Saturday, March 22, 2014

Rhode Island Non-Profit Hospitals Net Assets Up 23% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 2 Non-Profit Hospital Organizations headquartered in the State of Rhode Island with Net Assets (i.e. Financial Strength or Total Assets minus Total Liabilities) at the most recent date of more than $300 mil each.

Below here are the Net Assets of these 2 Rhode Island Hospital Organizations 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

Balance Sheet Assets

Most Recent
Sheet Net %

Recent Balance
Date Assets Change

Balance Sheet
Beginning Beginning During
City State Sheet Net
Obama Obama Obama
Rhode Island Hospital Organization HQs HQs Date Assets
Admin Admin Admin

mil $s

mil $s

LifeSpan Providence RI Dec 13     1,479
Sep 09       1,225 21%
Care New England Health Providence RI Dec 13        389
Sep 09           290 34%

Total of both


       1,515 23%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 2 Rhode Island Non-Profit Hospital Organizations increased by 23% to $1.868 bil for their 4.25 years during the Obama Administration.

The State of Rhode Island has elected to fully expand Medicaid, which substantially improves the profits and thus also the Net Assets of all Rhode Island Hospitals, particularly the ones that are struggling financially.  When you combine this with the fact that these 2 Rhode Island Hospitals have increased their Net Assets by 23% for 4.25 years during the Obama Administration, a key beneficiary here will be Rhode Island citizens electing to buy health insurance on the Health Insurance Exchange.  This solid Net Asset growth gives these Rhode Island 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.