Alaska Non-Profit Hospital Organization Net Income 14.8% of Revenues in 2013 and 14.1% in 2012

From a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA), I found 1 Alaska Non-Profit Hospital Organization with Net Assets above $400 mil.  The Alaska Region of the massive Providence Health Services had Total Net Assets of a huge $937 mil at December 31. 2013.

The Alaska Region of Providence Health generated Total Bottom Line Net Income of a spectacularly off-the-charts 14.8% of Total Operating Revenues in 2013 and another spectacularly off-the-charts 14.1% of Total Operating Revenues in 2012.  Whew!

These spectacular Net Income Margin Percentages were substantially higher that of the 30 Dow Industrials combined.

The only problem with these exceptional operating results in both 2013 and in 2012 was that instead of taking the high road and responsibly reducing its Patient Service Pricing, the Alaska Region of Providence Health elected to retain these excessively high Bottom Line Profits, which also added to both its Net Assets and its treasure chest of Investments in Stocks and Bonds.

Below are the Bottom Line Net Income and Total Operating Revenues for the Alaska Region of Providence Health Services for 2013 and for 2012:

			2013				2012
		Recent	Bottom	2013	2013		Bottom	2012	2012
		Fiscal	Line	Total	Net		Line	Total	Net
		Year	Net	Operating	Income		Net	Operating	Income
Alaska Hospital Organization	City HQs	End	Income	Revenues	Margin		Income	Revenues	Margin
			mil $s	mil $s	%		mil $s	mil $s	%
Non-Profit Hospital
Providence Health Alaska Region	Anchorage	Dec 13	114	771	14.8%		103	731	14.1%

There is a very positive aspect to these excessively high Bottom Line Profits of the The Alaska Region of Providence Health Services Non-Profit Hospital Organization.  These incredibly high Profits are getting added to the Net Assets (Financial Strength) of the Alaska Region of Providence Health.

Thus a key beneficiary of this should be Alaska 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 The Alaska Region of Providence Health the financial flexibility to moderate its pricing for hospital and other health care procedures in its 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 The Alaska Region of Providence Health Non-Profit Hospital Organization, 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.