Below here are the Net Assets of these 7 Colorado Hospital Organizations at both the most recent reported date and also at the Fiscal Year End (FYE) closest to the beginning of the Obama Administration:
|mil $s||mil $s|
|Catholic Health Initiatives||Inverness||CO||Dec 13||8,838||Jun 09||5,505||61%|
|SCL Health Systems||Denver||CO||Sep 13||2,223||Dec 08||2,263||-2%|
|U Colorado Health||Ft. Collins||CO||Dec 13||2,020||Feb 09||1,172||72%|
|Children's Hospital Colorado||Aurora||CO||Dec 13||1,275||Dec 08||678||88%|
|Denver Health & Hosp Authority||Denver||CO||Dec 13||429||Dec 08||406||6%|
|Total all 5 Non-Profit Hospitals||14,785||10,024||47%|
|Publicly-held Hospital Related|
|DaVita Healthcare Partners||Denver||CO||Mar 14||4,838||Dec 08||1,827||165%|
|Envision Healthcare||Greenwood Village||CO||Dec 13||1,610||Dec 08||539||199%|
|Total both Publicly-Held||6,448||2,366||173%|
|Total all 7 Non-Profit & Publicly-held Hospital Related||21,233||12,390||71%|
As you can see from the above chart, the Total Net Assets (Financial Strength) of these 7 Colorado Non-Profit and Publicly-held Hospital Related Companies increased by a very impressive 71% to $21.233 bil for their average 4.73 years so far during the Obama Administration.
U Colorado Health was formed in 2012 and is comprised of the three former Hospital Organizations.....Aurora-based University of Colorado Hospital Authority, Ft. Collins-based Poudre Valley Health System and Colorado Springs-based Memorial Health System. The 2009 Net Asset amount above for U Colorado Health is a combination of these 3 latter Hospital Organizations' Net Assets amounts back then.
Very positively impacting this very robust increase in the Net Assets (Financial Strength) of these 7 Colorado 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 very impressive increase in Net Assets (Financial Strength) of these 7 Colorado Hospital Organizations.
A remarkable thing is that these very robust increases in Net Assets (Financial Strength) of these Hospital Organizations occurred when these 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 7 Colorado Hospital Organizations, a key beneficiary of this will be Colorado citizens electing to buy health insurance on the Health Insurance Exchange. This strong Net Asset growth gives these Colorado Hospital Organizations the financial flexibility to moderate their pricing for hospital 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.
Colorado Struggling Hospitals
From a review of audited financial statements in EMMA, I found 26 Colorado Hospital Organizations. The Total Operating Revenues of these 26 Colorado Hospital Organizations were a modest 2.2% of their Total Operating Revenues.
There were 5 Colorado Hospital Organizations, which generated a very strong Total Operating Margin of 11.5% in their most recent fiscal years, including two in the very wealthy ski resorts of Vail and Aspen:
|mils $s||mils $s||%|
|Pure Golden Hospitals|
|Vail Health Services||Vail||37.8||212||17.8%||Oct 2013|
|University Colorado Health||Aurora||270.4||2,321||11.7%||Jun 2013|
|Valley View Hospital||Glenwood Springs||15.8||161||9.8%||Dec 2013|
|Aspen Valley Hospital||Aspen||6.4||69||9.3%||Dec 2013|
|Children's Hospital||Aurora||61.2||758||8.1%||Dec 2012|
|Total all 5||391.6||3,521.0||11.1%|
However, there were double that number or 10 Colorado Hospital Organizations which posted Operating Losses and triple that number or 15 registering Operating Income Margins of less than 2.7%, in their most recent fiscal years:
|mils $s||mils $s||%|
|Colorado Loss or Low Profit Hospital Organizations|
|Rangely District Hospital||Rangely||(4.5)||9||-51.7%||Dec 2012|
|Upper San Juan Health District||Pagosa Springs||(1.9)||11||-16.7%||Dec 2012|
|Kremmling Memorial Hosp District||Kremmling||(1.2)||17||-7.2%||Dec 2012|
|Kit Carson County Health||Burlington||(0.5)||13||-3.9%||Dec 2013|
|Estes Park Medical Center||Estes Park||(1.3)||34||-3.8%||Dec 2012|
|Longmont United Hospital||Longmont||(4.5)||170||-2.6%||Dec 2013|
|Southwest Health System||Cortez||(1.0)||41||-2.4%||Dec 2012|
|National Jewish Health||Denver||(4.1)||206||-2.0%||Jun 2013|
|Boulder Community Hospital||Boulder||(2.0)||290||-0.7%||Jun 2013|
|Catholic Health Initiatives||Inverness||(54.9)||10,708||-0.5%||Jun 2013|
|Denver Health & Hospital||Denver||5.5||744||0.7%||Dec 2012|
|Montrose Memorial Hospital||Montrose||1.0||89||1.1%||Dec 2012|
|Pueblo Community Health Ctr||Pueblo||0.5||21||2.4%||Dec 2012|
|Delta County Memorial Hospital||Delta||1.6||65||2.5%||Dec 2013|
|Sisters Charity Leavenworth||Denver||56.7||2,223||2.6%||Dec 2012|
By far the best and only economically good way to put a major dent in the Operating Losses of the so many Colorado struggling Hospitals is for the State of Colorado to fully expand Medicaid, which they wisely have done. Since Colorado did this, there will be a resultant massive inflow of Patient Revenues from Medicaid expansion.
With this massive inflow of Revenues due to Medicaid expansion in Colorado, the struggling Colorado Hospitals will be able to substantially reduce their Operating Losses and a huge majority of them should even be able to turn their losses into profits. And due to Medicaid expansion, the Colorado Hospitals with very modest Operating Income will have their profits bolstered very robustly, as will the Colorado Hospitals now making higher than modest Operating Income.
Also since Colorado fully expanded Medicaid, another key beneficiary of the resultant very healthy profit improvement and thus also Total Net Assets improvement of all Colorado Hospitals will be the Colorado citizens electing to buy health insurance on the Health Insurance Exchange. This exceptional Net Asset growth from Medicaid expansion should in all fairness give all Colorado 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.