Tuesday, November 19, 2013

Maine Non-Profit Hospital Earnings Up 41% Under Obamacare and Headed Higher

From a review of the Electronic Municipal Market Access (EMMA), I found 2 Non-Profit Hospital Organizations headquartered in the State of Maine with Current Net Assets of more than $200 mil each.  Below here are the Bottom Line Profits in the most recent two fiscal years reported for each of these Maine Non-Profit Hospital Organizations:


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
Maine Non-Profit Hospital Organizations

Eastern Maine Healthcare Brewer Sep 2013            66                 60              6 10%
MaineGeneral Health Gardiner Jun 2013            16                  (2)            18 900%

Total of both

           82                 58            24 41%

Yeah, these 2 Maine Non-Profit Hospital Organizations generated Total Bottom Line Profits of $82 mil in the most recent fiscal year, which was a $24 mil increase, or a robust 41% increase, over the previous fiscal year.

But there's more to this earnings story.

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

Under the Affordable Care Act (ACA), Hospital Organizations' both future Hospital Operating Income and future Bottom Line Income will be bolstered due to many of the Uninsured getting insurance and also due to the many of the Underinsured getting much better insurance.  And if Maine changed its present course and elected to Expand Medicaid, the profits of all Maine Hospitals would be substantially increased by reducing the huge earnings charges related to both Bad Debts and Charity Care.