|mils $s||mils $s|
|Ohio Non-Profit Hospital Organizations|
|Cleveland Clinic Health System||Cleveland||Dec 2012||685||6,215||11.0%|
|Catholic Health Partners||Cincinnati||Dec 2012||303||3,819||7.9%|
|Nationwide Children's Hospital||Columbus||Dec 2012||209||1,489||14.0%|
|ProMedica Health Care||Toledo||Dec 2012||202||1,418||14.2%|
|Mount Carmel Health System||Columbus||Jun 2013||132||1,464||9.0%|
|Children's Hospital||Cincinnati||Jun 2012||129||1,852||7.0%|
|Premier Health Partners||Dayton||Dec 2012||100||1,846||5.4%|
|Summa Health System||Akron||Dec 2012||56||1,359||4.1%|
|University Hospitals Health System||Cleveland||Dec 2012||54||2,266||2.4%|
|Children's Hospital Medical Center||Akron||Dec 2012||47||580||8.1%|
|Kettering Health Network||Dayton||Dec 2012||46||1,228||3.7%|
|UC Health||Cincinnati||Jun 2013||26||1,206||2.2%|
|Christ Hospital Health Network||Cincinnati||Jun 2013||17||762||2.2%|
|Total all 14||2,386||28,033||8.5%|
Note: Columbus-based Mount Carmel Health System is part of the Livonia, Michigan-headquartered Trinity Health.
As you can see in the above chart, the Total Bottom Line Profits for these 14 Ohio Non-Profit Hospital Organizations was $2.386 bil in the most recent audited fiscal year reported, which was a very robust 8.5% of Total Operating Revenues. As a comparison, the Combined Bottom Line Profit Margin of the prestigious 30 Dow Industrial companies was just a little bit higher 9.6% of their Total Revenues in the most recent year. CEOs and CFOs of the 30 Dow Industrial companies keenly aware of how difficult it is for them to generate profit margin percentages must be in utter disbelief at how Non-Profit Hospitals can possibly be doing so well on the profit margin percentage front.
When you compare the 8.5% Total Bottom Line Profit Margin of these 14 Ohio Non-Profit Hospital Organizations with the 9.6% Total Bottom Line Profit Margin of the 30 Dow Industrials, which are some of the very best For-Profit US companies, the clear conclusion is that the earnings of these Ohio Non-Profit Hospital Organizations in the most recent year 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%.
OK, so how have they done even more recently? Of these 14 Ohio Non-Profit Hospital Organizations, there were 8 of them which had December 2012 fiscal year ends and which disclosed their first half ended June 30, 2013 operating results in EMMA. These 8, led by the top-of-breed Cleveland Clinic, generated Total Bottom Line Profits of $836 mil in the first half of 2013, which was an increase of a very robust 32% over the first half of 2012, as you can see in the following chart:
|1st Half||1st Half|
|mils $s||mils $s||Amount||%|
|Ohio Hospital Organizations|
|Cleveland Clinic Health System||Cleveland||347||277||70||25%|
|Nationwide Children's Hospital||Columbus||134||98||36||37%|
|Catholic Health Partners||Cincinnati||104||125||(21)||-17%|
|University Hospitals Health System||Cleveland||96||7||89||1271%|
|ProMedica Health Care||Toledo||88||90||(2)||-2%|
|Kettering Health Network||Dayton||34||6||28||467%|
|Children's Hospital Medical Center||Akron||21||17||4||24%|
|Summa Health System||Akron||12||14||(2)||-14%|
|Total all 8||836||634||202||32%|
These very strong bottom line profits of these Ohio Non-Profit Hospital Organizations were attributable to superb fiscal measures and much more effective health care delivery adopted by hospital executives and hospital employees, which were initiated in conjunction with Obamacare. In addition, the strong US stock market and lower interest rates added to investment returns and thus also to bottom line profits of these Hospital Organizations.
But there's even more to this incredibly positive earnings story.
When the Insurance Exchanges kick in starting in 2014, these Ohio Non-Profit Hospital Organizations should see their profits increase even more......and by quite a bit 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 financially savvy Ohio Republican Governor John Kasich is playing a very pivotal role here by his very proactive push to Expand Medicaid in Ohio, which will dramatically increase the profits of all Ohio Hospitals by substantially reducing the huge earnings charges related to both Bad Debts and Charity Care.
With these very strong, ongoing Ohio 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.
It is just incredible how much the financial strength of these Ohio Non-Profit Hospitals has been enhanced during the Obama Administration.
From EMMA, below here are the Net Assets of these 14 Ohio Non-Profit Hospitals at the most recent date and also at the beginning of the Obama Administration:
|Ohio Hospital Organization||HQs||HQs||Date||Assets||Date||Assets||Change|
|mil $s||mil $s|
|Cleveland Clinic Health System||Cleveland||OH||Jun 13||5,392||Dec 08||2,715||99%|
|Catholic Health Partners||Cincinnati||OH||Jun 13||2,636||Dec 08||1,614||63%|
|OhioHealth||Columbus||OH||Jun 13||2,613||Jun 09||1,259||108%|
|Nationwide Children's Hosital||Columbus||OH||Jun 13||1,572||Dec 08||761||107%|
|ProMedica Health Care||Toledo||OH||Jun 13||1,485||Dec 08||1,042||43%|
|Children's Hospital Cincinnati||Cincinnati||OH||Jun 12||1,476||Jun 09||1,140||29%|
|University Hospitals Health System||Cleveland||OH||Jun 13||1,454||Dec 08||1,078||35%|
|Premier Health Partners||Dayton||OH||Dec12||1,409||Dec 08||1,111||27%|
|Mount Carmel Health||Columbus||OH||Jun 13||1,238||Jun 09||850||46%|
|Kettering Health Network||Dayton||OH||Jun 13||699||Dec 08||340||106%|
|Summa Health System||Akron||OH||Jun 13||618||Dec 08||407||52%|
|UC Health (Cincinnati)||Cincinnati||OH||Jun 13||592||Jun 09||415||43%|
|Children's Hospital Med Center Akron||Akron||OH||Jun 13||435||Dec 08||247||76%|
|Christ Hospital Health Network||Cincinnati||OH||Jun 13||430||Jun 10||289||49%|
|Total all 14||22,049||13,268||66%|
Yeah, these 14 Ohio Non-Profit Hospital Organizations had their Total Net Assets increase by a massive $8.781 bil to $22.049 bil, an increase of 66% during the Obama Administration so far. This $8.781 bil Net Asset increase comes predominantly from the tax-free cumulative earnings of these Ohio Hospitals during the Obama Administration.