Friday, March 21, 2014

Connecticut Non-Profit Hospitals Net Assets Up 99% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 5 Non-Profit Hospital Organizations headquartered in the State of Connecticut with Net Assets (i.e. Financial Strength or Total Assets minus Total Liabilities) at the most recent date of more than $400 mil each.  Below here are the Net Assets of these 5 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

Hartford Healthcare Hartford CT Dec 13     1,668
Sep 09          661 152%
Yale-New Haven Hospital New Haven CT Dec 13     1,061
Sep 09          588 80%
Western Connecticut Health Danbury CT Dec 13        514
Sep 09           266 93%
Greenwich Healthcare Services Greenwich CT Dec 13        411
Sep 09          357 15%
Stamford Health System Stamford CT Dec 13        403
Sep 09          168 140%

Total of all 5


       2,040 99%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 5 Connecticut Non-Profit Hospital Organizations increased by a phenomenal 99% to $4.057 bil for their average 4.25 years during the Obama Administration.

Very positively impacting this very robust increase in the Net Assets (Financial Strength) of these 5 Connecticut 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 5 Connecticut 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 5 Connecticut Hospitals, a key beneficiary of this will be Connecticut citizens electing to buy health insurance on the Health Insurance Exchange.  This strong Net Asset growth gives these Connecticut Hospitals 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.