To understand what is going on with Missouri Non-Profit Hospital Organization Earnings, it is helpful to break them down by how financially strong the Hospitals are.....or by their Net Assets (the Excess of Total Assets over Total Liabilities).
When this breakdown is done, there is one very crystal-clear conclusion.......the weaker the financial strength 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 from Stocks and Bonds, or their equivalents.
The 28 smaller Missouri Non-Profit Hospital Organizations with Net Assets below $400 mil each generated Total Bottom Line Profits as a % of Total Operating Revenues of a dismal 1.9% in the most recent audited fiscal year. This compares to a much higher 7.1% for the 10 large Missouri Non-Profit Hospital Organizations with Net Assets above $400 mil.
Yeah, the 10 large Missouri Hospitals are doing just great.....but clearly not most of the 28 smaller ones.
The main driver of this dismal Total Operating Income of $70.2 mil for these 28 smaller Missouri Hospitals in the most recent audited fiscal year were Total Bad Debt Earnings Charges of $346 mil.
Yeah that's right, these 28 smaller Missouri Non-Profit Hospital Organizations generated Total Bottom Line Profits exclusive of Bad Debt Charges of $416.2 mil in the most recent fiscal year, which was nearly 6 times the reported Total Bottom Line Profits of $70.2 mil.
Uncompensated Charity Care Earnings Charges were also very high.
When the 28 Missouri Non-Profit Hospital Organizations with Net Assets of less than $400 mil each are generating Total Bottom Line Profits of a very modest 1.9% of their Total Operating Revenues, then they are struggling and in dire need of financial help.
The best way to provide this needed financial boost is to simply Expand Medicaid in Missouri. This will substantially reduce two Hospital Operating Statement Earnings Charges.....Provisions for Bad Debts and Uncompensated Charity Care Costs.
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 38 Non-Profit Hospital Organizations headquartered in the State of Missouri 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 | ||||
| Missouri Hospital Organizations | |||||
| Net Assets > $400 mil | |||||
| Ascension Health | Edmundson | Jun 2013 | 1,123 | 17,097 | 6.6% |
| BJC Healthcare | St Louis | Dec 2012 | 362 | 3,849 | 9.4% |
| Mercy Health | Chesterfield | Jun 2012 | 299 | 4,113 | 7.3% |
| SSM HealthCare | St Louis | Dec 2012 | 206 | 3,327 | 6.2% |
| CoxHealth | Springfield | Sep 2013 | 118 | 1,019 | 11.6% |
| Children's Mercy Hospitals | Kansas City | Jun 2012 | 82 | 1,123 | 7.3% |
| St Luke's Health System | Kansas City | Dec 2012 | 65 | 1,237 | 5.3% |
| Heartland Regional Medical Center | St Joseph | Jun 2013 | 61 | 550 | 11.1% |
| Saint Francis Medical Center | Cape Girardeau | Jun 2013 | 48 | 427 | 11.2% |
| North Kansas City Hospital | Kansas City | Jun 2013 | 7 | 433 | 1.6% |
| Total all 10..Net Assets >$400 mil | 2,371 | 33,175 | 7.1% | ||
| Net Assets < $400 mil | |||||
| Freeman Health | Joplin | Mar 2013 | 19.5 | 500 | 3.9% |
| SoutheastHEALTH | Cape Girardeau | Dec 2012 | 19.1 | 313 | 6.1% |
| Boone Hospital Center | Columbia | Dec 2012 | 14.0 | 305 | 4.6% |
| St Luke's Health Corp | Chesterfield | Jun 2012 | 10.0 | 436 | 2.3% |
| Hannibal Regional Hospital | Hannibal | Sep 2012 | 6.8 | 112 | 6.1% |
| Capital Region Medical Center | Jefferson City | Jun 2013 | 6.1 | 154 | 4.0% |
| Golden Valley Memorial District | Clinton | Mar 2013 | 5.2 | 75 | 6.9% |
| Phelps County Regional Medical Center | Rolla | Dec 2012 | 5.0 | 187 | 2.7% |
| Cass Regional Medical Center | Harrisonville | Dec 2012 | 3.6 | 58 | 6.2% |
| Cameron Regional Medical Center | Cameron | Sep 2012 | 3.3 | 47 | 7.0% |
| Fitzgibbon Memorial Hospital | Marshall | Apr 2013 | 2.9 | 54 | 5.4% |
| New Liberty Hospital District | Liberty | Jun 2012 | 1.8 | 187 | 1.0% |
| Western Missouri Medical Center | Warrensburg | Dec 2012 | 1.8 | 78 | 2.3% |
| Nevada City Hospital | Nevada | Jun 2012 | 1.8 | 36 | 5.0% |
| Bothwell Regional Health Center | Sedalia | May 2012 | 1.1 | 92 | 1.2% |
| Citizens Memorial Hosp District | Bolivar | May 2013 | 0.7 | 106 | 0.7% |
| Skaggs Community Hospital | Branson | Apr 2012 | 0.4 | 150 | 0.3% |
| Madison Memorial Hospital | Fredericktown | Sep 2012 | 0.4 | 17 | 2.4% |
| Ste. Genevieve County Memorial Hospital | Ste. Genevieve | Apr 2013 | 0.2 | 34 | 0.6% |
| Harrison County Community Hosp District | Bethany | Mar 2012 | - | 15 | 0.0% |
| Lincoln County Memorial Hospital | Troy | Dec 2012 | (0.5) | 34 | -1.5% |
| Wright Memorial Hospital | Trenton | Dec 2012 | (0.6) | 25 | -2.4% |
| Hermann Area District Hospital | Hermann | Dec 2012 | (0.7) | 16 | -4.4% |
| Washington County Memorial Hospital | Potosi | Aug 2012 | (1.0) | 24 | -4.2% |
| Barton County Memorial Hospital | Lamar | Dec 2012 | (1.0) | 26 | -3.8% |
| Audrain Health Care | Mexico | Dec 2012 | (2.8) | 52 | -5.4% |
| Lake Region Health | Osage Beach | Apr 2013 | (3.3) | 162 | -2.0% |
| St Anthony's Medical Center | St Louis | Jun 2012 | (23.6) | 439 | -5.4% |
| Total all 28..Net Assets < $400 mil | 70.2 | 3,734 | 1.9% |
