|mils $s||mils $s||mils $s|
|Michigan Non-Profit Hospital Organizations|
|Trinity Health||Livonia||Jun 2013||666||150||516||344%|
|Spectrum Health||Grand Rapids||Jun 2013||318||81||237||293%|
|McLaren Health||Flint||Sep 2012||170||31||139||448%|
|Beaumont Hospital||Royal Oak||Dec 2012||109||36||73||203%|
|Sparrow Health||Lansing||Dec 2012||79||45||34||76%|
|Lakeland Hospitals||St Joseph||Sep 2012||58||24||34||142%|
|Henry Ford Health||Detroit||Dec 2012||55||65||(10)||-15%|
|Bronson Healthcare||Kalamazoo||Dec 2012||42||21||21||100%|
|Munson Healthcare||Traverse City||Jun 2013||42||23||19||83%|
|Oakwood Healthcare||Dearborn||Dec 2012||40||17||23||135%|
|MidMichigan Health||Midland||Jun 2013||24||7||17||243%|
|Total all 11||1,603||500||1,103||221%|
Note: Both Trinity Health and McLaren Health Bottom Line Net Income are exclusive of Contribution Alliance Gains.
Yeah, these 11 Michigan Non-Profit Hospital Organizations generated Total Bottom Line Profits of $1.603 bil in the most recent fiscal year, which was a massive $1.103 bil increase, or an off-the-charts 221% increase, over the previous fiscal year.
But there's more to this earnings story.
When the Insurance Exchanges kick in starting in 2014, these Michigan Non-Profit Hospital Organizations should see their profits increase 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. And since Michigan is wisely Expanding Medicaid, the profits of all Michigan Hospitals will be substantially increased by reducing the huge earnings charges related to both Bad Debts and Charity Care.
So what about the amounts of these two items.....Bad Debts and Uncompensated Charity Care? Well, they are very large, especially when compared to the related Hospital Operating Income.
From a review of the Electronic Municipal Market Access (EMMA), below here are the most recent audited year's Provision for Bad Debts and Uncompensated Charity Care Costs for the 11 Michigan Non-Profit Hospital Organizations which had Net Assets above $400 mil currently.
Michigan has more of the huge St. Louis, Missouri headquartered Ascension Health total hospital beds than any other State. These Michigan beds are mostly in Detroit and Flint. In total, Michigan has 20.9% of Ascension Health's available hospital beds and thus also included below is a 20.9% Michigan allocation of Ascension Health's consolidated amounts.
|mils $s||mils $s||mils $s||mils $s|
|Michigan Hospital Organizations|
|Trinity Health||Livonia||Jun 2013||480||183||663||305|
|Mich 20.9% of Ascension Beds||Various||Jun 2013||245||110||355||83|
|Henry Ford Health||Detroit||Dec 2012||159||61||220||55|
|McLaren Health||Flint||Sep 2012||114||22||136||60|
|Oakwood Healthcare||Dearborn||Dec 2012||98||19||117||21|
|Spectrum Health||Grand Rapids||Jun 2013||77||23||100||212|
|Sparrow Health||Lansing||Dec 2012||73||18||91||31|
|Beaumont Hospital||Royal Oak||Dec 2012||71||9||80||58|
|Bronson Healthcare||Kalamazoo||Dec 2012||40||21||61||26|
|MidMichigan Health||Midland||Jun 2013||37||4||41||5|
|Munson Healthcare||Traverse City||Jun 2013||21||6||27||22|
|Lakeland Hospitals||St Joseph||Sep 2012||19||6||25||21|
|Total all 12||1,434||482||1,916||899|
|Provision for Bad Debts||1,434|
|Estimated Costs of Uncompensated Charity Care||482|
|Operating Income Excluding Bad Debts and Uncompensated Charity Care Costs||2,815|
So, these 12 Hospital Organizations had Audited Total Hospital Operating Income of $899 mil in the most recent fiscal year. Driving down this $899 mil Total Hospital Operating Income were Total Provisions for Bad Debts of a huge $1.434 bil and Total Costs of Uncompensated Charity Care of another $482 mil. Thus, exclusive of these two earnings charges, Total Hospital Operating Income would have been $2.815 bil, which is $1.916 bil higher than the reported $899 mil.
Granted these two earnings charges will not be totally eliminated with the ACA and in combination with States electing to Expand Medicaid, but a substantial amount of these two earnings charges will be eliminated, and especially so since Michigan is electing to Expand Medicaid, which is the predominant driver of these two earnings charges being very substantially reduced.
And the above two earnings charges are just for one year.
With these very strong, ongoing Michigan Non-Profit 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.