|mil $s||mil $s|
|Providence Health||Renton||WA||Dec 13||7,317||Dec 08||3,911||87%|
|Seattle Children's Healthcare||Seattle||WA||Dec 13||1,914||Sep 09||1,195||60%|
|MultiCare Health System||Tacoma||WA||Mar 14||1,815||Dec 08||650||179%|
|PeaceHealth||Vancouver||WA||Dec 13||1,709||Jun 09||897||91%|
|Univ Washington Med Center||Seattle||WA||Jun 13||669||Jun 09||495||35%|
|Harborview Medical Center||Seattle||WA||Jun 13||622||Jun 09||662||-6%|
|Virginia Mason Medical Center||Seattle||WA||Dec 13||408||Dec 08||195||109%|
|Overlake Hospital Association||Bellevue||WA||Dec 13||406||Jun 09||199||104%|
|Total all 8||14,860||8,204||81%|
As you can see from the above chart, the Total Net Assets (Financial Strength) of these 8 Washington Non-Profit Hospital Organizations increased by a spectacular 81% to $14.860 bil during their average 4.56 years so far of the Obama Administration.
Very positively impacting this major increase in the Net Assets (Financial Strength) of these 8 Washington 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 increase in Net Assets (Financial Strength) of these 8 Washington Non-Profit Hospital Organizations.
A remarkable thing is that these 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 substantial Net Asset percentage increases of these 8 Washington Hospitals, a key beneficiary of this will be Washington citizens electing to buy health insurance on the Health Insurance Exchange. This exceptional Net Asset growth gives these Washington 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.
Washington State Struggling Hospitals
The State of Washington is being very transparent with its citizens by having available for review annually at its Health Information website very detailed financial information on each of its individual Hospitals. The most recent financial information is for 2012.
There were 86 Washington Hospitals which had Operating Results shown at the Washington website in either 2012 or 2011. These 86 Washington Hospitals had Total Operating Income of $844 mil in their most recent fiscal year shown which was a very respectable 5.0% of their Total Operating Revenues of $16.736 bil. And these 86 Washington Hospitals' Total Operating Income of $844 mil was burdened with an Earnings Charge of $936 mil due to Total Provisions for Bad Debts. In addition, their Total Uncompensated Charity Care Costs were quite huge.
But you have to stratify these Hospitals to find out what is really going on with Washington Hospitals.
First, let's look at the upper end Washington Hospitals. There were 15 Washington Hospitals generating an Operating Income Margin of higher than 9.5%. These 15 High Profit Washington Huskies generated a Total Operating Income Margin of an obscene 13.4%.
But on the downside, there were 21 Washington Hospitals which had Operating Losses and another 18 with very modest Operating Income Margins of 0.0% to 2.5%.
Below here are these 86 Washington Huskies:
|Hospital Name||City HQs||End||(Loss)||Revenues||Margin|
|mil $s||mil $s||%|
|Pure Golden Washington Husky Hospitals|
|Mary Bridge Children's Hospital||Tacoma||2012||51.5||209.4||24.6%|
|BHC Fairfax Hospital||Kirkland||Dec 11||5.2||30.4||17.1%|
|St. Elizabeth Hospital||Enumclaw||2012||7.6||50.5||15.0%|
|Capital Medical Center||Olympia||Dec 11||11.7||84.5||13.8%|
|Seattle Children's Hospital||Seattle||2012||128.3||949.7||13.5%|
|Saint Joseph Medical Center||Tacoma||2012||79.7||600.1||13.3%|
|Kindred Hospital Seattle||Seattle||Dec 11||2.7||20.6||13.1%|
|Swedish Medical Center-Cherry Hill||Seattle||2012||47.0||361.7||13.0%|
|Providence Mount Carmel Hospital||Colville||2012||4.9||40.3||12.2%|
|Tacoma General Allenmore Hospital||Tacoma||2012||76.7||672.4||11.4%|
|Saint Francis Community Hospital||Federal Way||2012||20.6||189.6||10.9%|
|Yakima Regional Medical & Cardiac Ctr||Yakima||2012||12.1||122.9||9.8%|
|Odessa Memorial Hospital||Odessa||2012||0.7||7.3||9.6%|
|Total all 15 Pure Golden Huskies||461.2||3,452.0||13.4%|
|In-The-Middle Washington Husky Hospitals|
|Kadlec Medical Center||Richland||2012||23.4||312.4||7.5%|
|PeaceHealth Saint Joseph Hospital||Bellingham||2012||30.5||423.1||7.2%|
|Samaritan Hospital||Moses Lake||2012||4.5||62.9||7.2%|
|Jefferson Healthcare||Port Townsend||2012||4.9||69.5||7.1%|
|Providence Holy Family Hospital||Spokane||2012||12.5||179.7||7.0%|
|University of Washington Medical Center||Seattle||2012||59.1||877.6||6.7%|
|Providence Sacred Heart Medical Center||Spokane||2012||50.1||745.3||6.7%|
|Sunnyside Community Hospital||Sunnyside||2012||3.2||48.6||6.6%|
|Seattle Cancer Care Alliance||Seattle||2012||21.9||346.6||6.3%|
|Dayton General Hospital||Dayton||2012||0.7||11.2||6.3%|
|MultiCare Good Samaritan Hospital||Puyallup||2012||23.0||380.1||6.1%|
|Cascade Valley Hospital||Arlington||2012||2.6||44.1||5.9%|
|Whitman Hospital & Medical Center||Colfax||2012||1.4||23.9||5.9%|
|PeaceHealth Saint John Med Center||Longview||Jun 11||14.2||247.3||5.7%|
|Mason General Hospital||Shelton||2012||4.1||72.4||5.7%|
|Providence Saint Mary Medical Center||Walla Walla||Dec 11||6.8||120.9||5.6%|
|Wenatchee Valley Hospital||Wenatchee||Dec 11||5.1||98.1||5.2%|
|Toppenish Community Hospital||Toppenish||2012||1.1||21.2||5.2%|
|Kittitas Valley Hospital||Ellensburg||2012||3.1||60.1||5.2%|
|Saint Luke's Rehab Institute||Spokane||2012||2.0||39.0||5.1%|
|Saint Anthony Hospital||Gig Harbor||2012||4.8||100.9||4.8%|
|Legacy Salmon Creek||Vancouver||2012||9.1||200.7||4.5%|
|Overlake Hospital Medical Center||Bellevue||2012||18.1||413.1||4.4%|
|Saint Clare Hospital||Tacoma||2012||5.5||127.0||4.3%|
|Quincy Valley Hospital||Quincy||2012||0.5||12.2||4.1%|
|Skyline Hospital||White Salmon||2012||0.6||19.2||3.1%|
|Skagit Valley Hospital||Mount Vernon||2012||7.6||246.5||3.1%|
|Virginia Mason Hospital||Seattle||2012||28.1||954.8||2.9%|
|Pullman Regional Hospital||Pullman||2012||1.4||48.7||2.9%|
|Summit Pacific Medicaln Center||Elma||2012||0.3||10.7||2.8%|
|Providence Centralia Hospital||Centralia||Dec 11||3.7||134.4||2.8%|
|Central Washington Hospital||Wenatchee||2012||5.5||205.0||2.7%|
|Total all In-The-Middle Huskies||359.4||6,657.2||5.4%|
|Loss or Low Profit Husky Hospitals|
|Providence Saint Peter Hospital||Olympia||Dec 11||9.5||379.2||2.5%|
|Harrison Medical Center||Bremerton||2012||8.6||345.2||2.5%|
|Harborview Medical Center||Seattle||2012||18.1||765.8||2.4%|
|Swedish Medical Center||Seattle||Dec 11||23.1||1,030.8||2.2%|
|PeaceHealth Southwest Medical Center||Vancouver||2012||10.6||514.8||2.1%|
|Tri-State Memorial Hospital||Clarkston||2012||1.1||57.6||1.9%|
|Lake Chelan Community Hospital||Chelan||2012||0.4||21.1||1.9%|
|Kennewick General Hospital||Kennewick||Dec 11||2.6||141.1||1.8%|
|Snoqualmie Valley Hospital||Snoqualmie||2012||0.4||25.2||1.6%|
|Coulee Community Hospital||Grand Coulee||Dec 11||0.3||23.9||1.3%|
|Morton General Hospital||Morton||2012||0.2||22.5||0.9%|
|Yakima Valley Memorial Hospital||Yakima||2012||2.9||352.5||0.8%|
|Providence Regional Med Ctr-Everett||Everett||2012||3.9||551.1||0.7%|
|Newport Community Hospital||Newport||2012||0.1||23.7||0.4%|
|Olympic Medical Center||Port Angeles||2012||0.1||133.5||0.1%|
|Lourdes Medical Center||Pasco||2012||(0.6)||86.2||-0.7%|
|Three Rivers Hospital||Brewster||2012||(0.1)||12.4||-0.8%|
|Lourdes Counseling Center||Richland||2012||(0.2)||14.8||-1.4%|
|Providence Saint Joseph's Hosp-Chewelah||Chewelah||Dec 11||(0.3)||20.1||-1.5%|
|Deaconess Hospital||Spokane||Dec 11||(5.4)||244.0||-2.2%|
|Lincoln Hospital||Davenport||Dec 11||(0.5)||21.2||-2.4%|
|North Valley Hospital||Tonasket||Dec 11||(0.6)||20.3||-3.0%|
|Valley Medical Center||Renton||2012||(7.3)||217.8||-3.4%|
|Cascade Medical Center||Leavenworth||2012||(0.5)||12.7||-3.9%|
|Grays Harbor Community Hospital||Aberdeen||2012||(5.0)||103.0||-4.9%|
|Regional Hosp for Respirator&Complex Care||Burien||Dec 11||(1.1)||20.1||-5.5%|
|Klickitat Valley Hospital||Goldendale||2012||(1.1)||17.5||-6.3%|
|Garfield County Memorial Hospital||Pomeroy||Dec 11||(0.4)||6.3||-6.3%|
|United General Hospital||Sedro-Woolley||2012||(3.5)||39.7||-8.8%|
|Highline Medical Center||Seattle||Dec 11||(18.2)||197.3||-9.2%|
|Columbia Basin Hospital||Ephrata||2012||(1.2)||12.9||-9.3%|
|Valley General Hospital||Monroe||Dec 11||(4.5)||45.2||-10.0%|
|MultiCare Auburn Regionl Medical Ctr||Auburn||2012||(10.7)||106.7||-10.0%|
|East Adams Rural Hospital||Ritzville||2012||(0.7)||4.7||-14.9%|
|Total all 39 Low Profit or Loss Huskies||23.1||6,627.2||0.3%|
|Total all 86 Washington Husky Hospitals||843.7||16,736.4||5.0%|
At first glance, an overall Total Operating Margin of 5.0% seems very positive for Washington Hospitals.
But when 21 of these 86 Washington Hospitals had Operating Losses and 39 of them, or 45% of them, posted Operating Income of a very modest 2.5% or less, there is a financial quality problem with Washington Hospitals that must be fixed.
By far the best and only economically good way to put a major dent in the Operating Losses of the many struggling Washington Hospitals is for the State of Washington to fully expand Medicaid, which it wisely has done. Since Washington did this, there will be a resultant massive inflow of Patient Revenues from Medicaid expansion, after all there were $936 mil of Total Provisions for Bad Debts Charges that reduced the Total Operating Revenues of all Washington Hospitals in their most recent year shown. In addition, there were huge Uncompensated Charity Care Costs in that same year.
With this massive inflow of Revenues due to Medicaid expansion in Washington, the struggling Washington Hospitals will be able to substantially reduce their Operating Losses and a huge majority of them should even be able to turn their losses into profits. And due to Medicaid expansion, the Washington Hospitals with very modest Operating Income will have their profits bolstered very robustly, as will the Washington Hospitals now making higher than modest Operating Income.
Also since Washington fully expanded Medicaid, another key beneficiary of the resultant very healthy profit improvement and thus also Total Net Assets improvement of all Washington Hospitals will be the Washington citizens electing to buy health insurance on the Health Insurance Exchange. This exceptional Net Asset growth from Medicaid expansion should in all fairness give all Washington 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.