Wednesday, March 19, 2014

Nebraska Non-Profit Hospitals Net Assets Up 50% 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 Nebraska 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




Most
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









Nebraska Medical Center Omaha NE  Dec 13         615
Jun 09          470 31%
Nebraska Methodist Health System Omaha NE  Dec 13         542
Dec 08          300 81%
Bryan Medical Center Lincoln NE Sep 13        523
May 09          383 37%
Clarkson Regional Health Services Omaha NE  Dec 13         468
Jun 09          343 36%
Children's Hospital & Medical Center Omaha NE  Dec 13         408
Dec 08          210 94%









Total all 5


    2,556

      1,706 50%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 5 Nebraska Non-Profit Hospital Organizations increased by a very robust 50% to $2.556 bil for their average 4.67 years during the Obama Administration.

To illustrate the very recent explosive Total Net Asset growth, in just the past 6 months, this Total Net Asset increase grew from 35% to 50%.

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

Nebraska Struggling Hospitals

From EMMA, I found 16 Nebraska Non-Profit Hospital Organizations with Total Operating Revenues of at least $5 mil in their most recent fiscal year.  Precisely half of them generated Operating Income as a Percentage of Total Operating Revenues of less than 2.0% in the most recent fiscal year, as you can see in the below chart:
 



Most


 
  Recent


 
Operating Annual

   Operating  Total Income Fiscal

City  Income  Operating (Loss) Year

HQs  (Loss)  Revenues  Margin  End


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










Callaway Hospital District Callaway         (0.2)             5 -3.7% Jul 13
Osmond General Hospital Osmond         (0.2)             6 -3.2% Jun 13
Fillmore County Hospital Geneva           -             13 0.0% Jun 13
Tabitha Lincoln          0.3           51 0.6% Dec 12
Nebraska Methodist Health Omaha          4.3         668 0.6% Dec 13
Antelope Memorial Hospital Neligh          0.1           13 0.8% Jun 13
Faith Regional Health Services Norfolk          1.2         149 0.8% Dec 12
Nebraska Medical Center Omaha        14.8         803 1.8% Jun 13






Total all 8
       20.3      1,708 1.2%

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

A key side benefit to Nebraska citizens of Nebraska Medicaid expansion is that the resultant profit enhancements and thus Net Asset enhancements to all of Nebraska's Hospitals would 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.