Saturday, March 22, 2014

Alaska Non-Profit Hospitals Net Assets Up 57% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 2 Non-Profit Hospital Organizations and 1 Hospital Foundation headquartered in the State of Alaska and with Net Assets (i.e. Financial Strength or Total Assets minus Total Liabilities) at the most recent date of more than $50 mil each.  Below here are the Net Assets of these 3 at both the most recent reported date and also at the Fiscal Year End (FYE) closest to the beginning of the Obama Administration:

FYE Balance Net

Balance Sheet Assets

Most Recent
Sheet Net %

Recent Balance
Date Assets Change

Balance Sheet
Beginning Beginning During
City State Sheet Net
Obama Obama Obama
Hospital Organization HQs HQs Date Assets
Admin Admin Admin

mil $s

mil $s

Providence Health Alaska Region Anchorage AK Dec 13        937
Dec 08           585 60%
Greater Fairbanks Community Hospital Foundation Fairbanks AK Dec 13        284
Dec 08           195 46%
Fairbanks Memorial Hospital/Denali Center/Tanana Valley Clinic Fairbanks AK Dec 13          54
Dec 08            35 56%

Total all 3


          814 57%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 3 Alaska Hospital Organizations increased by a very robust 57% for their average 5.00 years so far during the Obama Administration.

Very positively impacting this very robust increase in the Net Assets (Financial Strength) of these 3 Alaska Hospital Organizations were actions taken by both the Obama Administration and the US Fed to strengthen the US Financial Foundation which was severely damaged from the financial meltdown in late 2008.

In addition, the Affordable Care Act (ACA) has also played a key role in this impressive increase in Net Assets (Financial Strength) of these 3 Alaska Non-Profit Hospital Organizations.

A remarkable thing is that these very robust increases in Net Assets (Financial Strength) of these Non-Profit Hospital Organizations occurred when these Non-Profit Hospitals were also playing very instrumental roles in the substantial annual percentage growth reduction of Total US Health Care Costs which occurred in each of the most recent three years under the ACA.

With such impressive Net Asset percentage increases of these 3 Alaska Hospital Organizations, a key beneficiary of this will be Alaska citizens electing to buy health insurance on the Health Insurance Exchange.  This strong Net Asset growth gives these Alaska Hospitals the financial flexibility to moderate their pricing for hospital and other health care procedures in their negotiations with health insurance companies which ultimately determines what insurance premium prices are set at by health insurance companies on the Health Insurance Exchange.