To understand what is going on with Wisconsin Non-Profit Hospital Organization Earnings, it is helpful to break them down by how financially strong the Hospitals are.....or by their Net Assets.
When this breakdown is done, there is a crystal-clear conclusion.....the weaker the financial strength of the Hospital Organization, the lower the earnings.
Bottom Line Earnings is a combination of Operating Income and Non-Operating Income, with the latter being due predominantly to Investment Returns.
On a Hospital Operating Income basis, here is a summary of the most recent audited annual earnings results of these Hospitals by Net Asset size:
Net Assets > $1 Bil..............Total Operating Income as % of Total Revenues..4.5%
Net Assets $400 Mil-$1 Bil.Total Operating Income as % of Total Revenues..4.0%
Net Assets $200-400 Mil...Total Operating Income as % of Total Revenues..3.5%
Net Assets < $200 Mil........Total Operating Income as % of Total Revenues..2.5%
When the 16 Wisconsin Hospitals with Net Assets of less than $200 mil are generating Total Operating Income of a very modest 2.5% of their Total Operating Revenues, then they are struggling and need financial help.
The best way to provide this needed financial boost is to simply Expand Medicaid in Wisconsin. This will substantially reduce two Hospital Operating Statement Earnings Charges.....Provisions for Bad Debts and Uncompensated Charity Care Costs.
And it's the same pattern with Bottom Line Profits by Net Asset size:
Net Assets > $1 Bil..............Total Bottom Line Profits as % of Total Revenues..7.5%
Net Assets $400 Mil-$1 Bil.Total Bottom Line Profits as % of Total Revenues..6.9%
Net Assets $200-400 Mil....Total Bottom Line Profits as % of Total Revenues..6.0%
Net Assets < $200 Mil........Total Bottom Line Profits as % of Total Revenues..4.2%
The large Wisconsin Hospitals are doing just great.....but clearly not the smaller ones.
From a review of audited financial statements in the Electronic Municipal Market Access (EMMA), below here are the Bottom Line Profits, Operating Profits and Operating Revenues of the 34 Non-Profit Hospital Organizations headquartered in the State of Wisconsin with Total Operating Revenues of more than $10 mil each in the most recent fiscal year, stratified by Net Asset size:
| ` | Most | ||||||
| Recent | Bottom | Operating | |||||
| Annual | Bottom | Line | Income | ||||
| Fiscal | Line | Total | Profit | Profit | |||
| City | Year | Net | Operating | Margin | Operating | Margin | |
| HQs | End | Income | Revenues | % | Income | % | |
| mils $s | mils $s | mils $s | mils $s | ||||
| Wisconsin Non-Profit Hospital Organizations | |||||||
| Net Assets > $1 Bil | |||||||
| Aurora Health Care | Milwaukee | Dec 2012 | 198 | 4,125 | 4.8% | 138 | 3.3% |
| Froedtert | Milwaukee | Jun 2013 | 179 | 1,499 | 11.9% | 83 | 5.5% |
| Sisters St. Francis in Wisconsin | Various | Jun 2013 | 120 | 868 | 13.8% | 62 | 7.1% |
| Ministry Health Care | Milwaukee | Jun 2013 | 101 | 1,597 | 6.3% | 89 | 5.6% |
| Medical College Wisconsin | Milwaukee | Jun 2013 | 81 | 926 | 8.7% | 31 | 3.3% |
| Total all 5...Net Assets > $1 Bil | 679 | 9,015 | 7.5% | 403 | 4.5% | ||
| Net Assets $400 Mil-$1 Bil | |||||||
| ProHealth Care | Waukesha | Sep 2013 | 97 | 688 | 14.1% | 33 | 4.8% |
| Univ Wisconsin Hosps&Clinics | Madison | Jun 2013 | 84 | 1,258 | 6.7% | 109 | 8.7% |
| Gundersen Lutheran Health | La Crosse | Dec 2012 | 83 | 882 | 9.4% | 43 | 4.9% |
| Marshfield Clinic | Eau Claire | Sep 2012 | 79 | 1,872 | 4.2% | 48 | 2.6% |
| Wheaton Franciscan Health | Glendale | Jun 2013 | 69 | 1,763 | 3.9% | 39 | 2.2% |
| ThedaCare | Appleton | Dec 2012 | 62 | 709 | 8.7% | 28 | 3.9% |
| Children's Hospital & Health | Milwaukee | Dec 2012 | 58 | 724 | 8.0% | 17 | 2.3% |
| Aspirus Wausau Obligated Group | Wausau | Jun 2013 | 57 | 628 | 9.1% | 28 | 4.5% |
| Total all 8 With Net Assets $400 Mil-$1 Bil | 589 | 8,524 | 6.9% | 345 | 4.0% | ||
| Net Assets $200-400 Mil | |||||||
| Meriter Hospital | Madison | Dec 2012 | 35.0 | 432 | 8.1% | 18.9 | 4.4% |
| Agnesian HealthCare | Fond du Lac | Jun 2013 | 30.4 | 413 | 7.4% | 23.2 | 5.6% |
| Bellin Health | Green Bay | Sep 2012 | 17.9 | 399 | 4.5% | 9.6 | 2.4% |
| Franciscan Sisters Christian Charity | Manitowoc | Dec 2012 | 17.1 | 185 | 9.2% | 2.1 | 1.1% |
| Mercy Alliance | Janesville | Jun 2012 | 16.1 | 497 | 3.2% | 13.7 | 2.8% |
| Total all 5..Net Assets $200-400 mil | 116.5 | 1,926 | 6.0% | 67.5 | 3.5% | ||
| Net Assets < $200 Mil | |||||||
| Beloit Health | Beloit | Dec 2012 | 7.7 | 191 | 4.0% | 5.0 | 2.6% |
| Riverview Hospital Association | Wisconsin Rapids | Aug 2012 | 7.5 | 86 | 8.7% | 5.0 | 5.8% |
| Sauk Prairie Memorial Hospital | Prairie du Sac | Dec 2012 | 5.6 | 62 | 9.0% | 3.1 | 5.0% |
| Watertown Regional Medical Center | Watertown | Sep 2012 | 5.2 | 96 | 5.4% | 1.2 | 1.3% |
| Tomah Memorial Hospital | Tomah | Sep 2012 | 5.1 | 36 | 14.2% | 3.6 | 10.0% |
| Monroe Clinic | Monroe | Dec 2012 | 4.1 | 163 | 2.5% | 5.8 | 3.6% |
| Divine Savior Healthcare | Portage | Jun 2013 | 4.1 | 79 | 5.2% | 2.8 | 3.5% |
| Bay Area Medical Center | Marinette | Dec 2012 | 4.0 | 113 | 3.5% | 1.6 | 1.4% |
| Upland Hills Health | Dodgeville | Sep 2012 | 2.7 | 45 | 6.0% | 1.9 | 4.2% |
| Richland Hospital | Richland Center | Dec 2012 | 2.6 | 35 | 7.4% | 2.0 | 5.7% |
| Beaver Dam Community Hospitals | Beaver Dam | Jun 2013 | 2.5 | 97 | 2.6% | 2.7 | 2.8% |
| Fort HealthCare | Atkinson | Sep 2012 | 1.5 | 120 | 1.3% | -2.3 | -1.9% |
| Cumberland Memorial Hospital | Cumberland | Jun 2012 | 1.0 | 22 | 4.5% | 0.9 | 4.1% |
| Moundview Memorial Hospital | Friendship | Jun 2012 | 0.6 | 15 | 4.0% | 0.5 | 3.3% |
| Community Memorial Hospital | Oconto Falls | Sep 2012 | 0.1 | 35 | 0.3% | -0.1 | -0.3% |
| Community Health Network | Berlin | Sep 2012 | (1.3) | 78 | -1.7% | -1.8 | -2.3% |
| Total all 16..Net Assets < $200 mil | 53.0 | 1,273 | 4.2% | 31.9 | 2.5% | ||
