Thursday, December 19, 2013

49% of Alabama Hospitals Post Total Bottom Line Losses of $116 Mil.....Shouting Out For Medicaid Expansion

I reviewed  certain key data related to the 90 individual Alabama Hospitals contained in the excellent American Hospital Directory's (AHD) website.  One of these Hospitals did not have any Gross Patient Revenues and thus it was excluded below.

What I found was that 44 of the 89 Alabama Hospitals, or 49% of them, posted Bottom Line Net Losses in 2012, which totaled $116 mil.  Of the 42 Alabama Hospitals with fewer than 100 beds, 25 of them, or 60% of them, posted Bottom Line Losses in the most recent reported year.

Below here from the AHD website are the 44 Alabama Hospitals registering Bottom Line Losses totaling $116 mil in the most recent year reported:


Alabama # of Net
Alabama Hospital Name City Beds (Loss)



$000s




Fayette Medical Center Fayette       164         (24,780)
UAB Hospital Highlands Birmingham        73           (8,209)
Eliza Coffee Memorial Hospital Florence       358           (7,324)
Walker Baptist Medical Center Jasper       175           (5,216)
North Baldwin Infirmary Bay Minette        70           (4,752)
Saint Vincent's Saint Clair Pell City        40           (4,601)
Shelby Baptist Medical Center Alabaster       193           (4,506)
Shoals Hospital Muscle Shoals       184           (4,185)
University of South Alabama Medical Center Mobile       131           (4,179)
LV Stabler Memorial Hospital Greenville        57           (4,144)
DeKalb Regional Medical Center Fort Payne       115           (3,718)
Northwest Medical Center Winfield        71           (3,647)
Thomas Hospital Fairhope       129           (3,457)
Bryan W. Whitfield Memorial Hospital Demopolis        99           (3,117)
North Mississippi Medical Center - Hamilton Hamilton       115           (3,089)
Saint Vincent's Blount Oneonta        40           (2,975)
RMC of Jacksonville Jacksonville        69           (2,312)
Russellville Hospital Russellville        92           (2,281)
Monroe County Hospital Monroeville        94           (2,247)
Prattville Baptist Hospital Prattville        56           (2,097)
Cherokee Medical Center Centre        45           (1,949)
Clay County Hospital Ashland       129           (1,857)
Decatur General Decatur       196           (1,548)
Parkway Medical Center Decatur       120           (1,534)
Community Hospital Tallassee        47           (1,154)
Troy Regional Medical Center Troy        97              (991)
Wiregrass Medical Center Geneva       185              (912)
Lawrence Medical Center Moulton        37              (899)
Helen Keller Hospital Sheffield       185              (582)
Medical Center Enterprise Enterprise       131              (543)
Elmore Community Hospital Wetumpka        33              (510)
Hill Hospital Of Sumter County York        33              (485)
Coosa Valley Medical Center Sylacauga       217              (439)
Lanier Health Services Valley       187              (398)
Grove Hill Memorial Hospital Grove Hill        33              (375)
Lakeland Community Hospital Haleyville        59              (322)
Jackson Medical Center Jackson        35              (301)
Dale Medical Center Ozark        89              (300)
Citizens Baptist Medical Center Talladega        96              (181)
Hale County Hospital Greensboro        28              (103)
Bibb Medical Center Centreville       156                (59)
D.W. McMillan Memorial Hospital Brewton        49                (55)
Georgiana Hospital Georgiana        22                (32)
Highlands Medical Center Scottsboro       220                (11)



   
Total all 44
   4,754       (116,376)

All 89 Alabama Hospitals Generated Total Bottom Line Profits of $317 mil in the most recent year reported, for an overall Average Hospital Net Income of only $3,558,000.

To get a better understanding of what's going on financially with all 89 Alabama Hospitals, it is wise to break them down by Number-of-Bed Size.

Eight of the 89 had Bed Sizes of more than 400.  These 8 largest Alabama Hospitals generated an Average Hospital Net Income of $34,141,000.
 
On the other hand, the other 81 with Bed Sizes below 400 generated an Average Hospital Net Income of $537,000, only 1.6% of the $34,141,000.  Yes, there is a major problem with Alabama Hospital Income Inequality, just like there is with US citizens. 

23 of the 89 had Bed Sizes of more than 200.  These 23 largest Alabama Hospitals generated an Average Hospital Net Income of $15,635,000.
 
On the other hand, the other 66 with Bed Sizes below 200 generated an Average Hospital Net Loss of $651,000.  Yes, there is a major problem with Alabama Hospital Income Inequality, just like there is with US citizens. 

UAB Hospital generated Bottom Line Profits of $79,290,000, which was 82% higher than the $43,518,000 of Total Bottom Line Profits of the 81 Hospitals having less than 400 beds each.  Yes, there is a major problem with Alabama Hospital Income Inequality, just like there is with US citizens.

Huntsville Hospital generated Bottom Line Profits of $61,798,000, which was 42% higher than the $43,518,000 of Total Bottom Line Profits of the 81 Hospitals having less than 400 beds each.  Yes, there is a major problem with Alabama Hospital Income Inequality, just like there is with US citizens.

US Health Care and its giant costs will not be fixed until the profits and losses of both the bottom rungs and the top rungs of the profit and loss ladders of Hospitals all throughout the US are properly and equitably fixed. 

The main driver of these very weak profit numbers for the overwhelming majority of these Alabama Hospitals were the very high percentage of uninsured and underinsured Alabama residents, particularly in the many smaller Alabama communities and also in several urban areas, with the resultant abnormally high levels of both Total Bad Debt Earnings Charges and Uncompensated Charity Care Earnings Charges relative to Net Patient Revenues.

The best way to provide the needed financial boost to all Alabama Hospitals, but especially to the many small ones, is to simply Expand Medicaid Fully in Alabama.  This will substantially reduce two Hospital Operating Statement Earnings Charges.....Provisions for Bad Debts and Uncompensated Charity Care Costs, thereby substantially boosting Earnings of these Alabama Hospitals. 

Frankly I think that by Alabama Government Leaders refusing to Expand Medicaid, they are not acting in the best interests of a clear majority of their State's citizens.  Let me explain. 

First, it's the present high percentage of Alabama residents who are either Uninsured or Underinsured, most of whom would be getting fair and decent health care coverage with the Affordable Care Act in combination with the Full Expansion of Medicaid.

Second, as explained earlier, all Alabama Hospitals, but especially ones providing emergency care to the many indigent populations in the smaller rural areas and in several urban areas, will have their Bottom Line Earnings as well as their Net Assets, or measure of financial strength, substantially bolstered with Full Medicaid Expansion.

Granted these two huge Hospital Earnings Charges.....Provision for Bad Debts and Uncompensated Charity Care Costs.....will not be totally eliminated with Full Expansion of Medicaid in Alabama, but a substantial portion of them will be.

And third, many of these Alabama Hospitals are Government Hospitals, with many of them being at least partially financed with taxes paid by Alabama citizens.  Full Expansion of Medicaid should substantially improve the Earnings and Losses now being registered by these Alabama Governmental Hospitals.  Thus it is only logical that not as many taxes will be needed after Full Expansion of Medicaid in Alabama.  So it's not just the presently uninsured and underinsured who will benefit from the Full Medicaid Expansion in Alabama.  So will all Alabama taxpayers who in all fairness should be getting tax cuts.
 
From the excellent AHD website, below here are the Number of Beds and Net Income or Net Losses of each of these 89 Alabama individual Hospitals in 2012, presented in declining bed size:




Net

Alabama # of Income
Alabama Hospital Name City Beds (Loss)



$000s




UAB Hospital Birmingham    1,138           79,290
Huntsville Hospital Huntsville       838           61,798
Mobile Infirmary Medical Center Mobile       704           33,795
Brookwood Medical Center Birmingham       631           20,579
DCH Regional Medical Center Tuscaloosa       615           16,516
Saint Vincent's Birmingham Birmingham       442           32,042
Baptist Medical Center South Montgomery       423           16,881
Southeast Alabama Medical Center Dothan       420           12,226
Trinity Medical Center Birmingham       369             2,427
Eliza Coffee Memorial Hospital Florence       358           (7,324)
Providence Hospital Mobile       349           19,379
Saint Vincent's East Birmingham       311             5,187
Gadsden Regional Medical Center Gadsden       300             7,133
Princeton Baptist Birmingham       292             7,755
East Alabama Medical Center Opelika       284             6,519
Riverview Regional Medical Center Gadsden       281             7,782
Jackson Hospital Montgomery       255           16,244
Regional Medical Center Anniston Anniston       252               429
Flowers Hospital Dothan       235           18,837
UAB Medical West Bessemer       229             2,021
Highlands Medical Center Scottsboro       220                (11)
Coosa Valley Medical Center Sylacauga       217              (439)
Marshall Medical Center South Boaz       204               542
Decatur General Decatur       196           (1,548)
Shelby Baptist Medical Center Alabaster       193           (4,506)
Springhill Medical Center Mobile       193               605
Lanier Health Services Valley       187              (398)
Helen Keller Hospital Sheffield       185              (582)
Wiregrass Medical Center Geneva       185              (912)
Shoals Hospital Muscle Shoals       184           (4,185)
Walker Baptist Medical Center Jasper       175           (5,216)
Fayette Medical Center Fayette       164         (24,780)
Vaughan Regional Medical Center Selma       159             4,337
Bibb Medical Center Centreville       156                (59)
Crestwood Medical Center Huntsville       150           12,154
Baptist Medical Center East Montgomery       149           13,754
Medical Center Enterprise Enterprise       131              (543)
University of South Alabama Medical Center Mobile       131           (4,179)
Clay County Hospital Ashland       129           (1,857)
Thomas Hospital Fairhope       129           (3,457)
Stringfellow Memorial Hospital Anniston       125             6,013
Parkway Medical Center Decatur       120           (1,534)
Cullman Regional Medical Center Cullman       115             3,434
DeKalb Regional Medical Center Fort Payne       115           (3,718)
North Mississippi Medical Center - Hamilton Hamilton       115           (3,089)
South Baldwin Regional Medical Center Foley       112             3,256
Athens-Limestone Hospital Athens       101             2,189
Bryan W. Whitfield Memorial Hospital Demopolis        99            (3,117)
Troy Regional Medical Center Troy        97              (991)
Citizens Baptist Medical Center Talladega        96              (181)
Monroe County Hospital Monroeville        94           (2,247)
Russellville Hospital Russellville        92           (2,281)
Marshall Medical Center North Guntersville        90             4,180
Mizell Memorial Hospital Opp        90             1,057
Andalusia Regional Hospital Andalusia        89             1,566
Dale Medical Center Ozark        89              (300)
Greene County Hospital Eutaw        86                 44
Russell Medical Center Alexander City        75               906
UAB Hospital Highlands Birmingham        73           (8,209)
Northwest Medical Center Winfield        71           (3,647)
North Baldwin Infirmary Bay Minette        70           (4,752)
RMC of Jacksonville Jacksonville        69           (2,312)
Jack Hughston Memorial Hospital Phenix City        66               952
Lakeland Community Hospital Haleyville        59              (322)
LV Stabler Memorial Hospital Greenville        57           (4,144)
Prattville Baptist Hospital Prattville        56           (2,097)
Bullock County Hospital Union Springs        54             2,457
Pickens County Medical Center Carrollton        50               214
Atmore Community Hospital Atmore        49               179
Crenshaw Community Hospital Luverne        49               262
D.W. McMillan Memorial Hospital Brewton        49                (55)
Community Hospital Tallassee        47           (1,154)
Medical Center Barbour Eufaula        47             4,429
Lake Martin Community Hospital Dadeville        46                 98
Cherokee Medical Center Centre        45           (1,949)
Evergreen Medical Center Evergreen        44               402
Saint Vincent's Blount Oneonta        40           (2,975)
Saint Vincent's Saint Clair Pell City        40           (4,601)
Lawrence Medical Center Moulton        37              (899)
Jackson Medical Center Jackson        35              (301)
Wedowee Hospital Wedowee        34               483
Elmore Community Hospital Wetumpka        33              (510)
Grove Hill Memorial Hospital Grove Hill        33              (375)
Hill Hospital Of Sumter County York        33              (485)
Hale County Hospital Greensboro        28              (103)
Florala Memorial Hospital Florala        22                 51
Georgiana Hospital Georgiana        22                (32)
John Paul Jones Hospital Camden        21               587
Callahan Eye Foundation Hospital Birmingham        12             2,030



   
Total all 89
 15,354         316,645




Average Hospital Net Income

            3,558






More details to come.