How have these 129 Hospitals done on the Bottom Line Earnings front?
Fantastically, with Total Bottom Line Earnings as a Percentage of Total Operating Revenues of 9.8% in the most recent year reported. To show how very robust this 9.8% is, the 30 prestigious Dow Industrial companies combined generated a lower 9.6% in the most recent year reported. The CEOs and CFOs of these 30 Dow Industrial companies must be shaking their heads at how the 129 Wisconsin 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.
Included in these 129 Wisconsin Hospitals are 4 which are Orthopedic or other Special Surgery Hospitals. When I remove these 4, the remaining 125 Wisconsin Hospitals generated a still very robust Bottom Line Profit Margin of 9.5%.
I have studied a lot of the Hospitals in nearly all of the US States. And one clear conclusion is that so many of the smaller hospitals are really struggling.
Of these 125 Wisconsin Hospitals, 56 of them, or 45% of them, have 25 or fewer "Set Up and Staffed" Hospital Beds. I find it incredible how Wisconsin Hospitals in total could generate a Bottom Line Profit Margin of 9.5% when 45% of its Hospitals are very small ones.
When I stratify these 125 Wisconsin Hospitals by Bed Size, here's what I get:
| Total | ||
| Bottom | ||
| Line | ||
| # of | Profit | |
| # of | Hospital | Margin |
| Hospitals | Beds | % |
| 35 | 100 or More | 10.0% |
| 34 | Between 25 and 100 | 7.8% |
| 56 | 25 or Less | 8.8% |
When the 56 smallest Wisconsin Hospitals with 25 or fewer beds generate a Total Bottom Line Profit Margin of 8.8% in the most recent year reported, then the State of Wisconsin is doing a fantastic job with its smaller Hospitals. I think other States having so many of their smallest Hospitals struggling so much should consider consulting with the State of Wisconsin as to why it has been so successful in this regard. And the US Government should consider doing likewise.
OK, so the size of Hospitals isn't driving significantly the Bottom Line Profit Margin.
So what is?
Clearly it's financial strength or Net Asset size.
When I stratify these 125 Wisconsin Hospitals by Net Asset amounts, here's what I get:
| Total | ||
| Bottom | ||
| Line | ||
| Net | Profit | |
| # of | Assets | Margin |
| Hospitals | $ mils | % |
| 14 | > $300 mil | 12.6% |
| 28 | Between $100 mil and $300 mil | 8.6% |
| 25 | Between $50 mil and $100 mil | 7.0% |
| 24 | Between $20 mil and $50 mil | 7.3% |
| 34 | $20 mil or Less | 1.0% |
| 23 | < $10 mil | 0.0% |
As you can see from the above chart, financial strength or Net Asset amounts are clearly driving Wisconsin Hospital Bottom Line Profit Margin Percentages, just like they are all over the country.
What's happening here with US Non-Profit Hospitals is precisely what is happening with US citizens. The very wealthy ones continue to get more wealthy, and the financially weak ones remain where they are and some even slip some.
From the financial information in Wisconsin's Health Dept website, below here are the Net Assets, Bottom Line Profits, Total Operating Revenues and Bottom Line Profit Margin Percentage for each of these 125 Wisconsin Hospitals, presented in declining Net Assets amount:
| Net | |||||
| Net | Total | Income | |||
| Wisconsin | Net | Income | Operating | (Loss) | |
| Wisconsin Hospital Name | City | Assets | (Loss) | Revenues | Margin |
| $ mils | $ mils | $ mils | % | ||
| Aurora St Luke's Medical Center | Milwaukee | 1,630 | 111.0 | 1,026 | 10.8% |
| Children's Hospital of Wisconsin | Milwaukee | 978 | 47.1 | 537 | 8.8% |
| Froedtert Memorial Lutheran Hospital | Milwaukee | 834 | 91.7 | 960 | 9.6% |
| UW Hospitals & Clinics | Madison | 775 | 101.5 | 1,201 | 8.4% |
| Gundersen Health System | La Crosse | 648 | 116.1 | 391 | 29.7% |
| Aurora West Allis Medical Center | West Allis | 427 | 50.6 | 243 | 20.8% |
| Waukesha Memorial Hospital | Waukesha | 425 | 95.2 | 429 | 22.2% |
| St. Mary's Hospital Medical Center | Madison | 397 | 49.6 | 406 | 12.2% |
| Mayo Clinic Health in Eau Claire | Eau Claire | 361 | 45.7 | 262 | 17.5% |
| Aurora Medical Center in Kenosha | Kenosha | 356 | 47.0 | 152 | 31.0% |
| Ministry Saint Joseph's Hospital | Marshfield | 324 | 43.8 | 353 | 12.4% |
| Sacred Heart Hospital | Eau Claire | 321 | 24.8 | 212 | 11.7% |
| Wheaton Franciscan-All Saints | Racine | 311 | 21.8 | 366 | 5.9% |
| Meriter Hospital | Madison | 306 | 35.0 | 432 | 8.1% |
| St. Vincent Hospital | Green Bay | 298 | 13.1 | 254 | 5.2% |
| United Hospital System | Kenosha | 284 | 25.7 | 284 | 9.1% |
| Columbia St Mary's-Ozaukee Campus | Mequon | 284 | 6.1 | 163 | 3.7% |
| Aurora Medical Center in Grafton | Grafton | 264 | 14.0 | 143 | 9.8% |
| Aspirus Wausau Hospital | Wausau | 259 | 29.7 | 352 | 8.5% |
| Aurora Medical Center in Summit | Summit | 243 | 6.4 | 97 | 6.6% |
| Wheaton Franciscan-Elmbrook Campus | Brookfield | 233 | 18.7 | 136 | 13.7% |
| Agnesian HealthCare/St. Agnes Hospital | Fond du Lac | 226 | 19.7 | 294 | 6.7% |
| Bellin Hospital | Green Bay | 226 | 17.7 | 350 | 5.1% |
| Columbia St. Mary's Hospital | Milwaukee | 225 | (4.8) | 443 | -1.1% |
| Aurora Sheboygan Meml Medical Ctr | Sheboygan | 219 | 32.2 | 136 | 23.7% |
| St. Croix Regional Medical Center | St. Croix Falls | 212 | 3.0 | 62 | 4.8% |
| Aurora Lakeland Medical Center | Elkhorn | 174 | 11.3 | 78 | 14.5% |
| Aurora Memorial Hospital of Burlington | Burlington | 164 | 10.2 | 74 | 13.8% |
| Aurora BayCare Med Center Green Bay | Green Bay | 162 | 64.4 | 279 | 23.1% |
| Aurora Medical Center in Aurora | Oshkosh | 145 | 16.1 | 99 | 16.3% |
| Riverview Hospital Association | Wisconsin Rapids | 142 | 7.5 | 86 | 8.7% |
| Community Memorial | Menomonee Falls | 138 | 20.8 | 174 | 12.0% |
| Monroe Clinic | Monroe | 137 | 7.7 | 163 | 4.7% |
| Appleton Medical Center | Appleton | 134 | 19.2 | 224 | 8.6% |
| Mercy Hospital and Trauma Center | Janesville | 134 | 13.2 | 392 | 3.4% |
| Mayo Clinic Health-Franciscan Health | La Crosse | 126 | 23.4 | 213 | 11.0% |
| Ministry Saint Michael's Hospital | Stevens Point | 121 | 15.3 | 177 | 8.6% |
| Aurora Medical Ctr Manitowoc County | Two Rivers | 121 | 9.5 | 59 | 16.1% |
| Theda Clark Medical Center | Neenah | 120 | 22.9 | 178 | 12.9% |
| Oconomowoc Memorial Hospital | Oconomowoc | 120 | 6.3 | 93 | 6.8% |
| Mayo Clinic Health-Red Cedar | Menomonee | 107 | 13.1 | 91 | 14.4% |
| Holy Family Memorial | Manitowoc | 106 | 5.0 | 127 | 3.9% |
| Aurora Medical Center in Hartford | Hartford | 96 | 5.7 | 53 | 10.7% |
| Fort HealthCare | Fort Atkinson | 94 | 5.1 | 123 | 4.2% |
| Bay Area Medical Center | Marinette | 93 | 4.0 | 113 | 3.6% |
| Ministry Health's Young Med Ctr | Woodruff | 93 | 9.1 | 60 | 15.0% |
| Beloit Health System | Beloit | 91 | 7.9 | 191 | 4.1% |
| St. Mary's Hospital Medical Center | Green Bay | 87 | 4.6 | 115 | 4.0% |
| UW Health Partners Reg Med Ctr | Watertown | 87 | 5.2 | 96 | 5.4% |
| Sauk Prairie Memorial Hospital | Prairie du Sac | 79 | 5.6 | 62 | 9.1% |
| River Falls Area Hospital | River Falls | 79 | 9.6 | 46 | 21.2% |
| Langlade Hospital-An Aspirus Partner | Antigo | 76 | 8.7 | 74 | 11.7% |
| Wheaton Franciscan-St. Joseph | Milwaukee | 75 | (0.1) | 275 | 0.0% |
| St. Nicholas Hospital | Sheboygan | 73 | (4.6) | 60 | -7.6% |
| St. Joseph's Hospital | Chippewa Falls | 72 | 6.0 | 69 | 8.8% |
| New London Family Medical Center | New London | 70 | 11.9 | 30 | 39.2% |
| Lakeview Medical Center | Rice Lake | 67 | 4.4 | 65 | 6.8% |
| Beaver Dam Community Hospitals | Beaver Dam | 66 | 5.9 | 80 | 7.3% |
| Ministry Saint Mary's Hospital | Rhinelander | 66 | (1.2) | 116 | -1.0% |
| Memorial Medical Center | Ashland | 65 | 10.0 | 58 | 17.3% |
| Ministry Door County Medical Center | Sturgeon Bay | 63 | 5.7 | 69 | 8.3% |
| Divine Savior Healthcare | Portage | 62 | 4.6 | 71 | 6.5% |
| Riverside Medical Center | Waupaca | 61 | 9.3 | 35 | 26.5% |
| St. Joseph's Community Hospital | West Bend | 59 | 3.3 | 84 | 4.0% |
| St. Elizabeth Hospital | Appleton | 56 | 24.4 | 173 | 14.1% |
| Vernon Memorial Healthcare | Viroqua | 55 | 6.0 | 64 | 9.3% |
| St. Clare Hospital and Health Services | Baraboo | 54 | 4.9 | 60 | 8.3% |
| Memorial Health Ctr-Aspirus Partner | Medford | 49 | 3.1 | 51 | 6.1% |
| Upland Hills Health | Dodgeville | 48 | 3.3 | 39 | 8.5% |
| The Richland Hospital | Richland Center | 46 | 2.6 | 35 | 7.3% |
| Prairie du Chien Memorial Hospital | Prairie du Chien | 42 | 4.7 | 34 | 13.8% |
| Hudson Hospital & Clinics | Hudson | 40 | 3.6 | 52 | 7.0% |
| Mayo Clinic Health-Northland in Barron | Barron | 38 | 3.9 | 56 | 7.0% |
| Southwest Health Center | Platteville | 38 | (2.0) | 27 | -7.4% |
| Reedsburg Area Medical Center | Reedsburg | 35 | 2.1 | 45 | 4.8% |
| Tomah Memorial Hospital | Tomah | 35 | 5.1 | 36 | 14.2% |
| Ministry Good Samaritan Health Cntr | Merrill | 33 | 0.9 | 25 | 3.6% |
| Mercy Medical Center | Oshkosh | 30 | 4.6 | 110 | 4.2% |
| Hayward Area Memorial Hospital | Hayward | 29 | 3.1 | 33 | 9.4% |
| Black River Memorial Hospital | Black River Falls | 28 | 3.5 | 40 | 8.9% |
| Calumet Medical Center | Chilton | 28 | 1.2 | 22 | 5.5% |
| Columbus Community Hospital | Columbus | 28 | 2.7 | 29 | 9.0% |
| Mile Bluff Medical Center | Mauston | 28 | 1.4 | 53 | 2.6% |
| Stoughton Hospital Association | Stoughton | 28 | 1.8 | 38 | 4.6% |
| St. Mary's Hospital of Superior | Superior | 28 | 10.2 | 44 | 23.2% |
| Berlin Memorial Hospital | Berlin | 27 | 0.0 | 67 | 0.0% |
| Mayo Clinic Health-Chippewa Bloomer | Bloomer | 22 | 1.8 | 36 | 5.1% |
| Grant Regional Health Center | Lancaster | 22 | 3.3 | 20 | 16.2% |
| Waupun Memorial Hospital | Waupun | 22 | 7.6 | 40 | 18.8% |
| Baldwin Area Medical Center | Baldwin | 21 | 4.4 | 32 | 13.8% |
| Shawano Medical Center | Shawano | 21 | 0.6 | 36 | 1.6% |
| Ministry Eagle River Memorial Hospital | Eagle River | 20 | (0.5) | 15 | -3.7% |
| Amery Regional Medical Center | Amery | 19 | 1.6 | 51 | 3.1% |
| Westfields Hospital | New Richmond | 19 | 2.6 | 32 | 8.1% |
| Columbia Center | Mequon | 18 | (0.9) | 7 | -13.2% |
| Community Memorial Hospital | Oconto Falls | 17 | 0.1 | 35 | 0.3% |
| Osceola Medical Center | Osceola | 17 | 2.2 | 30 | 7.3% |
| Spooner Health System | Spooner | 17 | 2.6 | 18 | 15.0% |
| Memorial Medical Center | Neillsville | 14 | (1.9) | 20 | -9.5% |
| Rusk County Memorial Hospital&Nursing Home | Ladysmith | 12 | 2.3 | 19 | 11.9% |
| Cumberland Memorial Hospital | Cumberland | 11 | 2.3 | 19 | 12.3% |
| Mayo Clinic Health-Oakridge in Osseo | Osseo | 10 | 1.4 | 19 | 7.4% |
| Mayo Clinic-Franciscan Health Sparta | Sparta | 9 | (0.4) | 13 | -2.9% |
| Burnett Medical Center | Grantsburg | 8 | 1.0 | 17 | 5.6% |
| Flambeau Hospital | Park Falls | 8 | 1.1 | 20 | 5.4% |
| Moundview Memorial Hospital&Clinics | Friendship | 7 | 0.6 | 15 | 4.0% |
| Memorial Hospital of Lafayette Co. | Darlington | 6 | 0.9 | 13 | 6.9% |
| Edgerton Hospital & Health | Edgerton | 5 | (1.6) | 18 | -8.8% |
| St. Mary's Janesville Hospital | Janesville | 5 | (5.0) | 51 | -9.9% |
| Wheaton Franciscan-St. Francis | Milwaukee | 5 | (0.5) | 156 | -0.3% |
| Oconto Hospital & Medical Center | Oconto | 5 | (0.2) | 5 | -2.9% |
| Boscobel Area Health Care | Boscobel | 4 | (0.2) | 14 | -1.7% |
| Ministry Sacred Heart Hospital | Tomahawk | 4 | 4.3 | 18 | 24.0% |
| Ripon Medical Center | Ripon | 3 | (0.1) | 23 | -0.4% |
| Ministry Our Lady of Victory Hospital | Stanley | 3 | 0.7 | 21 | 3.4% |
| Gundersen Tri-County Hospital | Whitehall | 3 | 0.9 | 12 | 7.7% |
| Gundersen St. Joseph's Hospital&Clinics | Hillsboro | 2 | 0.9 | 17 | 5.1% |
| Children's Hosp Wisconsin-Fox Valley | Neenah | 2 | (2.0) | 20 | -9.9% |
| Chippewa Valley Hospital | Durand | 1 | (0.1) | 14 | -0.9% |
| Mercy Walworth Hospital&Med Ctr | Lake Geneva | - | 2.3 | 60 | 3.8% |
| Aurora Sinai Medical Center | Milwaukee | - | (15.3) | 191 | -8.0% |
| Indianhead Medical Center/Shell Lake | Shell Lake | - | 0.2 | 6 | 3.2% |
| Wild Rose Community Meml Hospital | Wild Rose | (1) | 0.5 | 14 | 4.0% |
| Wheaton Franciscan-Franklin | Franklin | (14) | 7.8 | 58 | 13.6% |
| Ministry Saint Clare's Hospital | Weston | (59) | 4.0 | 100 | 3.9% |
| Total all 125 Wisconsin Hospitals | 16,002 | 1,570 | 16,573 | 9.5% |
Yeah, that's $1.570 bil of Bottom Line Earnings in just the most recently reported year.
Also 18 of these 125 Wisconsin Hospitals generated Bottom Line Losses. So clearly, with the Earnings Charge reductions in both Bad Debt Provisions and Charity Care, it only makes sense that all Wisconsin Hospitals would benefit greatly not just from the Affordable Care Act, but particularly so from the full Expansion of Medicaid in Wisconsin.
