I didn't include the excessively profitable University of Texas System Hospitals and Clinics below since I couldn't find their separate financial statements in EMMA.
These 13 Non-Profit Non-County District Texas Hospital Organizations generated Total Bottom Line Net Income in 2013 which was an amazingly high 11.7% of Total Operating Revenues, which was up quite a bit from the comparable 7.2% Income Margin in 2012. For the most recent 4 years combined, this Total Bottom Line Profit Margin was a still much too high 8.7%.
The two main drivers of this sky high 10.1% Total Profit Margin in 2013 were Houston-based The Methodist Health System at 26.1%, Fort Worth-based Cook Children's Health at 23.4% and Arlington-based Texas Health Resources at 20.0%.
Altogether 8 of these 13 Texas Non-Profit Hospital Organizations generated Bottom Line Net Income Margins of 11.9% or higher in 2013. All 8 of them had Bottom Line Profit Margins exceeding that of the 30 Dow Industrials combined. And all 8 of them had double-digit Percentage Bottom Line Net Income Margins for the most recent 4 years combined. Instead of taking the high road and responsibly reducing their Patient Service Pricing, these 8 Texas 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 Texas 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 | ||||
| City | Year | Net | Operating | Income | Net | Operating | Income | Net | Operating | Income | |||
| Texas Hospital Organization | 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 | |||||||||||||
| …..Non-County District Hospitals | |||||||||||||
| The Methodist Hospital System | Houston | Dec 13 | 684 | 2,616 | 26.1% | 387 | 2,331 | 16.6% | 1,527 | 9,103 | 16.8% | ||
| Cook Children's Health | Fort Worth | Sep 13 | 282 | 1,205 | 23.4% | 279 | 1,127 | 24.8% | 875 | 4,162 | 21.0% | ||
| Texas Health Resources | Arlington | Dec 13 | 768 | 3,846 | 20.0% | 483 | 3,725 | 13.0% | 1,845 | 13,964 | 13.2% | ||
| Children's Med Ctr Dallas | Dallas | Dec 13 | 215 | 1,151 | 18.7% | 146 | 1,052 | 13.9% | 594 | 4,099 | 14.5% | ||
| United Regional Health Care | Wichita Falls | Dec 13 | 52 | 293 | 17.7% | 40 | 279 | 14.3% | 167 | 1,135 | 14.7% | ||
| Methodist Health System | Dallas | Sep 13 | 177 | 1,086 | 16.3% | 159 | 969 | 16.4% | 465 | 3,776 | 12.3% | ||
| Texas Children's Hospital | Houston | Sep 13 | 303 | 2,340 | 12.9% | 216 | 2,044 | 10.6% | 764 | 7,678 | 10.0% | ||
| Baylor Health System | Dallas | Jun 13 | 489 | 4,124 | 11.9% | 220 | 3,846 | 5.7% | 1,659 | 15,260 | 10.9% | ||
| Memorial Hermann Healthcare | Houston | Jun 13 | 170 | 3,578 | 4.8% | 154 | 3,351 | 4.6% | 713 | 13,025 | 5.5% | ||
| Christus Health | Irving | Jun 13 | 160 | 3,701 | 4.3% | (41) | 3,596 | -1.1% | 393 | 14,377 | 2.7% | ||
| Baylor College of Medicine | Houston | Jun 13 | 41 | 1,365 | 3.0% | (150) | 1,272 | -11.8% | (207) | 5,063 | -4.1% | ||
| East Texas Medical Center | Tyler | Oct 13 | 21 | 971 | 2.2% | 12 | 942 | 1.3% | 95 | 3,715 | 2.6% | ||
| Scott & White Healthcare | Temple | Aug 13 | (58) | 2,062 | -2.8% | 16 | 2,047 | 0.8% | 91 | 7,828 | 1.2% | ||
| Total all 13 Non-County District Hospitals | 3,304 | 28,338 | 11.7% | 1,921 | 26,581 | 7.2% | 8,981 | 103,185 | 8.7% | ||||
There is a very positive aspect to these excessively high Bottom Line Profits of these Texas Non-Profit Hospital Organizations. These high Profits are getting added to the Net Assets (Financial Strength) of these Texas Hospital Organizations.
Thus a key beneficiary of this should be Texas 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 Texas 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 Texas 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.
