Wednesday, March 19, 2014

Minnesota Non-Profit Hospitals Net Assets Up 174% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 9 Non-Profit Hospital Organizations headquartered in the State of Minnesota 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 9 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

Mayo Clinic Rochester MN Mar 14     7,799
Dec 08       2,326 235%
HealthPartners Bloomington MN Dec 13     2,206
Dec 08          503 339%
Allina Health System Minneapolis MN Dec 13     2,011
Dec 08          804 150%
Fairview Health Services Minneapolis MN Mar 14     1,575
Dec 08          732 115%
Essentia Health Minneapolis MN Dec 13        888
Jun 09          519 71%
Centracare Health System St Cloud MN Dec 13        787
Jun 09          381 107%
Children's Hospitals and Clinics Minneapolis MN Dec 13        664
Dec 08          370 79%
Park Nicollet Health Services St Louis Park MN Dec 13        604
Dec 08          299 102%
North Memorial Health Care Robbinsdale MN Dec 13        420
Dec 08          263 60%

Total all 9


       6,197 174%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 9 Minnesota Non-Profit Hospital Organizations increased by a spectacularly off-the-chart 174% to a massive $16.954 bil for their average 4.94 years so far during the Obama Administration.

The clear driver of this incredible Net Asset appreciation was Mayo Clinic, whose Net Assets grew by a massive $5.5 bil or by 235% so far during the Obama Administration.

Six of the 9 more than doubled their Net Assets so far during the Obama Administration.

The lowest percentage growth of the 9 was up a very strong 60%.

Very positively impacting this incredible increase in the Net Assets (Financial Strength) of these 9 Minnesota 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 exceptional increase in Net Assets (Financial Strength) of these 9 Minnesota 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, and especially the Minnesota 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 impressive Net Asset percentage increases of these 9 Minnesota Hospitals, a key beneficiary of this will be Minnesota citizens electing to buy health insurance on the Health Insurance Exchange.  This very strong Net Asset growth gives these Minnesota 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.