these 2 Hawaii Non-Profit Hospital Organizations was $257 mil in the most recent audited fiscal year reported, which was an exceptionally robust 13.1% of Total Operating Revenues.  As a comparison, the Combined Bottom Line Profit Margin of the prestigious 30 Dow Industrial companies was just a substantially lower 9.6% of their Total Revenues in the most recent year.  CEOs and CFOs of the 30 Dow Industrial companies keenly aware of how difficult it is for them to generate profit margin percentages must be in utter disbelief at how Non-Profit Hospitals can possibly be doing so well on the profit margin percentage front.

When you compare the 13.1% Total Bottom Line Profit Margin of these 2 Hawaii Non-Profit Hospital Organizations with the 9.6% Total Bottom Line Profit Margin of the 30 Dow Industrials, which are some of the very best For-Profit US companies, the clear conclusion is that the earnings of these Hawaii Non-Profit Hospital Organizations in the most recent year were on fire.

But it also reveals a main reason why the US Health Care Costs are so much out of control.....Hospitals charge way too much and retain these excess charges in their Bottom Line Profits which get added to their massive treasure chest of Investments in Stocks and Bonds.  And the US Congress, both Republicans and Democrats, nearly all 100% subservient to Hospitals, just sits there and twiddles its thumbs and refuses to work together for the common good of the country.  With this complete lack of governance, coupled with consistently choosing Hospitals over People, it's no wonder why the approval rating of the US Congress is now less than 10%.

OK, so how much earnings progress have these Hawaii Non-Profit Hospital Organizations made in the most recent fiscal year?  From EMMA, these 2 Hawaii Non-Profit Hospital Organizations generated Audited Total Bottom Line Profits of $257 mil in the most recent fiscal year, which was an exceptionally robust 102% above the prior fiscal year, as you can see in the following chart:

			Most
		Most	Recent	Prior
		Recent	Year	Year
		Annual	Bottom	Bottom
		Fiscal	Line	Line	Increase	Increase
		Year	Net	Net	(Decrease)	(Decrease)
		End	Income	Income	Amount	%
			mils $s	mils $s	mils $s
Hawaii Non-Profit Hospital Organizations
Queens Health System		Jun 2013	147	54	93	172%
Hawaii Pacific Health		Jun 2013	110	73	37	51%
Total of both			257	127	130	102%

These exceptionally strong bottom line profits of these Hawaii Non-Profit Hospital Organizations were attributable to superb fiscal measures and much more effective health care delivery adopted by hospital executives and hospital employees, which were initiated in conjunction with Obamacare.  In addition, the strong US stock market and lower interest rates added to investment returns and thus also to bottom line profits of these Hospital Organizations.

With these exceptionally strong, ongoing Hawaii Hospital earnings under Obamacare, the ultimate result should be a reduction in hospital patient charges, a bending back of the US Long-term Total Health Care Cost Curve and a reduction in the US Debt.

That's quite a financial Trifecta!

And it also only makes sense that some of these huge past and future bottom line profits of these US Hospital Organizations, both Non-Profit and For-Profit ones, should be used to wisely fund a substantial portion of the elimination of the US Government Sequester Cost Cuts over the next say 3 to 4 years which are now being negotiated by 29 US Congressional members of the Bilateral and Bicameral Committee Conference on Budget Negotiations.  Both clear-thinking Republicans and clear-thinking Democrats should be on board with this wise funding vehicle. 

Lastly, it is just incredible how much the financial strength of these Hawaii Non-Profit Hospitals has been enhanced during the Obama Administration.

From EMMA, below here are the Net Assets of these 2 Hawaii Non-Profit Hospital Organizations at June 30, 2013 and also four years earlier:

						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
Queens Health System	Honololulu	HI	Jun 13	1,046		Jun 09	548	91%
Hawaii Pacific Health	Honololulu	HI	Jun 13	415		Jun 09	228	82%
Total of both				1,461			776	88%

Yeah, these Hawaii Non-Profit Hospital Organizations had their Total Net Assets increase by $685 mil to $1.461 bil, an increase of 88% during the Obama Administration so far.  This $685 mil Net Asset increase comes predominantly from the tax-free cumulative earnings of these Hawaii Hospitals during the Obama Administration.