EMMA also had the audited financial statements of the large Catholic Health East, which was merged into Trinity Health in 2013 and thus isn't included with the 14. Instead, I have included it at the bottom of the below chart.
In addition, EMMA also had the audited financial statements of the huge UPMC, which has very substantial Health Insurance Revenues totaling $4.3 bil in the most recent year. Since UPMC's revenue mix is so much different from the other 14 Pennsylvania Non-Profit Hospital Organizations, I also have included it at the bottom of the below chart.
These 14 Pennsylvania Non-Profit Hospital Organizations generated Total Bottom Line Net Income of a very strong 8.7% of Total Operating Revenues in 2013. For the most recent 4 years combined (2010-2013), their Total Bottom Line Net Income Margin was a very solid 8.1%.
Remarkably, 6 of these 14 Pennsylvania Non-Profit Hospital Organizations posted Bottom Line Net Income Margins of 10.0% or above in 2013....and 10 of the 14 of 8.5% or higher in 2013.
The only problem with these exceptional operating results of many of these Pennsylvania Non-Profit Hospital Organizations in both 2013 and for all 4 years combined was that instead of taking the high road and responsibly reducing their Patient Service Pricing, most of these Pennsylvania 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 14 Pennsylvania Non-Profit Hospital Organizations as well as for Catholic Health East and for UPMC for both 2013 and for the most recent 4 years combined:
|Most||2013||2010-13||4 Year||4 Year|
|Pennsylvania Hospital Organization||City HQs||End||Income||Revenues||Margin||Income||Revenues||Margin|
|mil $s||mil $s||%||mil $s||mil $s||%|
|Children's Hospital||Philadelphia||Jun 13||290||2,075||14.0%||758||7,412||10.2%|
|Susquehanna Health||Williamsport||Jun 13||60||472||12.7%||133||1,586||8.4%|
|Reading Hospital||West Reading||Jun 13||110||913||12.0%||250||3,412||7.3%|
|Lancaster General Health||Lancaster||Jun 13||101||920||11.0%||309||3,721||8.3%|
|Guthrie Health||Sayre||Jun 13||61||576||10.6%||250||2,194||11.4%|
|Jefferson Health System||Radnor||Jun 13||304||3,047||10.0%||929||11,617||8.0%|
|WellSpan Health||York||Jun 13||123||1,237||9.9%||289||4,542||6.4%|
|Pinnacle Health System||Harrisburg||Jun 13||77||831||9.3%||191||2,748||7.0%|
|Geisinger Health System||Danville||Jun 13||302||3,355||9.0%||1,098||11,255||9.8%|
|University Penn Health||Philadelphia||Jun 13||296||3,501||8.5%||1,232||13,121||9.4%|
|Abington Health||Abington||Jun 13||36||784||4.6%||106||3,046||3.5%|
|Lehigh Valley Health||Allentown||Jun 13||60||1,562||3.8%||353||5,812||6.1%|
|St Luke's University Health||Bethlehem||Jun 13||42||1,122||3.7%||158||3,727||4.2%|
|Albert Einstein Healthcare||Philadelphia||Jun 13||1||1,057||0.1%||76||3,766||2.0%|
|Total all 14 Non-Profit Hospital Organizations||1,863||21,452||8.7%||7,523||92,899||8.1%|
|Catholic Health East||Newtown Square||Dec 13||194||3,269||5.9%||1,391||14,940||9.3%|
There is a very positive aspect to these excessively high Bottom Line Profits of many of these Pennsylvania Non-Profit Hospital Organizations. These incredibly high Profits are getting added to the Net Assets (Financial Strength) of these Pennsylvania Hospital Organizations.
Thus a key beneficiary of this should be Pennsylvania 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 Pennsylvania 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 many of these large Pennsylvania 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.