Wednesday, March 19, 2014

North Carolina Non-Profit Hospitals Net Assets Up 60% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 15 Non-Profit Hospital Organizations headquartered in the State of North Carolina 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 15 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









Carolinas Health Care System Charlotte NC  Sep 13      3,946
Dec 08       2,340 69%
Duke University Health System Durham NC  Mar 14      2,909
Jun 09       1,392 109%
Novant Health Winston-Salem NC  Dec 13      2,558
Dec 08       1,557 64%
Cone Health Greensboro NC  Dec 13      1,430
Sep 09          894 60%
Mission Health System Asheville NC  Dec 13      1,339
Sep 09          882 52%
University North Carolina Hospitals Chapel Hill NC  Dec 13      1,285
Jun 09          911 41%
North Carolina Baptist Hospital Winston-Salem NC  Dec 13      1,047
Jun 09          715 46%
Vidant Health Greenville NC  Dec 13         995
Sep 09          587 70%
WakeMed Health Raleigh NC  Dec 13         894
Sep 09          719 24%
CaroMont Health Gastonia NC  Dec 13         686
Jun 09          386 78%
Wake Forest Univ Health Sciences  Winston-Salem NC  Dec 13         664
Jun 09          510 30%
FirstHealth of the Carolinas Pinehurst NC  Dec 13         648
Sep 09          458 41%
New Hanover Regional Medical Center Wilmington NC  Dec 13         575
Sep 09          450 28%
Rex Healthcare Raleigh NC  Dec 13         510
Jun 09          297 72%
Cape Fear Valley Health System Fayetteville NC  Dec 13         424
Sep 09          315 35%









Total all 15


  19,910

    12,413 60%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 15 North Carolina Non-Profit Hospital Organizations increased by an impressive 60% to a massive $19.910 bil for their average 4.45 years so far during the Obama Administration.

The largest of these 15.....Carolinas Health Care System..... hasn't reported its December 31, 2013 Net Asset amount yet which should be markedly higher than the above September 30, 2013 amount.

Very positively impacting this impressive increase in the Net Assets (Financial Strength) of these 15 North Carolina 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 15 North Carolina 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 North Carolina 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 15 North Carolina Hospitals, a key beneficiary of this will be North Carolina citizens electing to buy health insurance on the Health Insurance Exchange.  This strong Net Asset growth gives these North Carolina 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.    

North Carolina Struggling Hospitals

North Carolina has some excellent Non-Profit Hospital Organizations connected with Universities.  And they are also doing very well on the Operating Income front, 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 %
North Carolina University Non-Profit Hospital Organizations









Univ North Carolina Hosps Chapel Hill         113.9         1,212 9.4% Jun 13
Duke University Health Durham         184.1         2,539 7.3% Jun 13
Vidant Health Greenville           94.3         1,601 5.9% Sep 13






Total all 3
        392.3      5,352.0 7.3%

However, there are many North Carolina Hospital Organizations which are really suffering financially.

From EMMA, I found 29 North Carolina Non-Profit Hospital Organizations with Total Operating Revenues in excess of $10 mil each in their most recent fiscal year.  Of those 29, a very high 17 of them, or 59% of them, generated Operating Income as a Percentage of Total Operating Revenues of less than 2.0% in their most recent fiscal year.   These 17 Hospital Organizations generated Total Operating Losses of $115 mil in their most recent fiscal year, which was a negative 1.7% of their Total Operating Revenues, 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 %
North Carolina Non-Profit Hospital Organizations









Chatham Memorial Hospital Elkin            (6.3)              82 -7.7% Sep 13
Cone Health Greensboro          (44.1)         1,140 -3.9% Sep 13
Nash Health Care Rocky Mount            (7.5)            218 -3.4% Dec 13
Wake Forest Baptist Hosp Winston-Salem          (56.6)         1,895 -3.0% Jun 13
Stanley Health Services Albemarle            (3.1)            130 -2.4% Sep 13
High Point Regional Health High Point            (6.2)            275 -2.3% Sep 12
Halifax Regional Med Ctr Roanoke Rapids            (1.3)              90 -1.4% Sep 13
WakeMed Health Raleigh          (14.4)         1,023 -1.4% Sep 13
Columbus Regional Healthcare Whiteville            (0.6)              80 -0.8% Sep 13
Scotland Healthcare Laurinburg            (0.1)            125 -0.1% Sep 13
Wayne Health Goldsboro             0.7            216 0.3% Sep 13
Southeastern Regnl Med Ctr Lumberton             2.5            288 0.9% Sep 13
Catawba Valley Medical Center Hickory             2.1            203 1.0% Jun 13
Harnett Health Dunn             1.1              87 1.3% Sep 12
Wilson Medical Center Wilson             1.8            137 1.3% Sep 12
Cape Fear Valley Health Fayetteville           12.3            657 1.9% Sep 13
ARMC Health Care Burlington             4.8            251 1.9% Dec 12






Total all 17
       (114.9)         6,897 -1.7%

Of these 29 North Carolina Hospital Organizations, 10 of them posted Operating Losses in the most recent year.

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

A key side benefit to North Carolina citizens of North Carolina Medicaid expansion is that the resultant profit enhancements and thus Net Asset enhancements to all of North Carolina'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.