Nebraska Non-Profit Hospital Earnings Up 70% in the Most Recent Year Under Obamacare and Headed Higher After Full Rollout

From a review of the Electronic Municipal Market Access (EMMA), I found 5 Non-Profit Hospital Organizations headquartered in the State of Nebraska with Net Assets at the most recent date reported of more than $100 mil each.  Below here are the Bottom Line Profits in the most recent two audited fiscal years reported for each of these 5 Nebraska 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
Nebraska Non-Profit Hospital Organizations
Nebraska Medical Center	Omaha	Jun 2012	37	46	(9)	-20%
Bryan Health	Lincoln	May 2013	62	43	19	44%
North Platte Hospital	North Platte	Dec 2012	12	10	2	20%
Children's Hospital & Med Ctr	Omaha	Dec 2012	41	8	33	413%
Nebraska Methodist Health	Omaha	Dec 2012	33	2	31	1550%
Total all 5			185	109	76	70%

So these 5 Nebraska Non-Profit Hospital Organizations generated Total Bottom Line Profits of $185 mil in the most recent fiscal year, which was a very robust 70% increase over the previous fiscal year. 

Also, 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 5 Nebraska 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
Nebraska Non-Profit Hospital Organizations
Bryan Health	Lincoln	May 2013	62	506	12.3%
Children's Hospital & Med Ctr	Omaha	Dec 2012	41	284	14.4%
Nebraska Medical Center	Omaha	Jun 2012	37	802	4.6%
Nebraska Methodist Health	Omaha	Dec 2012	33	655	5.0%
North Platte Hospital	North Platte	Dec 2012	12	145	8.3%
Total all 5			185	2,392	7.7%

As you can see in the above chart, the Total Bottom Line Profits for these 5 Nebraska Non-Profit Hospital Organizations was $185 mil in the most recent audited fiscal year reported, which was a very robust 7.7% of Total Operating Revenues.  As a comparison, the Combined Bottom Line Profit Margin of the prestigious 30 For-Profit 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 Nebraska 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 Nebraska 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.  The profits of all Nebraska Hospitals will be increased by reducing the huge earnings charges related to both Bad Debts and Charity Care.

With these very strong, ongoing Nebraska 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.