|mil $s||mil $s|
|Non-Profit Hospital Organizations|
|St Jude Children's Research Hospital||Memphis||TN||Mar 14||3,424||Jun 09||1,907||80%|
|Baptist Memorial Health Care||Memphis||TN||Dec 13||1,840||Sep 09||1,501||23%|
|Methodist Le Bonheur Healthcare||Memphis||TN||Dec 13||1,189||Dec 08||451||164%|
|Covenant Health||Knoxville||TN||Dec 13||987||Dec 08||614||61%|
|Mountain States Health Alliance||Johnson City||TN||Dec 13||698||Jun 09||450||55%|
|West Tennessee Healthcare||Jackson||TN||Dec 13||535||Jun 09||425||26%|
|Wellmont Health System||Kingsport||TN||Dec 13||520||Jun 09||325||60%|
|Total all 7 Non-Profit Hospital Organizations||9,193||5,673||62%|
|Publicly-held Hospital Companies|
|Community Health Systems||Franklin||TN||Mar 14||3,786||Dec 08||1,673||126%|
|LifePoint Hospitals||Brentwood||TN||Mar 14||2,143||Dec 08||1,656||29%|
|Amsurg||Nashville||TN||Mar 14||1,146||Dec 08||463||148%|
|Acadia Healthcare||Franklin||TN||Mar 14||496||Dec 08||16||3000%|
|HCA||Nashville||TN||Mar 14||(6,467)||Dec 08||(9,260)||30%|
|Total all 5 Publicly-held Hospital Companies||1,104||(5,452)||NM|
|Total all 12 Non-Profit & Publicly-held Hospital Organizations||10,297||221||4559%|
As you can see from the above chart, the Total Net Assets (Financial Strength) of these 12 Tennessee Hospital Organizations increased by a phenomenally off-the-charts 4,559% from only $0.221 bil to $10.297 bil during their average 4.90 years so far of the Obama Administration.
Very positively impacting this massive increase in the Net Assets (Financial Strength) of these 12 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 12 Tennessee Hospital Organizations.
A remarkable thing is that these robust increases in Net Assets (Financial Strength) of these Tennessee 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 incredible, almost unbelievable, Net Asset percentage increases of these 12 Tennessee Hospitals, a key beneficiary of this will be Tennessee citizens electing to buy health insurance on the Health Insurance Exchange. And since the 5 Publicly-held Tennessee 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 Tennessee Hospital Organizations 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.
None of the above amounts have anything to do with Vanderbilt University since Vanderbilt hasn't disclosed the amount of its Total Net Assets (Financial Strength or Excess of Total Assets over Total Liabilities) related to its renown Health Institutions, which are very salient to the Affordable Care Act (ACA).
Thanks primarily to the exceptional stock market during the Obama Administration, Vanderbilt University as a whole has seen its Total Net Assets grow by 31% during its most recent 4 Fiscal Years (FYs) ending June 30, 2013, going from $4.078 bil at June 30, 2009 to $5.339 bil at June 30, 2013. These 4 FYs are completely during the Obama Administration.
Below here are the Total Operating Revenues and Total Operating Expenses of Vanderbilt University's Health Care Operations for each of the most recent 4 FYs:
|Vanderbilt University: Health Care Operating Results|
|FY 2013||FY 2012||FY 2011||FY 2010||FYs|
|mil $s||mil $s||mil $s||mil $s||mil $s|
|Health Care Operating Revenues||2,394||2,462||2,427||2,279||9,562|
|Health Care Operating Expenses||2,326||2,221||2,180||2,059||8,786|
|=Health Care Operating Income||68||241||247||220||776|
|HC Oper Income as % of HC Oper Revenues||2.8%||9.8%||10.2%||9.7%||8.1%|
The really negative part above related to the goal of controlling Total US Heath Care Costs is that Vanderbilt University's Health Care Operating Income as a Percentage of its Health Care Operating Revenues was exceedingly high in each of the 3 FYs June 2012, 2011 and 2010, in a range of 9.7% to 10.2%. This 9.7% to 10.2% doesn't have any Investment Returns in it, but it still is a bit higher than the Total Bottom Line Profit as a Percentage of Total Revenues for the pristine 30 Dow Industrial Companies. This isn't right.....not even close to being right.
On the positive side related to the goal of controlling Total US Heath Care Costs is that Vanderbilt University's Health Care Operating Income as a Percentage of its Health Care Operating Revenues in the most recent FY June 2013 dropped dramatically to 2.8%.
The key beneficiaries of this substantially reduced Vanderbilt University Health Care Profit Margin Percentages in the most recent year will be Tennessee citizens electing to buy health insurance on the Health Insurance Exchange.
Tennessee Many Struggling Hospitals
The State of Tennessee in its Dept of Health website discloses key operating statement information annually for each of its Tennessee individual Hospitals. The most recent annual Hospital Operating Statement information contained there was for annual fiscal year ended in 2012.
There were 162 individual Tennessee Hospitals presented in the Tennessee Dept of Health website. Of these 162, 130 of them were either General Hospitals, Specialty Hospitals or Medical Centers.
Of these 130 General Hospitals, Specialty Hospitals or Medical Centers, an amazingly high number of 41 of them, or 32% of them, experienced Operating Losses in 2012. Below here is a list of these 41:
|County||Or Medical Center||(Loss)||Revenues||Margin|
|Haywood||Haywood Park Community Hospital||(5,268)||6,608||-79.7%|
|Carroll||McKenzie Regional Hospital||(5,094)||11,959||-42.6%|
|Sumner||Portland Medical Center||(234)||581||-40.3%|
|Hickman||Hickman Community Hospital||(3,056)||9,923||-30.8%|
|McMinn||Woods Memorial Hospital||(5,453)||18,282||-29.8%|
|Henderson||Henderson County Community Hospital||(3,243)||12,058||-26.9%|
|Smith||Riverview Regional Medical Center South||(4,227)||18,879||-22.4%|
|Marion||Grandview Medical Center||(5,137)||25,941||-19.8%|
|Clay||Cumberland River Hospital||(1,433)||7,459||-19.2%|
|Roane||Roane Medical Center||(5,025)||30,151||-16.7%|
|Houston||Patients' Choice Medical Center of Erin||(1,036)||6,415||-16.1%|
|Bedford||Heritage Medical Center||(5,260)||33,576||-15.7%|
|McNairy||McNairy Regional Hospital||(2,531)||16,998||-14.9%|
|Carroll||Baptist Memorial Hospital-Huntingdon||(2,008)||13,677||-14.7%|
|Davidson||Skyline Medical Center Campus||(2,757)||23,344||-11.8%|
|Gibson||Gibson General Hospital||(687)||6,031||-11.4%|
|Hamblen||Lakeway Regional Hospital||(4,278)||38,150||-11.2%|
|Shelby||Baptist Memorial Hospital-Collierville||(5,542)||50,741||-10.9%|
|Greene||Laughlin Memorial Hospital||(5,427)||57,261||-9.5%|
|Weakley||Volunteer Community Hospital||(1,877)||25,159||-7.5%|
|Coffee||Medical Center of Manchester||(831)||11,344||-7.3%|
|Unicoi||Unicoi County Memorial Hospital||(1,009)||16,255||-6.2%|
|Shelby||Baptist Memorial Hospital for Women||(4,222)||72,836||-5.8%|
|Dickson||Horizon Medical Center||(3,912)||68,351||-5.7%|
|Gibson||Humboldt General Hospital||(409)||7,343||-5.6%|
|Loudon||Fort Loudon Medical Center||(1,315)||25,769||-5.1%|
|Hancock||Wellmont Hancock County Hospital||(281)||5,580||-5.0%|
|Blount||Blount Memorial Hospital||(6,445)||168,246||-3.8%|
|Shelby||Delta Medical Center||(1,608)||43,723||-3.7%|
|Hamilton||Erlanger Medical Center||(14,813)||491,009||-3.0%|
|Macon||Macon County General Hospital||(310)||10,487||-3.0%|
|Washington||Franklin Woods Community Hospital||(1,077)||49,226||-2.2%|
|Cheaton||Centennial Medical Center Ashland City||(182)||9,482||-1.9%|
|Hamblen||Morristown-Hamblen Healthcare System||(1,245)||83,122||-1.5%|
|Shelby||Methodist Healthcare-Memphis Hospitals||(5,793)||542,196||-1.1%|
|Davidson||Metro Nashville General Hospital||(762)||102,513||-0.7%|
|Sevier||LeConte Medical Center||(449)||61,241||-0.7%|
|Cumberland||Cumberland Medical Center||(107)||96,474||-0.1%|
|Total all 41||(127,922)||2,531,678||-5.1%|
When a State has 32% of its Hospitals generating Operating Losses, then it has a huge problem with the financial quality of its State Hospitals.
By far the best and only way to solve this financially devastating problem is for the State of Tennessee to fully expand Medicaid and quickly. If Tennessee did this, with the resultant massive inflow of Patient Revenues from Medicaid expansion, all of these financially struggling Tennessee Hospitals would get substantial operating profit improvement and thus also a very nice Net Asset improvement.
If Tennessee were to expand Medicaid, one of the key beneficiaries of this resultant very healthy improvement in the Total Net Assets of all Tennessee Hospitals would be Tennessee citizens electing to buy health insurance on the Health Insurance Exchange. This exceptional Net Asset growth from Medicaid expansion would give all Tennessee 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.