New York Non-Profit Hospitals Net Assets Up 119% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 11 Non-Profit Hospital Organizations headquartered in the State of New York 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 11 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
New York and Presbyterian Hospital	New York	NY	Dec 13	4,792		Dec 08	2,333	105%
Memorial Sloan-Kettering Cancer Center	New York	NY	Dec 13	5,144		Dec 08	3,224	60%
North Shore Long Island Jewish Health	Great Neck	NY	Dec 13	2,989		Dec 08	614	387%
Mount Sinai Hospital	New York	NY	Dec 13	1,226		Dec 08	477	157%
NYU Hospitals Center	New York	NY	Feb 14	1,167		Aug 09	401	191%
Icahn School Medicine Mount Sinai	New York	NY	Dec 13	1,129		Dec 08	765	48%
Catholic Health Services Long Island	Rockville Centre	NY	Dec 13	1,025		Dec 08	561	83%
Montefiore Medical Center	New York	NY	Dec 13	896		Dec 08	320	180%
St. Peters Health Partners	Albany	NY	Jun 13	776		Dec 08	158	391%
Hospital for Special Surgery	New York	NY	Dec 13	629		Dec 08	269	134%
Albany Medical Center	Albany	NY	Dec 13	466		Dec 08	113	312%
Total all 11				20,239			9,235	119%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 11 New York Non-Profit Hospital Organizations increased by a spectacular 119% to $20.239 bil during their average 4.91 years so far of the Obama Administration.

Eight of the 11 had their Total Net Assets more than double during the Obama Administration so far.

The lowest percentage increase of the 11 was a robust 48%.

Very positively impacting this massive increase in the Net Assets (Financial Strength) of these 11 New York 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 11 New York 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 11 New York Hospitals, a key beneficiary of this will be New York citizens electing to buy health insurance on the Health Insurance Exchange.  This exceptional Net Asset growth gives these New York 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.  

State University of New York (SUNY)

None of the above amounts have anything to do with the State University of New York (SUNY) Hospitals and Clinics.  SUNY is a Non-Profit Governmental Entity and thus so is its Hospitals and Clinics.

Below here are the Total Operating Revenues and Total Operating Expenses of the SUNY Hospitals and Clinics for the most recent 4 years:

SUNY Hospitals and Clinics
					Total
					Four
	FY 2013	FY 2012	FY 2011	FY 2010	FYs
	mil $s	mil $s	mil $s	mil $s	mil $s
Hospital and Clinic Revenues	2,539	2,459	2,012	1,877	8,887
Hospital and Clinic Expenses	2,674	2,652	2,301	2,227	9,854
=Hospital Operating Loss	(135)	(193)	(289)	(350)	(967)

So, SUNY Hospitals and Clinics had Total Losses of $967 mil for the most recent 4 years.

 New York City Health & Hospitals Corp

The City of New York is a Non-Profit Governmental Entity and thus so is its New York City Health & Hospitals Corp, which is a Component of the City of New York.

New York City Health & Hospitals Corp is just huge with 11 hospitals and 70 primary care sites.

Since it is a safety net hospital and is so huge, it has accumulated massive losses.  Below here are these losses for each of the most recent 3 years:

New York City Health & Hospitals Corp

Fiscal		Bottom	Total
Year	Operating	Line	Operating
End	(Loss)	(Loss)	Revenues
June	mils $s	mils $s	mils $s
2013	(668)	(777)	5,845
2012	(429)	(517)	5,927
2011	(510)	(590)	6,184
3 Year Total	(1,607)	(1,884)	17,956

Yeah, those are $1.884 bil Total Bottom Line Losses for the most recent 3 fiscal years.

Other Struggling New York Hospitals

In addition to New York City Health & Hospitals Corp and SUNY Hospitals & Clinics, here are 6 more New York Hospital Organizations with annual Total Operating Revenues above $1 bil and with Total Operating Income as a Percentage of Total Operating Revenues of 1.5% or less in their most recent fiscal year:

		Most			Operating
		Recent			Income
		Fiscal	Operating	Total	(Loss)
New York Hospital Organization	City HQs	Year	Income	Operating	Margin
		End	(Loss)	Revenues	%
			mil $s	mil $s
St. Luke's Roosevelt Hospital	New York	Dec 2012	9.6	1,199	0.8%
Catholic Health Services Long Island	Rockville Centre	Dec 2013	18.9	2,096	0.9%
Albany Medical Center	Albany	Dec 2013	9.6	1,014	0.9%
Winthrop University Hospital Association	Mineola	Dec 2013	13.2	1,117	1.2%
Kaleida Health Buffalo	Buffalo	Dec 2012	15.6	1,222	1.3%
North Shore Long Island Jewish Health	Great Neck	Dec 2012	97.9	6,702	1.5%

But the very positive aspect to this is that the State of New York has fully expanded Medicaid.  So with the resultant massive inflow of Patient Revenues from Medicaid expansion, New York City Health & Hospitals Corp and SUNY Hospitals & Clinics should both be able to make a major dent in reducing their massive losses and perhaps even turn these massive losses into profits.  And the New York Hospitals with very modest Operating Income should be able to generate much more robust Operating Profits.

One of the key beneficiaries of this very healthy improvement in Operating Income and thus also in the Total Net Assets of New York City Health & Hospitals Corp, SUNY Hospitals & Clinics and other struggling New York Hospitals will be New York citizens electing to buy health insurance on the Health Insurance Exchange.  This exceptional Net Asset growth due to Medicaid expansion gives New York City Health & Hospitals Corp as well as all New York 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.