Alabama Non-Profit Hospital Organizations Net Income 9.8% of Revenues in 2013 and 10.6% in 2012

From a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA), I found 3 Alabama Non-Profit Hospital Organizations with Net Assets above $400 mil each.

These 3 Alabama Non-Profit Hospital Organizations generated Total Bottom Line Net Income which was an exceptionally high 9.8% of Total Operating Revenues in 2013 and an even higher 10.6% in 2012.  For the most recent 4 years combined, this Total Bottom Line Profit Margin was a still incredibly high 10.0%.

All of these exceptional Alabama Non-Profit Hospital Net Income Margins exceeded that of the 30 Dow Industrials combined.  Instead of taking the high road and responsibly reducing their Patient Service Pricing, two of these 3 Alabama Non-Profit Hospital Organizations elected to retain these excessively high Bottom Line Profits, which also added to both their Net Assets and treasure chest of Investments in Stocks and Bonds.

Below are the Bottom Line Net Income and Total Operating Revenues for each of these 3 Alabama Non-Profit Hospital Organizations for 2013, for 2012 and for the most recent 4 years combined:
 

											4 Year
		Most	2013				2012				2010-13	4 Year	4 Year
		Recent	Bottom	2013	2013		Bottom	2012	2012		Bottom	2010-13	2010-13
		Fiscal	Line	Total	Net		Line	Total	Net		Line	Total	Net
		Year	Net	Operating	Income		Net	Operating	Income		Net	Operating	Income
Alabama Hospital Organ	City HQs	End	Income	Revenues	Margin		Income	Revenues	Margin		Income	Revenues	Margin
			mil $s	mil $s	%		mil $s	mil $s	%		mil $s	mil $s	%
Non-Profit Hospitals
UAB Health System	Birmingham	Sep 13	170	1,287	13.2%		173	1,203	14.4%		544	4,622	11.8%
Children's Hospital Alabama	Birmingham	Dec 13	87	666	13.1%		64	563	11.4%		322	2,316	13.9%
City Huntsville Health Care Auth	Huntsville	Jun 13	29	969	3.0%		39	844	4.6%		164	3,337	4.9%
Total all 3 Non-Profit Hospitals			286	2,922	9.8%		276	2,610	10.6%		1,030	10,275	10.0%

There is a very positive aspect to these excessively high Bottom Line Profits of these Alabama Non-Profit Hospital Organizations.  These incredibly high Profits are getting added to the Net Assets (Financial Strength) of these Alabama Hospital Organizations.

Thus a key beneficiary of this should be Alabama citizens electing to buy health insurance on the Health Insurance Exchange.  This exceptional Net Asset growth driven by these exceedingly high Bottom Line Profits gives these Alabama 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.

And armed with audited financial data concerning the excessively high profits earned by these large Alabama Non-Profit Hospital Organizations in the past 4 years, Health Insurance Companies should be able to do a much better job in representing their policy holders, including those getting Health Insurance on the Health Insurance Exchange.