These 2 Utah Non-Profit Hospital Organizations generated Total Bottom Line Net Income of a spectacularly off-the-charts 14.0% of Total Operating Revenues in 2013, 12.5% in 2012 and 12.0% for the most recent 4 years combined (2010-2013)
These spectacular Net Income Margin Percentages were substantially higher that of the 30 Dow Industrials combined.
These spectacular operating results were driven by IHC Health Services (IHC).
The only problem with these exceptional operating results of the IHC Non-Profit Hospital Organization in both 2013 and for all 4 years combined was that instead of taking the high road and responsibly reducing its Patient Service Pricing, IHC elected to retain these excessively high Bottom Line Profits, which also added to both its Net Assets and its treasure chest of Investments in Stocks and Bonds.
Below are the Bottom Line Net Income and Total Operating Revenues for both of these Utah 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|
|Utah 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||%|
|IHC Health Services||Salt Lake City||Dec 13||712||4,252||16.7%||589||4,056||14.5%||2,170||15,751||13.8%|
|University Utah Hospitals & Clinics||Salt Lake City||Jun 13||43||1,141||3.8%||45||1,007||4.5%||188||3,939||4.8%|
|Total of both||755||5,393||14.0%||634||5,063||12.5%||2,358||19,690||12.0%|
There is a very positive aspect to these excessively high Bottom Line Profits of the IHC Non-Profit Hospital Organization. These incredibly high Profits are getting added to the Net Assets (Financial Strength) of IHC.
Thus a key beneficiary of this should be Utah 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 IHC 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 the IHC Non-Profit Hospital Organization, 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.