Monday, November 18, 2013

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.