Unlike Non-Profit Hospital Organizations in so many other US States, the finance function in Illinois Non-Profit Hospital Organizations appears to be top caliber, with very clear disclosures and incredibly timely filings of financial statements on EMMA.
These 14 Illinois Non-Profit Hospital Organizations generated Total Bottom Line Net Income of an exceptional 10.8% of Total Operating Revenues in 2013 and of a superb 9.9% for the most recent 4 years combined. These exceptionally strong Net Income Margins even exceeded that of the 30 Dow Industrials combined.
The main contributors to these outstanding operating results in both 2013 and in the 4 years combined were Oak Brook-based Advocate HealthCare Network and Chicago-based Northwestern Memorial Health Care. Incredibly, 8 of these 14 Illinois Non-Profit Hospital Organization posted Net Income Margins of 10.0% or higher in both 2013 and for the 4 years combined.
The only problem with these exceptional operating results 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 Illinois 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 14 Illinois Non-Profit Hospital Organizations for 2013, for 2012 and for the most recent 4 years combined:
|Most||2013||2012||2010-13||4 Year||4 Year|
|Illinois 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||%|
|Little Co Mary Hosps&Healthcare||Evergreen Park||Jun 13||54||199||27.1%||14||194||7.2%||194||793||24.5%|
|Northwestern Memorial Health||Chicago||Aug 13||309||1,710||18.1%||122||1,702||7.2%||878||6,654||13.2%|
|Advocate HealthCare Network||Oak Brook||Dec 13||765||4,938||15.5%||672||4,596||14.6%||2,399||18,267||13.1%|
|Cadence Health||Winfield||Jun 13||147||1,127||13.0%||103||1,007||10.2%||489||3,452||14.2%|
|St George||Palos Heights||Dec 13||47||391||12.0%||47||375||12.5%||168||1,480||11.4%|
|University Chicago Med Ctr||Chicago||Jun 13||141||1,337||10.5%||140||1,290||10.9%||692||4,954||14.0%|
|Memorial Health System||Springfield||Sep 13||79||760||10.4%||93||755||12.3%||232||2,926||7.9%|
|Southern Illinois Healthcare||Carbondale||Mar 13||44||439||10.0%||9||385||2.3%||165||1,544||10.7%|
|Northwest Community Healthcare||Arlington Heights||Sep 13||41||483||8.5%||57||493||11.6%||87||1,891||4.6%|
|Hospital Sisters Health System||Springfield||Jun 13||168||2,008||8.4%||(12)||1,930||-0.6%||473||7,636||6.2%|
|NorthShore Univ Health System||Evanston||Sep 13||126||1,816||6.9%||192||1,756||10.9%||523||6,773||7.7%|
|Rush University Medical Center||Chicago||Jun 13||111||1,838||6.0%||67||1,747||3.8%||427||6,887||6.2%|
|OSF Healthcare System||Peoria||Sep 13||67||1,999||3.4%||160||1,904||8.4%||245||7,297||3.4%|
|Total all 14||2,142||19,804||10.8%||1,736||18,847||9.2%||7,290||73,325||9.9%|
There is a very positive aspect to these excessively high Bottom Line Profits of these Illinois Non-Profit Hospital Organizations. These incredibly high Profits are getting added to the Net Assets (Financial Strength) of these Illinois Hospital Organizations.
Thus a key beneficiary of this should be Illinois 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 Illinois 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 Illinois 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 Illinois' case which should drive down Health Insurance Premiums on the Health Insurance Exchange even more. Illinois 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.