Thursday, March 20, 2014

Massachusetts Non-Profit Hospitals Net Assets Up 49% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 11 Non-Profit Hospital Organizations headquartered in the State of Massachusetts 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 11 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

Partners Healthcare System Boston MA Dec 13     7,308
Sep 09       4,975 47%
Children's Medical Center & Hospital Boston MA Dec 13     3,614
Sep 09       2,516 44%
CareGroup Healthcare System Boston MA Dec 13     1,601
Sep 09          978 64%
Dana-Farber Cancer Institute Boston MA Dec 13     1,266
Sep 09          836 51%
Boston Medical Center Boston MA Dec 13     1,136
Sep 09       1,026 11%
UMass Memorial HealthCare Worchester MA Dec 13        864
Sep 09          545 59%
Lahey Clinic Medical Center Burlington MA Dec 13        691
Sep 09          357 94%
SouthCoast Health System New Medford MA Dec 13        685
Sep 09          485 41%
Baystate Medical Center Springfield MA Dec 13        661
Sep 09          361 83%
Cape Cod Healthcare Hyannis MA Dec 13        500
Sep 09          288 74%
Covenant Health Systems Lexington MA Dec 13        437
Dec 08          242 81%

Total all 11


      12,609 49%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 11 Massachusetts Non-Profit Hospital Organizations increased by a very robust 49% to a massive $18.763 bil for their average 4.32 years during the Obama Administration.

The salient story here is that in just the past 6 months, the Total Net Assets increase during the Obama Administration of these 11 Massachusetts Non-Profit Hospital Organizations grew substantially from 28% to 49%.

Very positively impacting this very robust increase in the Net Assets (Financial Strength) of these 11 Massachusetts 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 11 Massachusetts 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, particularly the Massachusetts 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 very solid Net Asset percentage increases of these 11 Massachusetts Hospitals, a key beneficiary of this will be Massachusetts citizens electing to buy health insurance on the Health Insurance Exchange.  This very robust Net Asset growth gives these Massachusetts 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.