Tuesday, March 18, 2014

Ohio Non-Profit Hospitals Net Assets Up 93% 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 Ohio 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









Cleveland Clinic Health System Cleveland OH Dec 13     6,208
Dec 08       2,715 129%
OhioHealth Columbus OH Dec 13     2,925
Jun 09       1,259 132%
Catholic Health Partners Cincinnati OH Dec 13     3,097
Dec 08       1,614 92%
Cincinnati Children's Hospital Med Ctr Cincinnati OH  Mar 14      2,234
Jun 09       1,140 96%
Premier Health Partners Dayton OH Dec 13     1,715
Dec 08       1,111 54%
Nationwide Children's Hospital Columbus OH  Sep 13      1,644
Dec 08          761 116%
ProMedica Health Care Toledo OH Dec 13     1,614
Dec 08       1,042 55%
University Hospitals Health System Cleveland OH Dec 13     1,649
Dec 08       1,078 53%
Mount Carmel Health Columbus OH Jun 13     1,238
Jun 09          850 46%
Ohio State Univ Wexner Med Ctr Columbus OH Jun 13        924
Jun 09          555 66%
Summa Health System Akron OH Dec 13        874
Dec 08          407 115%
Kettering Health Network Dayton OH  Mar 14         826
Dec 08          340 143%
UC Health (Cincinnati) Cincinnati OH Dec 13        675
Jun 09          415 63%
Children's Hospital Med Center Akron Akron OH Dec 13        573
Dec 08          247 132%
Christ Hospital Health Network Cincinnati OH Dec 13        478
Jun 09          317 51%









Total all 15


  26,674

    13,851 93%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 15 Ohio Non-Profit Hospital Organizations increased by a spectacular 93% to $26.674 bil during their average 4.70 years so far of the Obama Administration.

The lowest percentage increase of the 15 was a robust 46%.

In just the past 6 months, this Total Net Asset increase grew substantially from 65% to 93%.  The main driver here was Cleveland Clinic's giant $816 mil increase in Net Assets from $5.392 bil at June 30, 2013 to $6.208 bil at December 31, 2013.

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

Ohio State University

A very late find was the Ohio State University (OSU) Wexner Medical Center.

Ohio State University is a Non-Profit Governmental Entity and thus so is its OSU Wexner Medical Center.

Below here are the Total Operating Revenues and Total Operating Expenses of OSU Wexner Medical Center for each of the most recent 3 Fiscal Years (FYs), which is all that I could find on EMMA:


OSU Wexner Medical Center


Total




Three

FY 2013 FY 2012 FY 2011 FYs

mil $s mil $s mil $s mil $s





Operating Revenues       2,029       1,913       1,706       5,648
Operating Expenses       1,814       1,738       1,553       5,105

   


=Operating Income          215          175          153          543





Operating Income as % of Operating Revenues 10.6% 9.1% 9.0% 9.6%
 
Whoa, this is pretty crazy for a Non-Profit Governmental Hospital to generate Health Care Operating Income as a Percentage of the Related Operating Revenues for the most recent 3 years of an excessively high 9.6%, which is pretty much equivalent to the Total Bottom Line Profit Margin of the 30 pristine Dow Industrials.  It tells you why the US has a huge Health Care Cost problem and it also tells you that the Hospital and Other Health Care Patients and the Businesses and the US Government covering them are all getting ripped off by OSU Wexner Medical Center's exorbitant pricing of hospital and other health care procedures.

OSU Wexner Medical Center's Net Assets have increased by 66% during the Obama Administration through June 30, 2013, going from $555 mil at June 30, 2009 to $924 mil at June 30, 2013. 

Which takes me finally to a very positive aspect of the extremely high OSU Wexner Medical Center Operating Profits as well as the resultant massive build-up of the Net Assets of the OSU Wexner Medical Center.

With such substantial Total Net Assets dollar and percentage increases of the OSU Wexner Medical Center, one of the key beneficiaries of this will be Ohio citizens electing to buy health insurance on the Health Insurance Exchange.  This exceptional Net Asset growth gives the OSU Wexner Medical Center 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.