How have these 81 Virginia Hospitals done on the Bottom Line Earnings front? Exceptionally well, with 2012 Total Bottom Line Earnings of $1.516 bil, which was a very robust 9.2% of Total Operating Revenues of $16.565 bil.
Leading the earnings charge were the 9 Hospitals in the Northern Virginia DC Area, which generated a Bottom Line Profit Margin of 12.5%, followed by the 14 Hospitals in the Virginia Central Area, mostly the Richmond Area, which generated a Bottom Line Profit Margin of 10.2%.
To show how very robust these Virginia Profit Margins are, the 30 prestigious Dow Industrial companies combined generated a 9.6% Profit Margin in the most recent year reported. The CEOs and CFOs of these 30 Dow Industrial companies must be shaking their heads at how these 80 Virginia Hospitals combined, predominantly Non-Profit ones, can generate such incredibly high Bottom Line Profit Margins. It gives a clue as to why the country's health care costs are so high as compared with all other major countries. So many Non-Profit Hospitals generate these incredibly high profits year after year, and retain them, increasing their huge treasure chest of investments in debt and equity securities, which have advanced dramatically during the Obama Administration.
From the financial information in Virginia's Health Information website, below here are the Bottom Line Profits, Total Operating Revenues and Bottom Line Profit Margin Percentage for each of these 80 Virginia Hospitals, sorted by Region:
| Net | ||||
| Net | Total | Income | ||
| Income | Operating | (Loss) | ||
| Virginia Hospital | City | (Loss) | Revenues | Margin |
| $000s | $000s | % | ||
| North | ||||
| Inova Alexandria Hospital | Alexandria | 36,799 | 321,648 | 11.4% |
| Inova Fair Oaks Hospital | Fairfax | 43,104 | 264,553 | 16.3% |
| Inova Fairfax Hospital | Falls Church | 89,815 | 1,162,538 | 7.7% |
| Inova Loudon Hospital | Leesburg | 41,181 | 236,721 | 17.4% |
| Inova Mount Vernon Hospital | Alexandria | (1,012) | 157,818 | -0.6% |
| Prince William Hospital | Manassas | 39,300 | 200,626 | 19.6% |
| Reston Hospital Center | Reston | 51,200 | 281,318 | 18.2% |
| Sentara Northern Virginia Med Ctr | Woodbridge | 4,425 | 194,177 | 2.3% |
| Virginia Hospital Center | Arlington | 91,682 | 362,969 | 25.3% |
| Total all 9 | 396,494 | 3,182,368 | 12.5% | |
| Northwest | ||||
| Augusta Health | Fishersville | 64,470 | 230,941 | 27.9% |
| Bath County Community Hospital | Hot Springs | 1,426 | 11,224 | 12.7% |
| Carilion Stonewall Jackson Hospital | Lexington | 2,019 | 27,996 | 7.2% |
| Culpeper Regional Hospital | Culpeper | 2,912 | 65,416 | 4.5% |
| Fauquier Hospital | Warrenton | 7,172 | 126,530 | 5.7% |
| Martha Jefferson Hospital | Charlottesville | 28,468 | 242,696 | 11.7% |
| Mary Washington Hospital | Fredericksburg | (7,834) | 396,872 | -2.0% |
| Page Memorial Hospital | Luray | (1,046) | 21,971 | -4.8% |
| Rockingham Memorial Hospital | Harrisonburg | 29,368 | 342,417 | 8.6% |
| Spotsylvania Regional Med Center | Fredericksburg | (13,680) | 80,897 | -16.9% |
| Stafford Hospital Center | Stafford | (5,732) | 70,157 | -8.2% |
| University of Virginia Medical Center | Charlottesville | 88,469 | 1,151,873 | 7.7% |
| Valley Health Shenandoah Hosp | Woodstock | (3,342) | 43,177 | -7.7% |
| Valley Health Warren Meml Hosp | Front Royal | (1,172) | 52,143 | -2.2% |
| Valley Health Winchester Med Ctr | Winchester | 50,522 | 471,317 | 10.7% |
| Total all 15 | 242,020 | 3,335,627 | 7.3% | |
| Central | ||||
| Bon Secours Memorial Reg Med Ctr | Mechanicsville | 18,749 | 319,619 | 5.9% |
| Bon Secours Richmond Comm Hosp | Richmond | 3,527 | 54,374 | 6.5% |
| Bon Secours St. Francis Medical Ctr | Midlothian | 15,370 | 222,344 | 6.9% |
| Bon Secours St. Mary's Hospital | Richmond | 60,427 | 469,948 | 12.9% |
| Centra Southside Community Hosp | Farmville | 7,510 | 50,359 | 14.9% |
| CJW Medical Center | Richmond | 85,160 | 628,950 | 13.5% |
| Community Memorial Healthcenter | South Hill | 8,365 | 59,162 | 14.1% |
| Cumberland Hospital for Children | New Kent | (3,928) | 22,431 | -17.5% |
| Halifax Regional Hospital | South Boston | 5,836 | 76,951 | 7.6% |
| Henrico Doctors' Hospital | Richmond | 50,319 | 454,474 | 11.1% |
| John Randolph Medical Center | Hopewell | (2,723) | 67,403 | -4.0% |
| Southern Virginia Reg Medical Ctr | Emporia | (5,812) | 29,133 | -19.9% |
| Southside Regional Medical Center | Petersburg | 15,251 | 176,918 | 8.6% |
| VCU Health System | Richmond | 121,606 | 1,099,566 | 11.1% |
| Total all 14 | 379,657 | 3,731,632 | 10.2% | |
| Southwest | ||||
| Bedford Memorial Hospital | Bedford | 7,197 | 29,150 | 24.7% |
| Buchanan General Hospital | Grundy | (845) | 21,251 | -4.0% |
| Carilion Franklin Memorial Hospital | Rocky Mount | 2,025 | 34,361 | 5.9% |
| Carilion Giles Community Hospital | Pearisburg | (626) | 24,815 | -2.5% |
| Carilion Medical Center | Roanoke | 73,580 | 891,333 | 8.3% |
| Carilion New River Valley Med Ctr | Christiansburg | 30,249 | 150,079 | 20.2% |
| Carilion Tazewell Community Hosp | Tazewell | (25) | 11,786 | -0.2% |
| Centra Health | Lynchburg | 41,169 | 473,615 | 8.7% |
| Clinch Valley Medical Center | Richlands | 6,850 | 59,908 | 11.4% |
| Danville Regional Medical Center | Danville | (5,680) | 132,084 | -4.3% |
| Dickenson Community Hospital | Clintwood | (484) | 4,885 | -9.9% |
| Johnston Memorial Hospital | Abingdon | (1,230) | 113,623 | -1.1% |
| LewisGale Hospital-Alleghany | Low Moor | 2,286 | 41,519 | 5.5% |
| LewisGale Hospital Montgomery | Blacksburg | 13,490 | 85,726 | 15.7% |
| LewisGale Hospital Pulaski | Pulaski | 1,917 | 40,954 | 4.7% |
| LewisGale Medical Center | Salem | 36,579 | 275,058 | 13.3% |
| Meml Hosp Martinsville&Henry Co. | Martinsville | 5,319 | 105,695 | 5.0% |
| Mountain View Reg Medical Ctr | Norton | (3,045) | 22,216 | -13.7% |
| Norton Community Hospital | Norton | 7,401 | 51,911 | 14.3% |
| Pioneer Community Hospital Patrick | Stuart | (99) | 10,087 | -1.0% |
| Russell County Medical Center | Lebanon | (2,584) | 23,366 | -11.1% |
| Smyth County Community Hospital | Marion | (4,810) | 32,279 | -14.9% |
| Twin County Regional Hospital | Galax | (3,136) | 30,195 | -10.4% |
| Wellmont Lonesome Pine Hospital | Big Stone Gap | (1,440) | 35,485 | -4.1% |
| Wythe County Community Hospital | Wytheville | 5,268 | 42,104 | 12.5% |
| Total all 25 | 209,326 | 2,743,485 | 7.6% | |
| East | ||||
| Bon Secours DePaul Medical Ctr | Norfolk | (14,604) | 148,102 | -9.9% |
| Bon Secours Mary Immaculate Hosp | Newport News | 18,455 | 166,265 | 11.1% |
| Bon Secours Maryview Medical Ctr | Portsmouth | 9,846 | 289,467 | 3.4% |
| Chesapeake Regional Medical Center | Chesapeake | 2,471 | 240,298 | 1.0% |
| Children's Hosp King's Daughters | Norfolk | 25,229 | 282,772 | 8.9% |
| Rappahannock General Hospital | Kilmarnock | 838 | 33,447 | 2.5% |
| Riverside Regional Medical Center | Newport News | 77,380 | 400,516 | 19.3% |
| Riverside Shore Memorial Hospital | Nassawadox | (5,104) | 47,193 | -10.8% |
| Riverside Tappahannock Hospital | Tappahannock | 2,700 | 40,006 | 6.7% |
| Riverside Walter Reed Hospital | Gloucester | 10,467 | 54,593 | 19.2% |
| Sentara Careplex Hospital | Hampton | 22,904 | 215,637 | 10.6% |
| Sentara Leigh Hospital | Norfolk | 34,460 | 233,680 | 14.7% |
| Sentara Norfolk General Hospital | Norfolk | 60,288 | 657,418 | 9.2% |
| Sentara Obici Hospital | Suffolk | 7,013 | 158,320 | 4.4% |
| Sentara Princess Anne Hospital | Virginia Beach | 10,603 | 176,227 | 6.0% |
| Sentara Virginia Beach General Hosp | Virginia Beach | 24,680 | 250,996 | 9.8% |
| Sentara Williamsburg Reg Med Ctr | Williamsburg | 7,147 | 141,124 | 5.1% |
| Southampton Memorial Hospital | Franklin | (6,045) | 36,093 | -16.7% |
| Total all 18 | 288,728 | 3,572,154 | 8.1% | |
| Grand Total all 81 | 1,516,225 | 16,565,266 | 9.2% |
When I stratify these 81 Virginia Hospitals by Staffed Bed Size, here's what I get:
| # of | # of Hospital | Bottom Line |
| Hospitals | Staffed Beds | Profit Margin % |
| 24 | More Than 200 | 9.7% |
| 44 | More Than 100 | 9.8% |
| 37 | Less Than 100 | 3.7% |
| 19 | Less Than 50 | 4.2% |
Clearly, there is a huge difference between the Bottom Line Margin Margin % of the Virginia Hospitals with more than 100 Staffed Beds and those with less than 100 Staffed Beds.
But what really drives these Bottom Line Profit Margins are Net Assets.....the best measure of a Hospital's financial strength. When I stratify these 81 Virginia Hospitals by Net Asset amount, here's what I get:
| # of | Net Assets | Bottom Line | |
| Hospitals | $ mils | Profit Margin % | |
| 16 | More Than $300 mil | 12.0% | |
| 22 | More Than $200 mil | 11.8% | |
| 31 | More Than $100 mil | 11.2% | |
| 50 | Less Than $100 mil | 3.0% | |
| 37 | Less Than $50 mil | 0.0% | |
| 22 | Less Than $20 mil | -4.1% |
When you have 37 of the 81 Hospitals generating a Total Bottom Line Profit Margin of 0.0%, you have a substantial problem with your financially weak Hospitals.
And when you have 22 of the 37 financially weak Virginia Hospitals generating a Total Bottom Line Loss Margin of a negative (4.1)%, you have an even more substantial problem with your exceedingly financially weak Hospitals.....and these Hospitals need a huge dose of financial adrenalin.
The main driver of these very weak profit numbers for the many Virginia Hospitals were the high percentage of uninsured and underinsured Virginia residents, particularly in the many smaller Virginia communities and also in urban areas, with the resultant abnormally high levels of both Total Bad Debt Earnings Charges and Uncompensated Charity Care Earnings Charges relative to Net Patient Revenues.
The best way to provide the needed financial boost to all Virginia Hospitals, but especially to the many small ones and ones in urban areas, is to simply Expand Medicaid Fully in Virginia. This will substantially reduce two Hospital Operating Statement Earnings Charges.....Provisions for Bad Debts and Uncompensated Charity Care Costs, thereby substantially boosting Earnings of these Virginia Hospitals.
Most of the present high percentage of Virginia residents who are either Uninsured or Underinsured will get fair and decent health care coverage with the Affordable Care Act in combination with the Full Expansion of Medicaid.
Also, all Virginia Hospitals, but especially ones providing emergency care to the many indigent populations in the smaller rural areas and in urban areas, will have their Bottom Line Earnings as well as their Net Assets, or measure of financial strength, substantially bolstered with Full Medicaid Expansion.
So, just how large are these two Hospital Earnings Charges.....the Provision For Bad Debts and the Uncompensated Charity Costs Charges?
Well, the cool thing here is that with its financial transparency, Virginia Health Information has disclosed the amounts of these two Earnings Charges for each of its 81 Virginia Short-term Acute and Critical Access Hospitals.
All 81 Virginia Hospitals generated Total Bottom Line Earning of $1.516 bil in 2012, which included an Earnings Charge of $1.152 bil due to Provisions for Bad Debts. Thus their Total Earnings Before these Bad Debt Charges were $2.668 bil. In addition, their Total Uncompensated Charity Care Charges Foregone were another $2.348 bil in 2012.
Granted all of these two huge Earnings Charges will not be eliminated with Full Expansion of Medicaid in Virginia, but a substantial portion of them will be.
There were 25 Virginia Hospitals generating Losses with an Average Hospital Net Loss of $(3,842,000). On the other hand, the most profitable 25 Virginia Hospitals had an Average Hospital Net Income of $55,020,000.
Yes, there is a major problem with Virginia Hospital Income Inequality, just like there is with US citizens.
US Health Care and its giant costs will not be fixed until the profits and losses of both the bottom rungs and the top rungs of the profit and loss ladders of Hospitals all throughout the US are properly and equitably fixed.
