An amazingly high 4 of these 13 Ohio Non-Profit Hospital Organizations.....Nationwide Children's Hospital, Catholic Health Partners, Kettering Health Network and University Hospitals Health System..... still haven't published their December 2013 financial statements yet and thus I only included for 2013 below their 9 months ended September 30, 2013 operating data. When they publish their December 2013 financial statements, I'll then update the amounts included in the chart below.
These 13 Ohio Non-Profit Hospital Organizations generated Total Bottom Line Net Income of a superb 10.4% of Total Operating Revenues in 2013, which exceeded that of the 30 Dow Industrials combined.
The main contributor to these outstanding operating results in 2013 was the huge renown Cleveland Clinic which posted a Net Income Margin of a superb 14.0% in 2013. And there were 3 other Ohio Non-Profit Hospital Organizations which registered Bottom Line Net Income Margins in 2013 which were even higher than Cleveland Clinic's 14.0%.
The only problem with these exceptional operating results in 2013 was that instead of taking the high road and responsibly reducing their Patient Service Pricing, these Ohio 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 13 Ohio 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|
|Ohio 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||%|
|Nationwide Children's Hospital||Columbus||Dec 13||200||1,199||16.7%||209||1,489||14.0%||640||5,178||12.4%|
|ProMedica Health Care||Toledo||Dec 13||228||1,421||16.0%||282||1,405||20.1%||838||5,389||15.6%|
|Cleveland Clinic Health System||Cleveland||Dec 13||900||6,450||14.0%||614||6,187||9.9%||2,285||24,064||9.5%|
|Premier Health Partners||Dayton||Dec 13||141||1,764||8.0%||98||1,818||5.4%||384||7,204||5.3%|
|Catholic Health Partners||Cincinnati||Dec 13||221||2,873||7.7%||303||3,819||7.9%||738||13,674||5.4%|
|Kettering Health Network||Dayton||Dec 13||72||956||7.5%||46||1,228||3.7%||210||4,337||4.8%|
|Univ Hospitals Health System||Cleveland||Dec 13||110||1,729||6.4%||54||2,266||2.4%||308||8,068||3.8%|
|Summa Health System||Akron||Dec 13||52||1,397||3.7%||56||1,359||4.1%||198||5,314||3.7%|
|Christ Hospital Health Network||Cincinnati||Jun 13||17||762||2.2%||17||681||2.5%||21||2,632||0.8%|
|UC Health||Cincinnati||Jun 13||26||1,206||2.2%||164||1,155||14.2%||169||4,142||4.1%|
|Total all 13||2,581||24,841||10.4%||2,252||26,170||8.6%||7,715||98,446||7.8%|
There is a very positive aspect to these excessively high Bottom Line Profits of these Ohio Non-Profit Hospital Organizations. These incredibly high Profits are getting added to the Net Assets (Financial Strength) of these Ohio Hospital Organizations.
Thus a key beneficiary of this should be Ohio 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 Ohio 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 Ohio 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 Ohio's case which should drive down Health Insurance Premiums on the Health Insurance Exchange even more. Ohio 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.