To understand what is going on with Nebraska Non-Profit Hospital Organization Earnings, it is helpful to break them down by how financially strong the Hospitals are.....or by their Net Assets.
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.
The 9 smaller Nebraska Non-Profit Hospital Organizations with Net Assets below $100 mil generated Total Bottom Line Earnings as a % of Total Operating Revenues of a weak 2.3% in the most recent audited fiscal year. This compares to a much higher 6.4% for the 6 larger ones with Net Assets above $100 mil.
And it's the same pattern with Operating Income. The 9 smaller Nebraska Non-Profit Hospital Organizations with Net Assets below $100 mil generated Total Operating Income as a % of Total Operating Revenues of only 1.4% in the most recent audited fiscal year. This compares to a higher 3.7% for the 6 larger ones with Net Assets above $100 mil.
One of the main drivers of this dismal Total Operating Income of only $9 mil for these 9 smaller Nebraska Hospitals were Total Bad Debt Earnings Charges of $33 mil. Uncompensated Charity Care Earnings Charges were also high.
Yeah that's right, these 9 smaller Nebraska Non-Profit Hospitals generated Total Operating Income exclusive of Bad Debt Charges of $42 mil in the most recent year, which was 4.7 times the reported Total Operating Income of $9 mil.
When the 9 Nebraska Non-Profit Hospital Organizations with Net Assets of less than $100 mil are generating Total Operating Income of a very modest 1.4% of their Total Operating Revenues, then they are struggling and in need of financial help.
The best way to provide a needed financial boost is to simply Expand Medicaid in Nebraska. This will significantly reduce two Hospital Operating Statement Earnings Charges..Provisions for Bad Debts and Uncompensated Charity Care Costs.
Below here are the Bottom Line Profits in the first chart, Operating Income in the second chart and the related Operating Revenues of each in the most recent audited fiscal year available for the 15 Non-Profit Hospital Organizations headquartered in the State of Nebraska, all sorted by Net Asset size. The below amounts for Alegent Health came from the Supplementary Information supplied with the Catholic Health Initiatives June 2012 audited financial statements.
| 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 | ||||
| Nebraska Non-Profit Hospital Organizations | |||||
| Alegent Health | Omaha | Jun12 | 45.8 | 1,012 | 4.5% |
| Nebraska Medical Center | Omaha | Jun13 | 24.4 | 803 | 3.0% |
| Bryan Health | Lincoln | May13 | 61.9 | 506 | 12.2% |
| Nebraska Methodist Health | Omaha | Dec12 | 33.0 | 655 | 5.0% |
| Children's Hospital and Medical Center | Omaha | Dec12 | 40.8 | 284 | 14.4% |
| North Platte Hospital | North Platte | Dec12 | 11.5 | 145 | 7.9% |
| Faith Regional Health Services | Norfolk | Dec12 | 1.7 | 149 | 1.1% |
| Regional West Health Services | Scottsbluff | Dec11 | 5.4 | 244 | 2.2% |
| Mary Lanning Memorial Hospital | Hastings | Dec12 | 6.1 | 113 | 5.4% |
| York General Health Care Services | York | Sep12 | 1.9 | 37 | 5.1% |
| Beatrice Community Hospital and Health Center | Beatrice | Sep12 | (0.2) | 47 | -0.4% |
| Antelope Memorial Hospital | Neligh | Jun13 | 0.1 | 13 | 0.8% |
| Pender Community Hospital District | Pender | Jun12 | (1.0) | 15 | -6.7% |
| Fillmore County Hospital | Geneva | Jun12 | 0.7 | 12 | 5.8% |
| Osmond General Hospital | Osmond | Jun13 | (0.2) | 6 | -3.3% |
| Total all 15 | 231.9 | 4,041 | 5.7% |
| Most | |||||
| Recent | Operating | ||||
| Annual | Income | ||||
| Fiscal | Operating | Total | (Loss) | ||
| City | Year | Income | Operating | Margin | |
| HQs | End | (Loss) | Revenues | % | |
| mils $s | mils $s | ||||
| Nebraska Non-Profit Hospitals | |||||
| Alegent Health | Omaha | Jun12 | 34.9 | 1,012 | 3.4% |
| Nebraska Medical Center | Omaha | Jun13 | 14.8 | 803 | 1.8% |
| Bryan Health | Lincoln | May13 | 35.7 | 506 | 7.1% |
| Nebraska Methodist Health | Omaha | Dec12 | 10.3 | 655 | 1.6% |
| Children's Hospital and Medical Ctr | Omaha | Dec12 | 24.6 | 284 | 8.7% |
| North Platte Hospital | North Platte | Dec12 | 9.6 | 145 | 6.6% |
| Faith Regional Health Services | Norfolk | Dec12 | 1.2 | 149 | 0.8% |
| Regional West Health Services | Scottsbluff | Dec11 | 2.1 | 244 | 0.9% |
| Mary Lanning Memorial Hospital | Hastings | Dec12 | 4.5 | 113 | 4.0% |
| York General Health Care Services | York | Sep12 | 1.3 | 37 | 3.5% |
| Beatrice Community Hospital and Health Center | Beatrice | Sep12 | -0.4 | 47 | -0.9% |
| Antelope Memorial Hospital | Neligh | Jun13 | 0.1 | 13 | 0.8% |
| Pender Community Hospital District | Pender | Jun12 | 0.1 | 15 | 0.7% |
| Fillmore County Hospital | Geneva | Jun12 | 0.4 | 12 | 3.3% |
| Osmond General Hospital | Osmond | Jun13 | -0.2 | 6 | -3.3% |
| Total all 15 | 139.0 | 4,041 | 3.4% |
