To understand what is going on with North Carolina 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 13 smaller North Carolina Non-Profit Hospital Organizations with Net Assets below $400 mil generated Total Operating Income as a % of Total Operating Revenues of a dismal 1.9% in the most recent audited fiscal year. This compares to a much higher 4.6% for the 14 large ones with Net Assets above $400 mil.
The main driver of this dismal Total Operating Income of only $43 mil for these 13 smaller North Carolina Hospitals were Total Bad Debt Earnings Charges of $335 mil. Uncompensated Charity Care Earnings Charges were also very high.
Yeah that's right, these 13 smaller North Carolina Non-Profit Hospitals generated Total Operating Income exclusive of Bad Debt Charges of $378 mil in the most recent year, which was nearly 9 times the reported Total Operating Income of $43 mil.
When the 13 North Carolina Non-Profit Hospital Organizations with Net Assets of less than $400 mil are generating Total Operating Income 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 a needed financial boost is to simply Expand Medicaid in North Carolina. This will substantially reduce two Hospital Operating Statement Earnings Charges..Provisions for Bad Debts and Uncompensated Charity Care Costs.
And it's the same income inequality pattern with Bottom Line Profits. The 13 smaller North Carolina Non-Profit Hospital Organizations with Net Assets below $400 mil generated Total Bottom Line Profits as a % of Total Operating Revenues of 5.4% in the most recent audited fiscal year. This compares to a much higher 8.7% for the 14 large ones with Net Assets above $400 mil.
The 14 large North Carolina Hospitals are doing great..but not the 13 smaller 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 27 Non-Profit Hospital Organizations headquartered in the State of North Carolina with Total Operating Revenues of more than $10 mil each in the most recent fiscal year, stratified by Net Asset 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 | ||||
| North Carolina Non-Profit Hospitals | |||||||
| Net Assets > $400 mil | |||||||
| Duke University Health | Durham | Jun13 | 440 | 2,539 | 17.3% | 184 | 7.2% |
| Carolinas Health Care | Charlotte | Dec12 | 375 | 4,194 | 8.9% | 168 | 4.0% |
| Novant Health | Winston-Salem | Dec12 | 274 | 3,555 | 7.7% | 185 | 5.2% |
| Univ N Carolina Hosps | Chapel Hill | Jun13 | 152 | 1,212 | 12.5% | 114 | 9.4% |
| Vidant Health | Greenville | Sep12 | 125 | 1,551 | 8.1% | 112 | 7.2% |
| WakeMed Health | Raleigh | Sep12 | 88 | 1,089 | 8.1% | 55 | 5.1% |
| Cone Health | Greensboro | Sep12 | 83 | 1,022 | 8.1% | 21 | 2.1% |
| Mission Health System | Asheville | Sep12 | 81 | 1,054 | 7.7% | 56 | 5.3% |
| CaroMont Health | Gastonia | Jun13 | 66 | 484 | 13.6% | 17 | 3.5% |
| Rex Healthcare | Raleigh | Jun13 | 46 | 731 | 6.3% | 45 | 6.2% |
| Cape Fear Valley Health | Fayetteville | Sep12 | 46 | 703 | 6.5% | 14 | 2.0% |
| New Hanover | Wilmington | Sep12 | 40 | 667 | 6.0% | 29 | 4.3% |
| FirstHealth Carolinas | Pinehurst | Sep12 | 29 | 525 | 5.5% | 25 | 4.8% |
| Wake Forest Baptist Hosp | Winston-Salem | Jun13 | (5) | 1,895 | -0.3% | (57) | -3.0% |
| Total Net Assets>$400mil | 1,840 | 21,221 | 8.7% | 968 | 4.6% | ||
| Net Assets < $400 mil | |||||||
| Southeastern Reg Med Ctr | Lumberton | Sep12 | 36.7 | 286 | 12.8% | 13.9 | 4.9% |
| Nash Health Care | Rocky Mount | Dec12 | 18.3 | 220 | 8.3% | 1.9 | 0.9% |
| Blue Ridge Healthcare | Morganton | Dec12 | 15.8 | 224 | 7.1% | 8.2 | 3.7% |
| Wayne Health | Goldsboro | Sep12 | 14.2 | 213 | 6.7% | 11.6 | 5.4% |
| Wilson Medical Center | Wilson | Sep12 | 13.4 | 137 | 9.8% | 1.8 | 1.3% |
| ARMC Health Care | Burlington | Dec12 | 12.5 | 251 | 5.0% | 4.8 | 1.9% |
| Chatham Memorial Hosp | Elkin | Sep12 | 7.0 | 85 | 8.2% | 0.5 | 0.6% |
| Stanley Health Services | Albemarle | Sep12 | 3.2 | 135 | 2.4% | 2.5 | 1.9% |
| Appalachian Reg Hlthcare | Boone | Sep12 | 2.6 | 154 | 1.7% | 4.9 | 3.2% |
| Harnett Health | Dunn | Sep12 | 1.6 | 87 | 1.8% | 1.1 | 1.3% |
| Halifax Reg Med Ctr | Roanoke Rapids | Sep12 | 1.4 | 94 | 1.5% | - | 0.0% |
| Scotland Healthcare | Laurinburg | Sep12 | - | 123 | 0.0% | (2.4) | -2.0% |
| High Point Reg Health | High Point | Sep12 | (4.0) | 275 | -1.5% | (6.2) | -2.3% |
| Total Net Assets<$400 mil | 122.7 | 2,284 | 5.4% | 42.6 | 1.9% | ||
