One reason US Hospital bills are so high is that many of the larger Hospitals Systems set their pricing for hospital procedures so that they make a lot of money.
Thus, US Hospitals are playing a key role in ultimately determining whether health insurance premiums are fairly priced on the health insurance exchanges.
Many Virginia Hospital Organizations are being very greedy in generating very high operating profits. But many others are not.
The State of Virginia is being very transparent with its citizens by having available for review annually at its Health Information website very detailed financial information on each of its 81 Short-term Acute Care and Critical Access Hospitals.
22 of these 81 Virginia Hospitals generated Operating Profit Margins of more than 10.0% in the most recent year, for a Total Operating Margin of a very steep 13.5%.
On the other hand, a card deck size of 52 of these 81 Hospitals posted Operating Profit Margins in the most recent year below 8.0%, with a resultant Total Operating Profit Margin of a very modest 3.2%.
And 38 of these 81 Virginia Hospitals registered Operating Profit Margins under 5.0% in the most recent year.
With many of these Virginia Hospitals generating Operating Income Margins below 5.0% and even some others just above 5.0%, a key beneficiary of this will be Virginia citizens buying health insurance on the Federal insurance exchange. These Virginia 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 Federal insurance exchange.
Another factor which will help keep insurance premium prices reasonable in the health insurance exchange is that there is a good chance that Virginia will be wisely electing to expand Medicaid, especially since 28 of these 81 Virginia Hospitals had Operating Losses in the most recent year. This Medicaid Expansion would increase Virginia Hospital profits substantially and thus permit Virginia 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 Federal Insurance Exchange.
So just how much would Virginia Hospital Profits increase due to the ACA and the Expansion of Medicaid?
All 81 Virginia Hospitals generated Total Operating Income of $1.253 bil in the most recent year, which included an Earnings Charge of $1.152 bil due to Provisions for Bad Debts. Thus their Total Operating Income Before these Bad Debt Charges were $2.405 bil. In addition, their Total Uncompensated Charity Care Charges Foregone were another $2.348 bil in the most recent year.
Granted not all of these two huge Earnings Charges will be eliminated with ACA and Medicaid Expansion, but a substantial portion of them will.
Below here are Audited Operating Income, Total Operating Revenues and Operating Income Profit (Loss) Margin Percentage in the most recent year for each of these 81 Virginia Hospitals:
| Operating | ||||
| Operating | Total | Income | ||
| Income | Operating | (Loss) | ||
| Virginia Hospital | City | (Loss) | Revenues | Margin |
| $000s | $000s | % | ||
| Bath County Community Hospital | Hot Springs | (2,506) | 11,224 | -22.3% |
| Southern Virginia Reg Medical Ctr | Emporia | (5,812) | 29,133 | -19.9% |
| Smyth County Community Hospital | Marion | (6,026) | 32,279 | -18.7% |
| Cumberland Hospital for Children | New Kent | (3,928) | 22,431 | -17.5% |
| Spotsylvania Regional Med Center | Fredericksburg | (13,680) | 80,897 | -16.9% |
| Southampton Memorial Hospital | Franklin | (6,040) | 36,093 | -16.7% |
| Dickenson Community Hospital | Clintwood | (672) | 4,885 | -13.8% |
| Mountain View Reg Medical Ctr | Norton | (3,045) | 22,216 | -13.7% |
| Russell County Medical Center | Lebanon | (2,562) | 23,366 | -11.0% |
| Riverside Shore Memorial Hospital | Nassawadox | (5,104) | 47,193 | -10.8% |
| Twin County Regional Hospital | Galax | (3,141) | 30,195 | -10.4% |
| Bon Secours DePaul Medical Ctr | Norfolk | (15,217) | 148,102 | -10.3% |
| Stafford Hospital Center | Stafford | (5,732) | 70,157 | -8.2% |
| Valley Health Shenandoah Meml Hosp | Woodstock | (3,342) | 43,177 | -7.7% |
| Buchanan General Hospital | Grundy | (1,522) | 21,251 | -7.2% |
| Page Memorial Hospital | Luray | (1,046) | 21,971 | -4.8% |
| Danville Regional Medical Center | Danville | (5,680) | 132,084 | -4.3% |
| Wellmont Lonesome Pine Hospital | Big Stone Gap | (1,440) | 35,485 | -4.1% |
| John Randolph Medical Center | Hopewell | (2,723) | 67,403 | -4.0% |
| Valley Health Warren Memorial Hosp | Front Royal | (1,172) | 52,143 | -2.2% |
| Mary Washington Hospital | Fredericksburg | (7,980) | 396,872 | -2.0% |
| Pioneer Community Hospital Patrick | Stuart | (99) | 10,087 | -1.0% |
| Inova Mount Vernon Hospital | Alexandria | (1,094) | 157,818 | -0.7% |
| Carilion Giles Community Hospital | Pearisburg | (122) | 24,815 | -0.5% |
| Johnston Memorial Hospital | Abingdon | (285) | 113,623 | -0.3% |
| Carilion Tazewell Community Hosp | Tazewell | (26) | 11,786 | -0.2% |
| Rappahannock General Hospital | Kilmarnock | (31) | 33,447 | -0.1% |
| Chesapeake Regional Medical Ctr | Chesapeake | (153) | 240,298 | -0.1% |
| Carilion Stonewall Jackson Hospital | Lexington | 351 | 27,996 | 1.3% |
| Bon Secours Maryview Medical Ctr | Portsmouth | 3,701 | 289,467 | 1.3% |
| Culpeper Regional Hospital | Culpeper | 1,264 | 65,416 | 1.9% |
| Fauquier Hospital | Warrenton | 3,139 | 126,530 | 2.5% |
| Carilion Medical Center | Roanoke | 30,069 | 891,333 | 3.4% |
| Sentara Obici Hospital | Suffolk | 6,586 | 158,320 | 4.2% |
| Valley Health Winchester Medical Ctr | Winchester | 21,056 | 471,317 | 4.5% |
| LewisGale Hospital Pulaski | Pulaski | 1,917 | 40,954 | 4.7% |
| Sentara Northern Virginia Med Ctr | Woodbridge | 9,428 | 194,177 | 4.9% |
| Halifax Regional Hospital | South Boston | 3,789 | 76,951 | 4.9% |
| Memorial Hosp Martinsville&Henry Co | Martinsville | 5,319 | 105,695 | 5.0% |
| Sentara Williamsburg Reg Med Ctr | Williamsburg | 7,154 | 141,124 | 5.1% |
| Centra Southside Community Hosp | Farmville | 2,575 | 50,359 | 5.1% |
| Rockingham Memorial Hospital | Harrisonburg | 18,357 | 342,417 | 5.4% |
| Carilion Franklin Memorial Hospital | Rocky Mount | 1,860 | 34,361 | 5.4% |
| LewisGale Hospital-Alleghany | Low Moor | 2,286 | 41,519 | 5.5% |
| Sentara Princess Anne Hospital | Virginia Beach | 10,460 | 176,227 | 5.9% |
| Martha Jefferson Hospital | Charlottesville | 15,872 | 242,696 | 6.5% |
| Bon Secours Richmond Community Hosp | Richmond | 3,635 | 54,374 | 6.7% |
| Riverside Tappahannock Hospital | Tappahannock | 2,700 | 40,006 | 6.7% |
| University of Virginia Medical Center | Charlottesville | 80,612 | 1,151,873 | 7.0% |
| Inova Fairfax Hospital | Falls Church | 89,506 | 1,162,538 | 7.7% |
| Children's Hosp The King's Daughters | Norfolk | 22,129 | 282,772 | 7.8% |
| Virginia Hospital Center | Arlington | 28,780 | 362,969 | 7.9% |
| Bon Secours St. Francis Medical Ctr | Midlothian | 17,886 | 222,344 | 8.0% |
| Bon Secours Memorial Reg Med Ctr | Mechanicsville | 25,735 | 319,619 | 8.1% |
| Southside Regional Medical Center | Petersburg | 15,316 | 176,918 | 8.7% |
| Sentara Norfolk General Hospital | Norfolk | 60,007 | 657,418 | 9.1% |
| Bon Secours St. Mary's Hospital | Richmond | 44,342 | 469,948 | 9.4% |
| Sentara Virginia Beach General Hosp | Virginia Beach | 24,195 | 250,996 | 9.6% |
| Centra Health | Lynchburg | 47,001 | 473,615 | 9.9% |
| Bon Secours Mary Immaculate Hosp | Newport News | 17,281 | 166,265 | 10.4% |
| Sentara Careplex Hospital | Hampton | 22,912 | 215,637 | 10.6% |
| VCU Health System | Richmond | 121,185 | 1,099,566 | 11.0% |
| Henrico Doctors' Hospital | Richmond | 50,319 | 454,474 | 11.1% |
| Inova Alexandria Hospital | Alexandria | 36,664 | 321,648 | 11.4% |
| Clinch Valley Medical Center | Richlands | 6,850 | 59,908 | 11.4% |
| Inova Loudon Hospital | Leesburg | 29,303 | 236,721 | 12.4% |
| Wythe County Community Hospital | Wytheville | 5,268 | 42,104 | 12.5% |
| Norton Community Hospital | Norton | 6,766 | 51,911 | 13.0% |
| LewisGale Medical Center | Salem | 36,570 | 275,058 | 13.3% |
| CJW Medical Center | Richmond | 85,160 | 628,950 | 13.5% |
| Community Memorial Healthcenter | South Hill | 8,102 | 59,162 | 13.7% |
| Prince William Hospital | Manassas | 28,812 | 200,626 | 14.4% |
| Augusta Health | Fishersville | 33,177 | 230,941 | 14.4% |
| Carilion New River Valley Med Ctr | Christiansburg | 21,648 | 150,079 | 14.4% |
| Sentara Leigh Hospital | Norfolk | 34,449 | 233,680 | 14.7% |
| LewisGale Hospital Montgomery | Blacksburg | 13,490 | 85,726 | 15.7% |
| Inova Fair Oaks Hospital | Fairfax | 42,989 | 264,553 | 16.2% |
| Reston Hospital Center | Reston | 51,200 | 281,318 | 18.2% |
| Riverside Walter Reed Hospital | Gloucester | 10,467 | 54,593 | 19.2% |
| Riverside Regional Medical Center | Newport News | 77,380 | 400,516 | 19.3% |
| Bedford Memorial Hospital | Bedford | 6,126 | 29,150 | 21.0% |
