| 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 | ||||
| Minnesota Non-Profit Hospital Organizations | ||||||
| Mayo Clinic | Rochester | Dec 2012 | 859 | 651 | 208 | 32% |
| Health Partners | Bloomington | Dec 2012 | 206 | 220 | (14) | -6% |
| Allina Health | Minneapolis | Dec 2012 | 200 | 102 | 98 | 96% |
| Fairview Health | Minneapolis | Dec 2012 | 166 | (22) | 188 | 855% |
| CentraCare Health | St Cloud | Jun 2013 | 149 | 11 | 138 | 1255% |
| Essentia Health | Minneapolis | Jun 2013 | 93 | 14 | 79 | 564% |
| Park Nicollet Health | St Louis Park | Dec 2012 | 66 | 17 | 49 | 288% |
| Children's Hosp&Clinics | Minneapolis | Dec 2012 | 55 | (6) | 61 | 1017% |
| Total all 8 | 1,794 | 987 | 807 | 82% | ||
Yeah, these 8 Minnesota Non-Profit Hospital Organizations generated Total Bottom Line Profits of $1.794 bil in the most recent fiscal year, which was a $807 mil increase, or an exceptional 82% increase, over the previous fiscal year.
But there's more to this earnings story.
So how have these Hospitals done in 2013 on the earnings front? Six of these 8 have December fiscal year ends. From EMMA, these 6 Minnesota Non-Profit Hospital Organizations generated Total Bottom Line Profits of $1.263 bil in the year-to-date 2013 interim periods disclosed in EMMA, which was another 27% increase from the prior year comparable periods, as you can see in the following chart:
| 2013 | 2012 | |||||
| Bottom | Bottom | |||||
| Line | Line | |||||
| City | Interim | Net | Net | Increase | Increase | |
| HQs | Period | Income | Income | (Decrease) | (Decrease) | |
| mils $s | mils $s | Amount | % | |||
| Minneapolis Hospital Organizations | ||||||
| Mayo Clinic | Rochester | 9 Months Sept | 689 | 551 | 138 | 25% |
| Allina Health | Minneapolis | 9 Months Sept | 238 | 171 | 67 | 39% |
| Fairview Health | Minneapolis | 9 Months Sept | 172 | 116 | 56 | 48% |
| Health Partners | Bloomington | 6 Months Jun | 102 | 83 | 19 | 23% |
| Children's Hosp&Clinics | Minneapolis | 9 Months Sept | 44 | 46 | (2) | -4% |
| Park Nicollet Health | St Louis Park | 6 Months Jun | 18 | 27 | (9) | -33% |
| Total all 6 | 1,263 | 994 | 269 | 27% |
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 8 Minneapolis 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 | ||||
| Minneapolis Non-Profit Hospital Organizations | |||||
| Mayo Clinic | Rochester | Dec 2012 | 859 | 8,844 | 9.7% |
| Health Partners | Bloomington | Dec 2012 | 206 | 3,975 | 5.2% |
| Allina Health | Minneapolis | Dec 2012 | 200 | 3,278 | 6.1% |
| Fairview Health | Minneapolis | Dec 2012 | 166 | 3,218 | 5.2% |
| CentraCare Health | St Cloud | Jun 2013 | 149 | 938 | 15.9% |
| Essentia Health | Minneapolis | Jun 2013 | 93 | 1,648 | 5.6% |
| Park Nicollet Health | St Louis Park | Dec 2012 | 66 | 1,235 | 5.3% |
| Children's Hosp&Clinics | Minneapolis | Dec 2012 | 55 | 652 | 8.4% |
| Total all 8 | 1,794 | 23,788 | 7.5% | ||
As you can see in the above chart, the Total Bottom Line Profits for these 8 Minnesota Non-Profit Hospital Organizations was $1.794 bil in the most recent audited fiscal year reported, which was a very robust 7.5% of Total Operating Revenues. As a comparison, the Combined Bottom Line Profit Margin of the prestigious 30 Dow Industrial companies was just a bit higher 9.6% of their Total Revenues in the most recent year.
When you review all of the above, the clear conclusion is that the recent earnings of these Minnesota Non-Profit Hospital Organizations 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%.
But there's even more to this positive earnings story.
When the Insurance Exchanges kick in starting in 2014, these Minnesota 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.
With these very strong, ongoing Minnesota 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.
And lastly, it is just incredible how much the financial strength of these Minnesota Non-Profit Hospitals has been enhanced during the Obama Administration.
From EMMA, below here are the Net Assets of these 8 Minnesota Non-Profit Hospital Organizations at June 30, 2013 and also at the beginning of the Obama Administration:
| 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 | |||||||
| Mayo Clinic | Rochester | MN | Jun 13 | 5,107 | Dec 08 | 2,326 | 120% | |
| HealthPartners | Bloomington | MN | Jun 13 | 1,949 | Dec 08 | 503 | 287% | |
| Allina Health System | Minneapolis | MN | Jun 13 | 1,804 | Dec 08 | 804 | 124% | |
| Fairview Health Services | Minneapolis | MN | Jun 13 | 1,384 | Dec 08 | 732 | 89% | |
| Essentia Health | Minneapolis | MN | Jun 13 | 801 | Jun 09 | 519 | 54% | |
| Centracare Health System | St Cloud | MN | Jun 13 | 694 | Jun 09 | 381 | 82% | |
| Children's Hospitals and Clinics | Minneapolis | MN | Jun 13 | 620 | Dec 08 | 370 | 68% | |
| Park Nicollet Health Services | St Louis Park | MN | Jun 13 | 538 | Dec 08 | 299 | 80% | |
| Total all 8 | 12,897 | 5,934 | 117% |
Yeah, these 8 Minnesota Non-Profit Hospital Organizations had their Total Net Assets increase by a massive $6.963 bil to $12.897 bil, an increase of a huge 117% during the Obama Administration so far. This $6.963 bil Net Asset increase comes predominantly from the tax-free cumulative earnings of these Minneapolis Hospitals during the Obama Administration.
