|mil $s||mil $s|
|CHE Trinity Health||Livonia||MI||Dec 13||10,206||Mar 09||6,008||70%|
|Spectrum Health System||Grand Rapids||MI||Mar 14||2,204||Jun 09||1,128||95%|
|Henry Ford Health System||Detroit||MI||Dec 13||1,572||Dec 08||1,053||49%|
|Beaumont Health System||Royal Oak||MI||Dec 13||1,288||Dec 08||787||64%|
|McLaren Health Care||Flint||MI||Dec 13||1,282||Sep 09||682||88%|
|Sparrow Health System||Lansing||MI||Dec 13||777||Dec 08||318||144%|
|MidMichigan Health||Midland||MI||Mar 14||672||Jun 09||414||62%|
|Oakwood Healthcare||Dearborn||MI||Dec 13||530||Dec 08||234||126%|
|Lakeland Hospitals||St Joseph||MI||Dec 13||526||Sep 09||353||49%|
|Bronson Healthcare Group||Kalamazoo||MI||Dec 13||580||Dec 08||226||157%|
|Munson Healthcare||Traverse City||MI||Dec 13||486||Jun 09||264||84%|
|Total all 11||20,123||11,467||75%|
As you can see from the above chart, the Total Net Assets (Financial Strength) of these 11 Michigan Non-Profit Hospital Organizations increased by a very impressive 75% to $20.123 bil for their average 4.75 years so far during the Obama Administration.
The lowest percentage growth of the 11 was a robust 49%.
In just the past 6 months, the Total Net Assets increase during the Obama Administration grew substantially from 55% to 75%.
Very positively impacting this very robust increase in the Net Assets (Financial Strength) of these 11 Michigan 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 11 Michigan 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 11 Michigan Hospitals, a key beneficiary of this will be Michigan citizens electing to buy health insurance on the Health Insurance Exchange. This strong Net Asset growth gives these Michigan 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.
University of Michigan
None of the above amounts have anything to do with the University of Michigan's Hospitals and Clinics since Michigan quit disclosing the amount of its Total Net Assets (Financial Strength or Excess of Total Assets over Total Liabilities) related to its renown Hospital and Clinics, which are very salient to the Affordable Care Act (ACA).
Thanks primarily to the exceptional stock market during the Obama Administration, the University of Michigan as a whole has seen its Total Net Assets grow by 33% during its most recent 4 Fiscal Years (FYs) ending June 30, 2013, going from $8.665 bil at June 30, 2009 to $11.483 bil at June 30, 2013. These 4 FYs are completely during the Obama Administration.
Below here are the Total Operating Revenues and Total Operating Expenses of the University of Michigan's Hospitals and Clinics Operations for each of the most recent 4 FYs:
|University of Michigan Hospitals and Clinics|
|FY 2013||FY 2012||FY 2011||FY 2010||FYs|
|mil $s||mil $s||mil $s||mil $s||mil $s|
|Patient Care Revenues||2,786||2,602||2,411||2,311||10,110|
|Patient Care Expenses||2,753||2,532||2,285||2,183||9,753|
|=Hospital Operating Income||33||70||126||128||357|
|Hosp Oper Income as % of Hosp Oper Revenues||1.2%||2.7%||5.2%||5.5%||3.5%|
These above Hospital Profit Margin Percentages are very reasonable as it relates to the goal of controlling Total US Heath Care Costs. Michigan's 3.5% Total Profit Margin for the most recent 4 FYs is substantially below the University of Texas Health Institutions exceedingly too high 10.8% and Vanderbilt University's Health Care Operations too high 8.1%.
With the University of Michigan Hospitals and Clinics' very low Profit Margin Percentages, a key beneficiary of this will be Michigan citizens electing to buy health insurance on the Health Insurance Exchange.
Michigan Struggling Hospitals
But it's not just the University of Michigan Hospitals and Clinics which has posted weak operating results.
From a review of financial statements in EMMA, I found 27 Michigan Hospital Organizations there. These 27 Michigan Hospital Organizations generated Total Operating Income of $713.6 mil in their most recent year, which was a very modest 2.3% of their Total Operating Revenues of $30.569 bil.
Of the 27 Michigan Hospital Organizations, 8 of them posted Operating Losses and 19 of them generated Operating Income Margins of less than 2.7%.
Below here are these 27 Michigan Hospital Organizations:
|mils $s||mils $s||%|
|Michigan Non-Profit Hospital Organizations|
|John Tolfree Health System||West Branch||(3.1)||35.8||-8.7%||Mar 2013|
|Crittenton Hospital Medical Ctr||Rochester Hills||(16.1)||229.0||-7.0%||Dec 2012|
|Calhoun County Medical Care||Battle Creek||(0.8)||13.3||-6.0%||Dec 2012|
|Allegiance Health||Jackson||(13.2)||420.4||-3.1%||Jun 2013|
|NorthStar Health System||Iron River||(1.1)||37.5||-2.9%||Dec 2012|
|Mercy Memorial Hospital||Monroe||(4.8)||165.0||-2.9%||Jun 2013|
|Metro Health||Wyoming||(5.5)||313.5||-1.8%||Jun 2013|
|Ascension Health Flint||Flint||(2.0)||459.0||-0.4%||Jun 2013|
|Hillsdale Community Health Ctr||Hillsdale||-||57.1||0.0%||Jun 2013|
|Beaumont Hospital||Royal Oak||6.7||2,274.9||0.3%||Dec 2013|
|Henry Ford Health||Detroit||13.7||4,559.8||0.3%||Dec 2013|
|Hurley Medical Center||Flint||2.5||369.1||0.7%||Jun 2013|
|Ascension Health Kalamazoo||Kalamazoo||4.2||558.9||0.8%||Jun 2013|
|MidMichigan Health||Midland||5.4||570.6||0.9%||Jun 2013|
|Dickinson County Healthcare||Iron Mountain||0.9||84.3||1.1%||Dec 2012|
|Sparrow Health||Lansing||12.8||1,144.4||1.1%||Dec 2013|
|Oakwood Healthcare||Dearborn||23.8||1,160.5||2.1%||Dec 2013|
|Covenant HealthCare System||Saginaw||13.1||509.0||2.6%||Jun 2013|
|McLaren Health||Flint||65.5||2,486.6||2.6%||Sep 2013|
|Total all 19||102.0||15,448.7||0.7%|
|Bronson Healthcare||Kalamazoo||26.5||901.5||2.9%||Dec 2012|
|Trinity Health||Livonia||304.8||8,978.4||3.4%||Jun 2013|
|Holland Hospital||Holland||7.9||206.9||3.8%||Mar 2013|
|Munson Healthcare||Traverse City||21.9||563.6||3.9%||Jun 2013|
|Spectrum Health||Grand Rapids||212.3||3,937.4||5.4%||Jun 2013|
|Alpena Regional Medical Ctr||Alpena||7.1||127.3||5.6%||Jun 2013|
|Otsego Memorial Hospital||Gaylord||5.8||78.4||7.4%||Dec 2012|
|Lakeland Hospitals||St Joseph||25.3||327.2||7.7%||Sep 2013|
|Total all 27||713.6||30,569.4||2.3%|
When you have 71% of your State Hospitals each generating Operating Income below 2.7% of their Total Operating Revenues, you have a financial problem with your State's Hospitals that you have to quickly address.
By far the best and only economically good way to put a major dent in the Operating Losses of the Michigan struggling Hospitals is for the State of Michigan to fully expand Medicaid, which they wisely have done. Since Michigan 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 Michigan, the struggling Michigan Hospitals will be able to substantially reduce their huge Operating Losses and a huge majority of them should even be able to turn their substantial losses into profits. And due to Medicaid expansion, the Michigan Hospitals with very modest Operating Income will have their profits bolstered very robustly, as will the Michigan Hospitals now making higher than modest Operating Income.
Also since Michigan fully expanded Medicaid, another key beneficiary of the resultant very healthy profit improvement and thus also Total Net Assets improvement of all Michigan Hospitals will be the Michigan 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 Michigan 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.