Indiana Non-Profit Hospital Organizations Net Income 10.0% of Revenues in 2013 and 11.3% in 2012

From a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA) as well as at the State of Indiana's Dept of Health website, I found 10 Indiana Non-Profit Hospital Organizations with Net Assets above $400 mil each.

One of these 10 Indiana Non-Profit Hospitals.....Community Health Network.... still hasn't published its December 2013 financial statements yet and thus I only included for 2013 below its 9 months ended September 30, 2013 operating data.  When it publishes its December 2013 financial statements, I'll then update the amounts included in the chart below.

These 10 Indiana Non-Profit Hospital Organizations generated Total Bottom Line Net Income in 2013 which was an exceptionally high 10.0% of Total Operating Revenues, which was down from the comparable off-the-charts 11.3% Income Margin in 2012.  For the most recent 4 years combined, this Total Bottom Line Profit Margin was a still way too high 9.4%, with 7 of the 10 posting Income Margins of 8.5% or better.

Altogether 5 of these 10 Indiana Non-Profit Hospital Organizations generated Bottom Line Net Income Margins of above 10.0% in both 2013 and in 2012.  All 5 of them in both years had Bottom Line Profit Margins exceeding that of the 30 Dow Industrials combined.  Instead of taking the high road and responsibly reducing their Patient Service Pricing, these 5 Indiana 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 10 Indiana 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
Indiana 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
Parkview Health System	Fort Wayne	Dec 13	174	1,141	15.2%		130	1,073	12.1%		334	3,912	8.5%
St Mary's Health	Evansville	Jun 13	78	518	15.1%		54	488	11.1%		272	1,903	14.3%
St Vincent Health	Indianapolis	Jun 13	328	2,761	11.9%		222	2,677	8.3%		1,265	9,292	13.6%
Beacon Health System	South Bend	Dec 13	90	821	11.0%		182	886	20.5%		305	2,584	11.8%
Indiana University Health	Indianapolis	Dec 13	541	5,247	10.3%		719	5,578	12.9%		1,712	19,194	8.9%
Franciscan Alliance	Mishawaka	Dec 13	245	2,609	9.4%		253	2,627	9.6%		851	9,823	8.7%
Deaconess Health System	Evansville	Sep 13	52	696	7.5%		47	677	6.9%		162	2,583	6.3%
Reid Hospital	Richmond	Dec 13	25	339	7.4%		13	352	3.7%		9	1,252	0.7%
Community Foundtn NW Ind	Munster	Jun 13	40	891	4.5%		45	861	5.2%		170	3,280	5.2%
Community Health Network	Indianapolis	Dec 13	53	1,272	4.2%		191	1,175	16.3%		433	4,857	8.9%
Total all 10			1,626	16,295	10.0%		1,856	16,394	11.3%		5,513	58,680	9.4%

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

Thus a key beneficiary of this should be Indiana 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 Indiana 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 Indiana 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.