These 4 large Iowa Non-Profit Hospital Organizations generated a Total Operating Income of $131 mil in the most recent year reported, which was an exceptionally modest 2.5% of Total Operating Revenues of $5.175 bil.
There were very modest Operating Income Margins all across the board, with the highest one being only 4.3%.
With all 4 of these large Iowa Non-Profit Hospital Organizations generating Operating Income Margins of 4.3% or below, a key beneficiary of this will be Iowa citizens buying health insurance on the Health Insurance Exchange. These Iowa Hospitals, for the most part, will not be baking in excessive Hospital profits demands in their negotiations with health insurance companies on pricing for hospital procedures which ultimately determines what insurance premiums are set by health insurance companies on the Health Insurance exchange.
Another factor which will drive down insurance premium prices even more in the health insurance exchange is that Iowa is fully expanding Medicaid. This will increase Iowa Hospital profits substantially and thus permit Iowa Hospitals to be even more reasonable in their negotiations with health insurance companies on pricing for hospital procedures which ultimately drives what health insurance premiums are set at by health insurers on the Insurance Exchange.
So just how much will Iowa Hospital Profits increase due to the ACA and the Expansion of Medicaid?
Well, these 4 large Iowa Non-Profit Hospital Organization's audited financial statements show it will be huge.
For these 4 large Iowa Non-Profit Hospital Organizations, Total Operating Income was $131 mil in the most recent fiscal year. Driving down this Total Operating Income were Total Provisions for Bad Debts was $232 mil. Thus Total Operating Income Before Bad Debt Charges was $363 mil, which was 2.8 times the reported Total operating Income of $131 mil. In addition, Total Uncompensated Charity Care Costs Incurred was also very large.
Granted not all of these two Earnings Charges will be eliminated with ACA and Medicaid Expansion, but a substantial portion of them will.
Below here are the Audited Operating Income or Loss, Total Operating Revenues and Operating Income (Loss) Margin Percentage in the most recent year for each of these 4 large Iowa Non-Profit Hospital Organizations:
|mils $s||mils $s||%|
|Iowa Non-Profit Hospital Organizations|
|UnityPoint Health||Des Moines||61.4||2,733||2.2%|
|Univ Iowa Hospitals & Clinics||Iowa City||46.7||1,098||4.3%|
|Mercy Medical Center Iowa||Various*||5.7||792||0.7%|
|Total all 4||131.1||5,175||2.5%|
*Mercy Medical Center has the following major facilities in Iowa: Mason City, Sioux Falls, Dubuque and Clinton.