These 2 Delaware Non-Profit Hospital Organizations generated Total Bottom Line Net Income of a spectacularly off-the-charts 13.5% of Total Operating Revenues in 2013. For the most recent 4 years combined (2010-2013), their Total Bottom Line Net Income Margin was also spectacular at 12.5%.
These spectacular Net Income Margin Percentages were substantially higher that of the 30 Dow Industrials combined.
The only problem with these exceptional operating results of these Delaware Non-Profit Hospital Organizations in both 2013 and for all 4 years combined was that instead of taking the high road and responsibly reducing their Patient Service Pricing, these Delaware Non-Profit Hospital Organizations elected to retain these excessively high Bottom Line Profits, which also added to both their Net Assets and their treasure chest of Investments in Stocks and Bonds.
Below are the Bottom Line Net Income and Total Operating Revenues for both of these Delaware Non-Profit Hospital Organizations for both 2013 and for the most recent 4 years combined:
|Most||2013||2010-13||4 Year||4 Year|
|Delaware Hosp Organ||City HQs||End||Income||Revenues||Margin||Income||Revenues||Margin|
|mil $s||mil $s||%||mil $s||mil $s||%|
|BayHealth Medical Ctr||Dover||Jun 13||74||482||15.4%||264||1,722||15.3%|
|Christiana Care Health Services||Wilmington||Jun 13||185||1,441||12.8%||627||5,426||11.6%|
|Total of both||259||1,923||13.5%||891||7,148||12.5%|
There is a very positive aspect to these excessively high Bottom Line Profits of these Delaware Non-Profit Hospital Organizations. These incredibly high Profits are getting added to the Net Assets (Financial Strength) of these Delaware Hospital Organizations.
Thus a key beneficiary of this should be Delaware 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 Delaware 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 these two large Delaware Non-Profit Hospital Organizations, 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.
And there's an added factor in Delaware's case which should drive down Health Insurance Premiums on the Health Insurance Exchange even more. Delaware passed full Medicaid expansion and there is an additional real beauty with full Medicaid expansion. It increases nearly every Hospital's profits so much that Hospitals just have to reduce their Hospital charges very substantially and they also will be much more reasonable in negotiating Hospital Charges with Health Insurance Companies. Thus it is only logical that this will also result in much lower Health Insurance Premiums on the Health Insurance Exchange.