Wednesday, March 19, 2014

Mississippi Non-Profit Hospitals Net Assets Up 15% 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 Mississippi with Net Assets (i.e. Financial Strength or Total Assets minus Total Liabilities) at the most recent date of more than $300 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

North Mississippi Health Services Tupelo MS Sep 13        759
Sep 09          670 13%
University Mississippi Medical Center Jackson MS Jun 12        688
Jun 09          630 9%
Forest County General Hospital Hattiesburg MS Dec 13        393
Sep 09          293 34%
Mississippi Baptist Health System Jackson MS Nov 13        365
Aug 09          312 17%
Memorial Hospital Gulfport MS Sep 13        318
Sep 09          292 9%

Total of all 5


       2,197 15%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 5 Mississippi Non-Profit Hospital Organizations increased by 15% for their short 3.90 years during the Obama Administration.

It should be pointed out that the University Mississippi Medical Center has not reported its June 30, 2013 Net Asset amount yet.  But then for the 3 years ended June 30, 2012, its Net Asset growth was a very modest 9%.

I've reviewed all of the US States and Mississippi's Total Net Asset growth during the Obama Administration is much lower than that of any other State.

Mississippi Struggling Hospitals

From a review of EMMA, I found 10 Mississippi Hospital Organizations with more than $10 mil of Total Revenues in their most recent fiscal year.  6 of the 10 had Operating Losses, which totaled $238 mil, which was a massively high negative 9.2% of their Total Operating Revenues of $2,584 mil, as you can see in the below chart:



Operating Annual

 Operating  Total Income Fiscal

City  Income  Operating (Loss) Year

HQs  (Loss)  Revenues  Margin  End

mils $s mils $s  % 
Mississippi Non-Profit Hospital Organizations

University Mississippi Medical Center Jackson     (163.4)         836 -19.5% Jun 12
North Mississippi Health Services Tupelo       (46.7)         735 -6.4% Sep 13
Mississippi Baptist Health Systems Jackson       (22.7)         417 -5.4% Aug 13
Singing River Health Pascagoula         (2.3)         380 -0.6% Sep 12
King's Daughters Medical Center Brookhaven         (2.2)           71 -3.1% Sep 13
Southwest Mississippi Regional Medical Center McComb         (1.1)         145 -0.8% Sep 13

Total all 6
    (238.4)    2,584.0 -9.2%

When you have these kinds of huge Operating Losses, the responsible thing to do is to deal with them and not ignore them.  So far, the State of Mississippi has decided to ignore them.

The best and only way to substantially strengthen these struggling Mississippi Hospitals is for the State of Mississippi to fully expand Medicaid.

A key side benefit here to Mississippi citizens is that the resultant profit enhancements and thus Net Asset enhancements of all Mississippi Hospitals due to Medicaid expansion will give them 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.