North Carolina Non-Profit Hospital Organizations Net Income 10.0% of Revenues in 2013

From a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA), I found 12 North Carolina Non-Profit Hospital Organizations with Net Assets above $400 mil each and which had or will very shortly have audited financial statements in each of the most recent 4 years.

One of these 12 North Carolina Non-Profit Hospitals.....the huge Carolina's Health Care System.... 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 12 North Carolina Non-Profit Hospital Organizations generated Total Bottom Line Net Income of a superb 10.0% of Total Operating Revenues in 2013 and of a similar superb 9.0% in the most recent 4 years combined.

The main contributor to these outstanding operating results was the huge renown Duke University Health System which posted a Net Income Margin of 18.9% for the most recent 4 years combined and of 17.3% in 2013.

The only problem with these exceptional operating results was that instead of taking the high road and responsibly reducing their Patient Service Pricing, these North Carolina 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 12 North Carolina 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
North Carolina 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
Cone Health	Greensboro	Sep 13	263	1,140	23.1%		83	1,023	8.1%		435	3,901	11.2%
Duke University Health System	Durham	Jun 13	440	2,539	17.3%		173	2,478	7.0%		1,778	9,407	18.9%
CaroMont Health	Gastonia	Jun 13	66	484	13.6%		13	489	2.7%		238	1,885	12.6%
Univ North Carolina Hosps	Chapel Hill	Jun 13	152	1,212	12.5%		121	1,185	10.2%		619	4,399	14.1%
Mission Health System	Asheville	Sep 13	132	1,233	10.7%		81	1,054	7.7%		341	4,111	8.3%
Novant Health	Winston-Salem	Dec 13	273	3,593	7.6%		274	3,555	7.7%		710	13,616	5.2%
Vidant Health	Greenville	Sep 13	120	1,601	7.5%		136	1,551	8.8%		354	5,651	6.3%
New Hanover Regional Med Ctr	Wilmington	Sep 13	53	718	7.4%		41	667	6.1%		158	2,676	5.9%
Rex Healthcare	Raleigh	Jun 13	46	731	6.3%		50	707	7.1%		219	2,638	8.3%
FirstHealth of the Carolinas	Pinehurst	Sep 13	31	565	5.5%		28	524	5.3%		94	2,023	4.6%
Carolinas Health Care System	Charlotte	Dec 13	181	3,412	5.3%		375	4,194	8.9%		1,016	14,669	6.9%
Cape Fear Valley Health System	Fayetteville	Sep 13	32	657	4.9%		45	674	6.7%		118	2,558	4.6%
Total all 12			1,789	17,885	10.0%		1,420	18,101	7.8%		6,080	67,534	9.0%

There is a very positive aspect to these excessively high Bottom Line Profits in the most recent 4 years of these North Carolina Non-Profit Hospital Organizations.  These incredibly high Profits are getting added to the Net Assets (Financial Strength) of these North Carolina Hospital Organizations.

Thus a key beneficiary of this should be North Carolina 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 North Carolina 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 North Carolina 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.







Details to come.