Montana Non-Profit Hospital Organizations Net Income Only 6.8% of Revenues in 2013 and 6.1% in 2012

From a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA), I found 2 Montana Non-Profit Hospital Organizations with Net Assets above $200 mil each.

These 2 Montana Non-Profit Hospital Organizations generated Total Bottom Line Net Income of a very reasonable 6.8% of Total Operating Revenues in 2013 and a more modest 6.1% in 2012.

Below are the Bottom Line Net Income and Total Operating Revenues for both of these Montana Non-Profit Hospital Organizations for both 2013 and 2012:

		Most	2013				2012
		Recent	Bottom	2013	2013		Bottom	2012	2012
		Fiscal	Line	Total	Net		Line	Total	Net
		Year	Net	Operating	Income		Net	Operating	Income
Montana Hospital Organ	City HQs	End	Income	Revenues	Margin		Income	Revenues	Margin
			mil $s	mil $s	%		mil $s	mil $s	%
Non-Profit Hospitals
Benefis Health System	Great Falls	Dec 13	15	329	4.6%		17	341	5.0%
Bozeman Deaconess Health Services	Bozeman	Dec 13	22	213	10.3%		16	197	8.1%
Total of both			37	542	6.8%		33	538	6.1%

More than anything, Hospital Patient Charges drive US Health Care Costs.  When you view a typical US Hospital bill for patient services, it is easy to understand why US Health Care Costs are so much higher than that in any other major country.

One reason US Hospital bills are so high is that many of the larger Non-Profit Hospitals Systems set their pricing for hospital procedures so that they make a lot of money and retain it tax free, further increasing their already massive treasure chest of Investments in Equity and Debt Securities, which also grow tax free.

Thus, US Hospitals are playing a key role in determining ultimately whether health insurance premiums are fairly priced on the health insurance exchanges.

Well, as you can see from the above modest profit amounts, Montana is one State whose larger Non-Profit Hospital Organizations, for the most part, are not being greedy in generating high profits.

With Montana Hospitals generating such modest profits, a key beneficiary will be Montana citizens buying health insurance on the Health Insurance Exchange.  Montana Hospitals, for the most part, have not been nor will they be baking in excessive Hospital profits demands in their negotiations with health insurance companies on pricing for hospital procedures which ultimately determines what insurance premiums are set by health insurance companies on the Health Insurance Exchange.