These 9 Arkansas Non-Profit Hospital Organizations generated a Total Operating Loss of $(15) mil in the most recent year reported, which was a negative (0.9)% of Total Operating Revenues of $1.736 bil. Baptist Health was the driver of this Total Loss.
There were very modest Operating Income Margins across the board, with the highest one being only 4.6%.
With all of these Arkansas Hospitals generating either Operating Losses or such incredibly low Operating Income Margins, a key beneficiary of this will be Arkansas citizens buying health insurance on the Health Insurance Exchange. These Arkansas 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 Arkansas is in essence fully expanding Medicaid. This will increase Arkansas Hospital profits substantially and thus permit Arkansas 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 Arkansas Hospital Profits increase due to the ACA and the Expansion of Medicaid?
Well, these 9 Arkansas Hospital Organization's audited financial statements show it will be just huge.
For these 9 Arkansas Hospital Organizations, Total Operating Loss was $(15) mil in the most recent fiscal year. Causing this Operating Loss were Total Provisions for Bad Debts of $170 mil and Uncompensated Charity Care Costs Incurred of another $52 mil. Thus Total Operating Income exclusive of these two Earnings Charges was $207 mil, which was an earnings improvement of $222 mil from the reported Total Operating Loss of $(15) mil.
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 9 Arkansas Non-Profit Hospital Organizations:
| Operating | ||||
| Operating | Total | Income | ||
| City | Income | Operating | (Loss) | |
| HQs | (Loss) | Revenues | Margin | |
| mils $s | mils $s | % | ||
| Arkansas Non-Profit Hospital Organizations | ||||
| Jefferson Hospital Association | Pine Bluff | (4.4) | 179 | -2.5% |
| Baptist Health | Little Rock | (16.1) | 837 | -1.9% |
| Conway Regional Medical Ctr | Conway | (2.6) | 136 | -1.9% |
| Baxter Regional Health | Mountain Home | (0.4) | 162 | -0.2% |
| Arkansas Methodist Hospital | Paragould | 0.3 | 64 | 0.5% |
| White River Health | Batesville | 1.9 | 170 | 1.1% |
| Saline County Medical | Benton | 2.4 | 84 | 2.8% |
| North Arkansas Medical | Harrison | 2.5 | 76 | 3.3% |
| Mena Hospital | Mena | 1.3 | 28 | 4.6% |
| Total all 9 | (15.1) | 1,736 | -0.9% | |
