Iowa Non-Profit Hospital Earnings Up 123% Under Obamacare and Headed Higher

From a review of the Electronic Municipal Market Access (EMMA), I found 3 Non-Profit Hospital Organizations headquartered in the State of Iowa with Net Assets at the most recent date reported of more than $400 mil each.  Below here are the Bottom Line Profits in the most recent two audited fiscal years reported for each of these Iowa 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
Iowa Non-Profit Hospital Organizations
UnityPoint Health	Des Moines	Dec 2012	198	32	166	519%
Univ Iowa Hospitals&Clinics	Iowa City	Jun 2012	68	89	(21)	-24%
Genesis Health	Davenport	Jun 2013	40	16	24	150%
Total all 3			306	137	169	123%

Note: UnityPoint Health's prior year Bottom Line Profits excludes its Contribution Economic Gain from Alliances.

Yeah, these 3 Iowa Non-Profit Hospital Organizations generated Total Bottom Line Profits of $306 mil in the most recent fiscal year, which was a $169 mil increase, or an exceptionally robust 123% increase, over the previous fiscal year.   And the huge UnityPoint Health generated earnings growth of another 34% in the most recent 6 Months ended June 2013.
 
And 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 each of these Iowa 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
Iowa Non-Profit Hospital Organizations
UnityPoint Health	Des Moines	Dec 2012	198	2,733	7.2%
Univ Iowa Hospitals&Clinics	Iowa City	Jun 2012	68	1,098	6.2%
Genesis Health	Davenport	Jun 2013	40	552	7.2%
Total all 3			306	4,383	7.0%

As you can see in the above chart, the Total Bottom Line Profits for these 3 Iowa Non-Profit Hospital Organizations was $306 mil in the most recent audited fiscal year reported, which was a robust 7.0% of Total Operating Revenues.  As a comparison, the Combined Bottom Line Profit Margin of the prestigious 30 For-Profit Dow Industrial companies was 9.6% of their Total Revenues in the most recent year.

But there's more to this earnings story.

When the Insurance Exchanges kick in starting in 2014, these Iowa Non-Profit Hospital Organizations should see their profits increase by even more.

Under the Affordable Care Act (ACA), Hospital Organizations' both future Hospital Operating Income and future Bottom Line Income will be bolstered 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 Iowa Hospitals will be increased by reducing the huge earnings charges related to both Bad Debts and Charity Care.