| 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 | ||||
| Rhode Island Non-Profit Hospital Organizations | ||||||
| Lifespan Corp | Providence | Sep 2012 | 41 | (9) | 50 | 556% |
| Care New England Health | Providence | Sep 2012 | 24 | - | 24 | NM |
| South County Hospital Healthcare | Wakefield | Sep 2013 | 9 | 4 | 5 | 125% |
| Newport Health Care | Newport | Sep 2012 | 9 | (1) | 10 | 1000% |
| Roger Williams Medical Center | Providence | Sep 2012 | 2 | 1 | 1 | 100% |
| St Joseph Health Services | Providence | Sep 2012 | (4) | (12) | 8 | 67% |
| Southeastern Healthcare | Pawtucket | Sep 2012 | (14) | (6) | (8) | -133% |
| Total all 7 | 67 | (23) | 90 | 391% |
Yeah, these 7 Rhode Island Non-Profit Hospital Organizations generated Total Bottom Line Profits of $67 mil in the most recent fiscal year, which was a $90 mil increase, or an exceptionally robust 391% increase, over the previous fiscal year.
But there's much more to this earnings story.
When the Insurance Exchanges kick in starting in 2014, these Rhode Island Non-Profit Hospital Organizations should see their profits increase by much 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 Rhode Island will be electing to Expand Medicaid, the profits of all Rhode Island 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 these 7 Rhode Island Non-Profit Hospital Organizations:
| One Year | One | |||||
| One Year | Estimated | Year | One | |||
| Most | Provision | Cost of | Total | Year | ||
| Recent | For | Uncompensated | Earnings | Hospital | ||
| Annual | Bad | Charity | Charge | Operating | ||
| FYE | Debts | Care | of Both | Income | ||
| mils $s | mils $s | mils $s | mils $s | |||
| Rhode Island Non-Profit Hospital Organizations | ||||||
| Lifespan Corp | Sep 2012 | 90 | 65 | 155 | 18 | |
| Care New England Health | Sep 2012 | 43 | 14 | 57 | 11 | |
| Southeastern Healthcare | Sep 2012 | 15 | 5 | 20 | (16) | |
| St Joseph Health Services | Sep 2012 | 10 | 5 | 15 | (4) | |
| Roger Williams Medical Center | Sep 2012 | 10 | 4 | 14 | 2 | |
| Newport Health Care | Sep 2012 | 7 | 4 | 11 | (3) | |
| South County Hospital Healthcare | Sep 2012 | 7 | 1 | 8 | 4 | |
| Total all 7 | 182 | 98 | 280 | 12 | ||
| Provision for Bad Debts | 182 | |||||
| Uncompensated Charity Care Costs | 98 | |||||
| Operating Income Excluding Bad Debts and Uncompensated Charity Care Costs | 292 | |||||
So, these 7 Rhode Island Hospital Organizations had Audited Total Hospital Operating Income of $12 mil in the most recent fiscal year. Driving down this $12 mil Total Hospital Operating Income were Total Provisions for Bad Debts of $182 mil and Total Costs of Uncompensated Charity Care of another $98 mil. Thus, exclusive of these two earnings charges, Total Hospital Operating Income would have been $292 mil, which is $280 mil higher than the reported $12 mil.
Granted these two earnings charges will not be totally eliminated with the ACA, but a substantial amount of these two earnings charges will be eliminated, and especially since Rhode Island has decided 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 solid, ongoing Rhode Island 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.
