|mil $s||mil $s|
|Virtua Health||Marlton||NJ||Dec 13||1,091||Dec 08||566||93%|
|AHS (Atlantic Health System) Hospital||Morristown||NJ||Dec 13||1,046||Dec 08||510||105%|
|Robert Wood Johnson University Hospital||New Brunswick||NJ||Mar 14||853||Dec 08||457||87%|
|Meridian Hospitals||Red Bank||NJ||Dec 13||903||Dec 08||339||166%|
|Hackensack University Medical Center||Hackensack||NJ||Dec 13||703||Dec 08||297||137%|
|Barnabus Health||West Orange||NJ||Dec 13||651||Dec 08||(290)||324%|
|AtlantiCare Regional Medical Center||Galloway||NJ||Dec 13||491||Dec 08||262||87%|
|Cooper Health Obligated Group||Camden||NJ||Dec 13||432||Dec 08||218||98%|
|Total all 8||6,170||2,359||162%|
As you can see from the above chart, the Total Net Assets (Financial Strength) of these 8 New Jersey Non-Profit Hospital Organizations increased by a phenomenal 162% to $6.170 bil during their average 5.03 years so far of the Obama Administration.
To illustrate how broad-based this New Jersey Hospital Net Asset Growth was, the lowest percentage increase of the 8 was an exceptionally high 87%.
Very positively impacting this massive increase in the Net Assets (Financial Strength) of these 8 New Jersey 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 huge increase in Net Assets (Financial Strength) of these 8 New Jersey 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 spectacular Net Asset percentage increases of these 8 New Jersey Hospitals, a key beneficiary of this will be New Jersey citizens electing to buy health insurance on the Health Insurance Exchange. This exceptional Net Asset growth gives these New Jersey 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 Medicine and Dentistry of New Jersey
There are many Hospitals in New Jersey which are struggling financially, but none more so than the Newark-based University of Medicine and Dentistry of New Jersey, a Component Unit of the New Jersey State Government and thus a Public Non-Profit Governmental Unit.
Below here are the relevant portions of its Operating Statements for the 4 Fiscal Years (FYs) ended June 30, 2012, which are the most recent financial statements disclosed on EMMA.
|University of Medicine and Dentistry of New Jersey||Total|
|FY 2012||FY 2011||FY 2010||FY 2009||FYs|
|mil $s||mil $s||mil $s||mil $s||mil $s|
|Operating Loss Before Interest Expense||(379)||(374)||(431)||(446)||(1,630)|
|Operating Loss After Interest Expense||(418)||(413)||(471)||(485)||(1,787)|
|State Appropriations-Payments of Fringe Benefits||205||154||193||182||734|
|Total State Appropriations||411||369||455||436||1,671|
As you can see from the above chart, the University of Medicine and Dentistry of New Jersey generated Total Operating Losses After Interest Expense of a massive $1.787 bil for the 4 years ended June 30, 2012.
Of that $1.787 bil Total Operating Losses, $1.671 bil, or 94% of it, was funded by State Appropriations or in other words by New Jersey Taxpayers.
The University of Medicine and Dentistry of New Jersey recorded Total Bad Debts Charges of $266 mil and also incurred Estimated Charity Care Costs of another $233 mil, both for the 2 Years ended June 30, 2012, and at the same time, it was recording Total Operating Losses After Interest Expense of $831 mil. So, these Bad Debt Charges and Charity Care Costs made up a substantial portion of the Operating Losses in those 2 years.
By far the best and only way to put a major dent in the University of Medicine and Dentistry of New Jersey's massive Operating Losses and also those of other struggling New Jersey Hospitals is for the State of New Jersey to fully expand Medicaid, which it wisely has. There will be a resultant massive inflow of Patient Revenues from Medicaid expansion, and thus the University of Medicine and Dentistry of New Jersey and other struggling New Jersey Hospitals will be able to substantially reduce their huge Operating Losses.
In addition, one of the key beneficiaries of the resultant very healthy profit improvement and thus also Total Net Assets improvement of all New Jersey Hospitals due to Medicaid expansion in New Jersey will be New Jersey citizens electing to buy health insurance on the Health Insurance Exchange. This exceptional Net Asset growth from Medicaid expansion will give all New Jersey 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.