To understand what is going on with Alabama 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. And for Governmental Hospitals, Interest Expense is also a Non-Operating item.
On a Bottom Line Profits basis, here is a summary of the most recent audited annual earnings results of these Hospital Organizations by Net Asset size:
Net Assets > $400 Mil.......Total Bottom Line Income as % of Total Revenues..9.8%
Net Assets $200-400 Mil...Total Bottom Line Income as % of Total Revenues..4.4%
Net Assets $100-200 Mil...Total Bottom Line Income as % of Total Revenues..3.0%
Net Assets < $100 Mil.......Total Bottom Line Income as % of Total Revenues...0.3%
When the 7 Alabama Hospital Organizations with Net Assets of less than $100 mil are generating Total Bottom Line Income of a very dismal 0.3% of their Total Operating Revenues, then they are struggling and need financial help. This compares to a substantially higher 9.8% for the 3 largest Alabama Non-Profit Hospital Organizations with Net Assets above $400 mil.
The main driver of this dismal Total Bottom Line Income of only $0.9 mil for these 7 smaller Alabama Hospital Organizations in the most recent audited fiscal year were Total Bad Debt Earnings Charges of $70 mil.
Yeah that's right, these 7 smaller Alabama Non-Profit Hospital Organizations generated Total Bottom Line Profits exclusive of Bad Debt Charges of $70.9 mil in the most recent fiscal year, which was nearly 78 times the reported Total Bottom Line Profits of $0.9 mil.
Uncompensated Charity Care Earnings Charges were also very high.
The best way to provide this needed financial boost is to simply Expand Medicaid in Alabama. This will substantially reduce two Hospital Operating Statement Earnings Charges.....Provisions for Bad Debts and Uncompensated Charity Care Costs.
The largest Alabama Hospitals are doing just fine.....but clearly not the smallest ones.
From a review of audited financial statements in the Electronic Municipal Market Access (EMMA), below here are the Bottom Line Profits and Operating Revenues of the 18 Non-Profit Hospital Organizations headquartered in the State of Alabama with Total Operating Revenues of more than $10 mil each in the most recent fiscal year, stratified by Net Asset size:
| Most | |||||
| Recent | Bottom | ||||
| Annual | Bottom | Line | |||
| Fiscal | Line | Total | Profit | ||
| City | Year | Net | Operating | Margin | |
| HQs | End | Income | Revenues | % | |
| mils $s | mils $s | ||||
| Alabama Hospital Organizations | |||||
| Net Assets > $400 mil | |||||
| UAB Health | Birmingham | Sep 2012 | 174 | 1,203 | 14.5% |
| Children's Hospital Alabama | Birmingham | Dec 2012 | 64 | 563 | 11.4% |
| City of Huntsville Health Care Auth | Huntsville | Jun 2013 | 29 | 969 | 3.0% |
| Total 3 With Net Assets> $400 mil | 267 | 2,735 | 9.8% | ||
| Net Assets $200-400 Mil | |||||
| DCH Health Care Authority | Tuscaloosa | Sep 2012 | 23 | 454 | 5.1% |
| Infirmary Health System | Mobile | Mar 2013 | 12 | 597 | 2.0% |
| Houston County Health Auth | Dothan | Sep 2012 | 6 | 283 | 2.1% |
| Noland Health Services | Birmingham | Jun 2013 | 24 | 139 | 17.3% |
| Total 4 With Net Assets $200-400 mil | 65 | 1,473 | 4.4% | ||
| Net Assets $100-200 Mil | |||||
| Baptist Health System | Birmingham | Dec 2012 | 7.2 | 529 | 1.4% |
| East Alabama Health Care Auth | Opelika | Sep 2012 | 12.3 | 276 | 4.5% |
| Baptist Health Care Authority | Montgomery | Jun 2013 | 24.4 | 544 | 4.5% |
| Marshall County Health Auth | Guntersville | Sep 2012 | 0.7 | 130 | 0.5% |
| Total 4 With Net Assets $100-200 mil | 44.6 | 1,479 | 3.0% | ||
| Net Assets < $100 Mil | |||||
| Cullman County Health Care Auth | Cullman | Jun 2013 | 2.9 | 93 | 3.1% |
| Colbert County NW Health Care Auth | Sheffield | Sep 2012 | (2.4) | 99 | -2.4% |
| Jackson County Health Care Auth | Scottsboro | Sep 2012 | (1.1) | 52 | -2.1% |
| Bibb County Health Care Auth | Centreville | Sep 2012 | 1.0 | 14 | 7.1% |
| Henry County Health Care Auth | Abbeville | Jun 2012 | (0.3) | 11 | -2.7% |
| Monroe County Health Care Auth | Monroeville | Sep 2012 | (0.7) | 21 | -3.3% |
| Sylacauga Health Care Auth | Sylacauga | July 2012 | 1.5 | 54 | 2.8% |
| Total 7 With Net Assets < $100 Mil | 0.9 | 344 | 0.3% |
