|mils $s||mils $s|
|Pennsylvania Non-Profit Hospital Organizations|
|Catholic Health East||Newtown Square||Dec 2012||383||4,235||9.0%|
|Jefferson Health||Radnor||Jun 2013||304||3,047||10.0%|
|Geisinger Health||Danville||Jun 2013||302||3,355||9.0%|
|University Penn Health||Philadelphia||Jun 2013||296||3,501||8.5%|
|Children's Hospital||Philadelphia||Jun 2013||290||2,075||14.0%|
|WellSpan Health||York||Jun 2013||123||1,237||9.9%|
|Reading Hospital||West Reading||Jun 2013||110||913||12.0%|
|Lancaster General Health||Lancaster||Jun 2013||101||920||11.0%|
|Pinnacle Health||Harrisburg||Jun 2013||77||831||9.3%|
|Guthrie Health||Sayre||Jun 2013||61||576||10.6%|
|Lehigh Valley Health||Allentown||Jun 2013||60||1,562||3.8%|
|St Luke's Univ Health||Bethlehem||Jun 2013||42||1,122||3.7%|
|Abington Health||Abington||Jun 2013||36||784||4.6%|
|Susquehanna Health||Williamsport||Jun 2013||26||472||5.5%|
|Albert Einstein Healthcare||Philadelphia||Jun 2013||(8)||1,057||-0.8%|
|Total all 15||2,203||25,687||8.6%|
As you can see in the above chart, the Total Bottom Line Profits for these 15 Pennsylvania Non-Profit Hospital Organizations was $2.203 bil in the most recent audited fiscal year reported, which was a very robust 8.6% 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 8.6% Total Bottom Line Profit Margin of these 15 Pennsylvania 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 Pennsylvania 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 much earnings progress have these Pennsylvania Non-Profit Hospital Organizations made in the most recent fiscal year? All of these 15 but Catholic Health East have as their most recent year the fiscal year ended June 30, 2013. And so does UPMC. From EMMA, these 16 Pennsylvania Non-Profit Hospital Organizations generated Audited Total Bottom Line Profits of $2.562 bil in the most recent fiscal year, which was an exceptionally robust 52% above the prior fiscal year, as you can see in the following chart:
|mils $s||mils $s||Amount||%|
|Pennsylvania Non-Profit Hospital Organizations|
|Catholic Health East||Newtown Square||383||252||131||52%|
|University Penn Health||Philadelphia||296||255||41||16%|
|Reading Hospital||West Reading||110||13||97||746%|
|Lancaster General Health||Lancaster||101||50||51||102%|
|Lehigh Valley Health||Allentown||60||132||(72)||-55%|
|St Luke's Univ Health||Bethlehem||42||34||8||24%|
|Albert Einstein Healthcare||Philadelphia||(8)||17||(25)||-147%|
|Total all 16||2,562||1,687||875||52%|
These very strong bottom line profits of these Pennsylvania 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 Pennsylvania 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. It appears that Pennsylvania is making the wise move, both morally and fiscally, to Expand Medicaid in its State. This action will dramatically increase the profits of all Pennsylvania Hospitals, both Non-Profit ones and For-Profit ones like Universal Health Services, by substantially reducing the huge earnings charges related to both Bad Debts and Charity Care.
With these very strong, ongoing Pennsylvania 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 Pennsylvania Non-Profit Hospitals has been enhanced during the Obama Administration.
From EMMA, below here are the Net Assets of these 16 Pennslvania Non-Profit Hospital Organizations at the most recent date and also at the beginning of the Obama Administration:
|mil $s||mil $s|
|UPMC||Pittsburgh||PA||Jun 13||4,617||Jun 09||2,756||68%|
|Catholic Health East||Newtown Square||PA||Jun 13||3,631||Dec 08||1,978||84%|
|Children's Hospital Philadelphia||Philadelphia||PA||Jun 13||2,897||Jun 09||1,938||49%|
|Jefferson Health System||Radnor||PA||Jun 13||2,872||Jun 09||1,860||54%|
|Geisinger Health System||Danville||PA||Jun 13||2,044||Jun 09||901||127%|
|University Penn Health System||Philadelphia||PA||Jun 13||2,041||Jun 09||1,163||75%|
|Lehigh Valley Health Network||Allentown||PA||Jun 13||1,066||Jun 09||590||81%|
|Lancaster General Health||Lancaster||PA||Jun 13||942||Jun 09||622||51%|
|Reading Hospital||West Reading||PA||Jun 13||895||Jun 09||730||23%|
|Abington Health||Abington||PA||Jun 13||764||Jun 09||518||47%|
|WellSpan Health||York||PA||Jun 13||659||Jun 09||387||70%|
|Guthrie Health||Sayre||PA||Jun 13||624||Jun 09||375||66%|
|Pinnacle Health System||Harrisburg||PA||Jun 13||566||Jun 09||304||86%|
|Albert Einstein Healthcare Network||Philadelphia||PA||Jun 13||525||Jun 09||401||31%|
|St Luke's University Health Network||Bethlehem||PA||Jun 13||475||Jun 09||298||59%|
|Susquehanna Health System||Williamsport||PA||Jun 13||436||Jun 09||226||93%|
|Total all 16||25,054||15,047||67%|
Yeah, these 16 Pennsylvania Non-Profit Hospital Organizations had their Total Net Assets increase by a massive $10.007 bil to $25.054 bil, an increase of 67% during the Obama Administration so far. This $10.007 bil Net Asset increase comes predominantly from the tax-free cumulative earnings of these Pennsylvania Hospitals during the Obama Administration.