Monday, April 14, 2014

Nebraska Non-Profit Hospital Organizations Net Income 8.6% of Revenues in 2013

From a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA), I found 5 Nebraska Non-Profit Hospital Organizations with Net Assets above $400 mil each.

These 5 Nebraska Non-Profit Hospital Organizations generated Total Bottom Line Net Income of a very strong 8.6% of Total Operating Revenues in 2013 and also of 8.2% in 2012.

The only problem with these strong operating results in 2013 for these Nebraska Non-Profit Hospital Organizations was that instead of taking the high road and responsibly reducing their Patient Service Pricing, these Nebraska 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 each of these 5 Nebraska Non-Profit Hospital Organizations for 2013 and for 2012:

Most 2013


Recent  Bottom  2013 2013
 Bottom  2012 2012

Fiscal  Line   Total  Net
 Line   Total  Net
Year  Net   Operating  Income
 Net   Operating  Income
Nebraska Hospital Organ City HQs End  Income   Revenues  Margin
 Income   Revenues  Margin

 mil $s   mil $s  %
 mil $s   mil $s  %
Non-Profit Hospitals

Children's Hospital & Med Ctr Omaha  Dec 13                  76               307 24.8%
              41             284 14.4%
Clarkson Regional Health Svcs Omaha  Jun 13                    7                 38 18.4%
              22               33 66.7%
Bryan Medical Center Lincoln May 13                 70               463 15.1%
              51             464 11.0%
Nebraska Medical Center Omaha  Jun 13                  25               803 3.1%
              37             802 4.6%
Nebraska Methodist Health Omaha  Dec 13                  18               668 2.7%
              33             655 5.0%

Total all 5

              196            2,279 8.6%
            184          2,238 8.2%

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

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

Details to come.