Friday, December 6, 2013

Mississippi Non-Profit Hospital Dismal Operating Results Show Need For Medicaid Expansion.....An Update

From a review of audited financial statements in the Electronic Municipal Market Access (EMMA), I found 11 Non-Profit Hospital Organizations headquartered in the State of Mississippi with Total Operating Revenues of more than $10 mil each in the most recent audited fiscal year.

How did they do on the profit front in the aggregate?  Well, just like its neighboring state across the Mississippi River.....Louisiana.....just horribly any way you look at it, and for the same reason.....such a high percentage of State residents who are either Uninsured or Underinsured.

These 11 Mississippi Non-Profit Hospital Organizations registered Total Operating Losses of $112 mil in the most recent audited fiscal year, which was a very dismal negative (3.2)% of Total Operating Revenues.

The University of Mississippi Medical Center generated an Operating Loss of a huge $163 mil.

Only one of these 11 Mississippi Hospital Organization generated an Operating Profit Margin above 5.0% of Operating Revenues, and that one.....King's Daughters Medical Center....generated an Operating Profit Margin of only 5.3%.

The main driver of these dismal Total Operating Losses of $112 mil for these 11 Mississippi Hospital Organizations in the most recent audited fiscal year was Total Bad Debt Earnings Charges of $559 mil.  Uncompensated Charity Care Earnings Charges were also very high.  These two earnings charges were especially so huge because the State of Mississippi has such a high percentage of both Uninsured and Underinsured residents.

With these horrible operating results, nearly all of these Mississippi Hospitals are severely suffering financially.

The best way to provide the desperately needed financial boost to prop up these suffering hospitals is to simply Expand Medicaid in Mississippi.  This will substantially reduce two Hospital Operating Statement Earnings Charges.....Provisions for Bad Debts and Uncompensated Charity Care Costs.

Below here are the Operating Income (Losses) and Operating Revenues of these 11 Non-Profit Hospital Organizations headquartered in the State of Mississippi with Total Operating Revenues of more than $10 mil each in the most recent fiscal year:

Most




Recent
Operating


Annual
Income

Fiscal  Operating  Total (Loss)

City Year  Income  Operating  Margin 

HQs End  (Loss)  Revenues  % 



mils $s mils $s    
Mississippi Non-Profit Hospital Organizations









Forrest County General Hospital Hattiesburg Sep12       17.9        435 4.1%
North Mississippi Health Services Tupelo Sep12         8.9        758 1.2%
Magnolia Regional Health Center Corinth Sep12         6.8        153 4.4%
Mississippi Baptist Health Systems Jackson Aug12         4.6        417 1.1%
South Central Regional Medical Center Laurel Sep12         3.8        138 2.8%
King's Daughters Medical Center Brookhaven Sep12         3.7          70 5.3%
Delta Regional Medical Center Greenville Sep12         3.7        128 2.9%
Southwest Mississippi Regional Medical Center McComb Sep12         2.7        137 2.0%
Natchez Regional Medical Center Natchez Sep11         1.2          46 2.6%
Singing River Health Pascagoula Sep12        (2.3)        380 -0.6%
University Mississippi Medical Center Jackson Jun12     (163.4)        836 -19.5%






Total all 11

    (112.4)      3,498 -3.2%

The University of Mississippi Medical Center had Total Provision for Bad Debts Earnings Charge of $152 mil and also had high Uncompensated Charity Care Costs in the most recent audited fiscal year.  If Medicaid were Expanded in Mississippi, the University of Mississippi Medical Center's large $163 mil Operating Loss would be substantially reduced and that should also benefit the State of Mississippi's financial coffers and thus also Mississippi citizens.



Bottom Line Operating Results, which are a combination of Operating Income or Loss and Non-Operating Income or Loss, were also very weak across the board.

These 11 Mississippi Non-Profit Hospital Organizations registered Total Bottom Line Profits which were a very modest 2.3% of Total Operating Revenues in the most recent audited fiscal year.   And the highest Bottom Line Profit Margin was only 6.1% of Operating Revenues.

Total Provision for Bad Debts Earnings Charge was $559 mil in the most recent audited fiscal year, substantially burdening the Total Bottom Line Income of $79 mil.  Thus Total Bottom Line Income exclusive of these Provision for Bad Debts Earnings Charges were $638 mil, which was 8 times the reported Total Bottom Line Income.  

Below here are the Bottom Line Profits (Losses) and Operating Revenues of each of these 11 Non-Profit Hospital Organizations headquartered in the State of Mississippi for the most recent audited fiscal year:

Most

Bottom


Recent Bottom
Line


Annual Line
Profit

Fiscal Net Total (Loss)

City Year Income Operating Margin

HQs End (Loss) Revenues %



mils $s mils $s
Mississippi Non-Profit Hospital Organizations










North Mississippi Health Services Tupelo Sep12       38.2        758 5.0%
Forrest County General Hospital Hattiesburg Sep12       18.6        435 4.3%
Mississippi Baptist Health Systems Jackson Aug12       13.7        417 3.3%
King's Daughters Medical Center Brookhaven Sep12         4.3          70 6.1%
Delta Regional Medical Center Greenville Sep12         2.9        128 2.3%
Magnolia Regional Health Center Corinth Sep12         2.8        153 1.8%
South Central Regional Medical Center Laurel Sep12         2.8        138 2.0%
University Mississippi Medical Center Jackson Jun12         1.7        836 0.2%
Southwest Mississippi Reg Medical Ctr McComb Sep12        (0.8)        137 -0.6%
Natchez Regional Medical Center Natchez Sep11        (0.9)          46 -2.0%
Singing River Health Pascagoula Sep12        (4.1)        380 -1.1%






Total all 11

      79.2      3,498 2.3%