|mil $s||mil $s|
|Non-Profit Hospital Organizations|
|UPMC||Pittsburgh||PA||Mar 14||5,200||Jun 09||2,756||89%|
|Catholic Health East||Newtown Square||PA||Sep 13||3,789||Dec 08||1,978||92%|
|Children's Hospital Philadelphia||Philadelphia||PA||Mar 14||3,252||Jun 09||1,938||68%|
|Jefferson Health System||Radnor||PA||Dec 13||2,965||Jun 09||1,860||59%|
|University Penn Health System||Philadelphia||PA||Dec 13||2,403||Jun 09||1,163||107%|
|Geisinger Health System||Danville||PA||Dec 13||2,354||Jun 09||901||161%|
|Lehigh Valley Health Network||Allentown||PA||Dec 13||1,153||Jun 09||590||95%|
|Reading Hospital||West Reading||PA||Mar 14||1,107||Jun 09||730||52%|
|Lancaster General Health||Lancaster||PA||Mar 14||1,061||Jun 09||622||71%|
|WellSpan Health||York||PA||Dec 13||852||Jun 09||387||120%|
|Abington Health||Abington||PA||Dec 13||833||Jun 09||518||61%|
|Guthrie Health||Sayre||PA||Dec 13||672||Jun 09||375||79%|
|St Luke's University Health Network||Bethlehem||PA||Dec 13||628||Jun 09||298||111%|
|Pinnacle Health System||Harrisburg||PA||Dec 13||614||Jun 09||304||102%|
|Thomas Jefferson University||Philadelphia||PA||Jun 13||593||Jun 09||491||21%|
|Albert Einstein Healthcare Network||Philadelphia||PA||Dec 13||542||Jun 09||401||35%|
|Susquehanna Health System||Williamsport||PA||Dec 13||418||Jun 09||226||85%|
|Total all 17 Non-Profit Hospital Organizations||28,436||15,538||83%|
|Publicly-held Hospital Companies|
|Universal Health Services||King of Prussia||PA||Dec 13||3,300||Dec 08||1,771||86%|
|Select Medical Holdings||Mechanicsburg||PA||Dec 13||819||Dec 08||(186)||NM|
|Total all 2 Publicly-held Hospital Companies||4,119||1,585||160%|
|Total all 19 Non-Profit & Publicly-held Hospital Organizations||32,555||17,123||90%|
As you can see from the above chart, the Total Net Assets (Financial Strength) of these 19 Pennsylvania Hospital Organizations increased by a phenomenal 90% to $32.555 bil during their average 4.59 years so far of the Obama Administration.
Very positively impacting this massive increase in the Net Assets (Financial Strength) of these 19 Pennsylvania Hospital Organizations 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 increase in Net Assets (Financial Strength) of these 19 Pennsylvania Hospital Organizations.
A remarkable thing is that these exceptional increases in Net Assets (Financial Strength) of these 19 Pennsylvania Hospital Organizations occurred when these 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 incredibly high Net Asset percentage increases of these 19 Pennsylvania Hospital Organizations, a key beneficiary of this will be Pennsylvania citizens electing to buy health insurance on the Health Insurance Exchange. And since the 2 Publicly-held Pennsylvania Hospital Companies have Hospitals located all over the US, citizens in many US States electing to buy health insurance on the Health Insurance Exchange will also be key beneficiaries. This massive Net Asset growth gives these Pennsylvania Hospital Organizations 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.
The Severely Struggling West Penn Allegheny Health System
There are many struggling Pennsylvania Hospitals that are in desperate need of financial help, but none more so than the West Penn Allegheny Health System.
West Penn is located in the Pittsburgh Metro area, where the giant UPMC rules. There is no way the smaller West Penn can compete with such a mega giant.
UPMC had Net Assets of $5.086 bil at December 31, 2013. On the other hand, rather than a Net Asset position, West Penn had a Net Deficit position of $283 mil at September 30, 2013, with its Total Liabilities of $1.542 bil exceeding its Total Assets of $1.259 bil.
West Penn had an Operating Loss of $153 mil in its Fiscal Year Ended June 30, 2013. Its Total Operating Losses were $412 mil for the 4 Fiscal Years Ended June 30, 2013.
Other So Many Pennsylvania Struggling Hospitals
From Pennsylania's excellent Dept of Health website, included was key 2012 financial information related to 168 Pennsylvania General Acute Care Hospitals.
Of these 168 Pennsylvania Hospitals, 37 of them, or 22% of them, had Operating Losses in 2012.
And of these 168 Pennsylvania Hospitals, 35 of them, or 21% of them, had Operating Income as a Percentage of Total Operating Revenues from 0.0% to 2.5%.
The chart below shows these 72 financially struggling Pennsylvania Hospitals, which is a huge 43% of the 168 Total Pennsylvania Hospitals:
|Total Operating Revenue
|Shamokin Area Community||-$3,425||$16,790||-20.4%|
|Ohio Valley General||-$3,189||$55,151||-5.8%|
|Heritage Valley Beaver||-$4,058||$225,543||-1.8%|
|Delaware County Memorial||-$2,632||$184,533||-1.4%|
|Total all 37 Experiencing Operating Losses||-$195,126||$3,858,192||-5.1%|
|Charles Cole Memorial||$365||$70,641||0.5%|
|Saint Vincent Health||$2,393||$247,462||1.0%|
|Total all 35 with Very Modest Operating Profit||$79,095||$6,144,490||1.3%|
When you have so many struggling Pennsylvania Hospitals, the responsible thing to do is to deal with them and not ignore them. So far, the State Governor of Pennsylvania has decided to pretty much ignore them and the overwhelming majority of Pennsylvania citizens must be just furious.
By far the best and only way to put a major dent in West Penn's devastating financial problems and that of the above 72 struggling Pennsylvania Hospitals is for the State of Pennsylvania to fully expand Medicaid and do so immediately. If Pennsylvania did this, with the resultant massive inflow of Patient Revenues from Medicaid expansion, West Penn's Hospitals and the many other struggling Pennsylvania Hospitals would be able to substantially reduce their huge Losses and perhaps even turn their substantial losses into profits. And the Pennsylvania Hospitals with very modest Operating Income would have their profits bolstered very robustly.
If Pennsylvania were to fully expanded Medicaid, one of the key beneficiaries of the resultant very healthy profit improvement and thus also Total Net Assets improvement of not just West Penn Hospitals and of the many other struggling Pennsylvania Hospitals, but also of all Pennsylvania Hospitals, would be Pennsylvania citizens electing to buy health insurance on the Health Insurance Exchange. This exceptional Net Asset growth from Medicaid expansion would give all Pennsylvania 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.