To understand what is going on with Kansas Non-Profit Hospital Organization Earnings, it is helpful to break them down by Revenues size.
When this breakdown is done, there is one very crystal-clear conclusion...the lower the Revenues of the Non-Profit 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. For Governmental Hospitals, Interest Expense is also shown as a Non-Operating item.
The 15 smaller Kansas Non-Profit Hospitals with Revenues below $100 mil generated Total Bottom Line Profits in the most recent audited year of only $1.6 mil, which was a very dismal 0.5% of Total Operating Revenues of $337 mil. This compares to a substantially higher and superb 9.1% Total Bottom Line Profit Margin for the 8 large Kansas Non-Profit Hospital Organizations with Revenues above $100 mil.
Five of the Eight large Kansas Non-Profit Hospital Organizations registered Bottom Line Profit Margins as a % of Total Operating Revenues in the double-digit percentages in the most recent fiscal year.
On the other hand, Eight of the Fifteen smaller Kansas Non-Profit Hospital Organizations posted Bottom Line Losses in the most recent year.
The main driver of this dismal Total Bottom Line Profits of only $1.6 mil for these 15 smaller Kansas Hospitals in the most recent audited fiscal year were Total Bad Debt Earnings Charges of $31 mil. Uncompensated Charity Care Earnings Charges were also very high.
Yeah that's right, these 15 smaller Kansas Non-Profit Hospital Organizations generated Total Bottom Line Profits exclusive of Bad Debt Charges of $32.6 mil in the most recent fiscal year, which was a massive 20 times the reported Total Bottom Line Profits of $1.6 mil.
When the 15 Kansas Non-Profit Hospital Organizations with Revenues of less than $100 mil are generating Total Bottom Line Profits of a very dismal 0.5% of their Total Operating Revenues, then nearly all of the 15 are struggling severely and the only rational action is for the State of Kansas to Expand Medicaid. This will substantially reduce the two Hospital Operating Statement Earnings Charges causing the severe damage.....Provisions for Bad Debts and Uncompensated Charity Care Costs.
And it's the same income inequality pattern with Total Operating Income generated by the large and smaller Kansas Non-Profit Hospital Organizations.
The 15 smaller Kansas Non-Profit Hospital Organizations with Revenues below $100 mil generated Total Operating Income as a % of Total Operating Revenues of a dismal 1.0% in the most recent audited year. This compares to a much higher 4.3% for the 8 large Kansas Non-Profit Hospital Organizations with Revenues above $100 mil.
The 8 large Kansas Hospitals are doing fantastic.....but not the smaller 15 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 23 Non-Profit Hospital Organizations headquartered in the State of Kansas with Total Operating Revenues of more than $10 mil each in the most recent fiscal year, stratified by Revenues 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 | ||||
| Kansas Non-Profit Hospitals | |||||||
| Revenues > $100 mil | |||||||
| Univ Kansas Hosp Authority | Kansas City | Jun13 | 48.7 | 1,163 | 4.2% | 46.3 | 4.0% |
| Via Christi Health | Wichita | Sep12 | 130.7 | 1,136 | 11.5% | 32.0 | 2.8% |
| Stormant-Vail Health | Topeka | Sep12 | 57.3 | 533 | 10.8% | 32.9 | 6.2% |
| Olathe Medical Center | Olathe | Dec12 | 46.8 | 272 | 17.2% | 11.0 | 4.0% |
| Hays Medical Center | Hays | Jun13 | 12.8 | 200 | 6.4% | 6.0 | 3.0% |
| Lawrence Memorial Hosp | Lawrence | Dec12 | 12.4 | 175 | 7.1% | 11.6 | 6.6% |
| Salina Reg Health Care | Salina | Sep12 | 19.7 | 164 | 12.0% | 13.5 | 8.2% |
| Mercy Reg Health Ctr | Manhattan | Sep12 | 11.5 | 101 | 11.4% | 6.8 | 6.7% |
| Total Revenues>$100 mil | 339.9 | 3,744 | 9.1% | 160.1 | 4.3% | ||
| Revenues < $100 mil | |||||||
| Labette County Med Ctr | Parsons | Dec12 | (1.0) | 56 | -1.8% | (0.1) | -0.2% |
| Neosho Memorial Reg Med Ctr | Chanute | Dec12 | 2.4 | 42 | 5.7% | 3.1 | 7.4% |
| Southwest Medical Center | Liberal | Dec12 | 0.9 | 41 | 2.2% | 1.0 | 2.4% |
| Atchison Hospital Assoc | Atchison | Sep12 | 0.4 | 32 | 1.3% | 0.4 | 1.3% |
| Dickinson County Hosp | Abilene | Dec12 | 0.8 | 24 | 3.3% | 0.3 | 1.3% |
| Hiawatha Hospital Assoc | Hiawatha | Dec12 | (0.6) | 22 | -2.7% | (0.6) | -2.7% |
| Crawford County Hospital | Girard | Dec12 | (0.1) | 18 | -0.6% | 0.5 | 2.8% |
| Anderson County Hospital | Garnett | Dec12 | 0.3 | 17 | 1.8% | 0.3 | 1.8% |
| South Central Kansas Med Ctr | Arkansas City | Dec12 | (0.5) | 17 | -2.9% | 0.2 | 1.2% |
| Fredonia Reg Hospital | Fredonia | Dec12 | (0.1) | 12 | -0.8% | - | 0.0% |
| Meade Hospital District | Meade | Dec12 | (0.9) | 12 | -7.5% | (1.8) | -15.0% |
| Nemaha Valley Community Hosp | Seneca | Jun13 | 0.6 | 11 | 5.5% | 0.6 | 5.5% |
| Holton Community Hosp | Holton | Mar13 | 0.3 | 11 | 2.7% | 0.3 | 2.7% |
| Rooks County Health Ctr | Plainville | Dec12 | (0.2) | 11 | -1.8% | (0.4) | -3.6% |
| Wilson County Hospital | Neodesha | Dec12 | (0.7) | 11 | -6.4% | (0.4) | -3.6% |
| Total Revenues<$100 mil | 1.6 | 337 | 0.5% | 3.4 | 1.0% |
