Ohio Non-Profit Hospital Organizations Net Income 10.4% of Revenues in 2013

From a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA), I found 13 Ohio 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.

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:

											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
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	%
Non-Profit Hospitals
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%
OhioHealth	Columbus	Jun 13	380	2,529	15.0%		233	2,372	9.8%		1,319	9,204	14.3%
Cleveland Clinic Health System	Cleveland	Dec 13	900	6,450	14.0%		614	6,187	9.9%		2,285	24,064	9.5%
Children'sHospitalMedCtrAkron	Akron	Dec 13	81	623	13.0%		47	580	8.1%		206	2,200	9.4%
Premier Health Partners	Dayton	Dec 13	141	1,764	8.0%		98	1,818	5.4%		384	7,204	5.3%
CincinnatChildren'sHospMedCtr	Cincinnati	Jun 13	153	1,932	7.9%		129	1,811	7.1%		399	7,040	5.7%
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.