Monday, April 14, 2014

Vermont Non-Profit Hospital Organization Net Income 9.4% of Revenues in 2013 and 9.2% in 2012

From a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA), I found 1 Vermont Non-Profit Hospital Organization with Net Assets above $400 mil.

Fletcher Allen Partners generated Total Bottom Line Net Income of an exceptional 9.4% of Total Operating Revenues in 2013 and also a superb 9.2% in 2012.

The only problem with these exceptional operating results of this Vermont Non-Profit Hospital Organization in both 2013 and 2012 was that instead of taking the high road and responsibly reducing their Patient Service Pricing, this Vermont Non-Profit Hospital Organization 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 Fletcher Allen Partners for both 2013 and 2012:

Most 2013


Recent  Bottom  2013 2013
 Bottom  2012 2012

Fiscal  Line   Total  Net
 Line   Total  Net
Year  Net   Operating  Income
 Net   Operating  Income
Vermont Hospital Organ City HQs End  Income   Revenues  Margin
 Income   Revenues  Margin

 mil $s   mil $s  %
 mil $s   mil $s  %
Non-Profit Hospital

Fletcher Allen Partners Burlington Sep 13               142            1,503 9.4%
            105          1,145 9.2%

There is a very positive aspect to these excessively high Bottom Line Profits of this Vermont Non-Profit Hospital Organization.  These incredibly high Profits are getting added to the Net Assets (Financial Strength) of this Vermont Hospital Organization.

Thus a key beneficiary of this should be Vermont 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 this Vermont Hospital Organization the financial flexibility to moderate its pricing for hospital and other health care procedures in its 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 this large Vermont 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.

And there's an added factor in Vermont's case which should drive down Health Insurance Premiums on the Health Insurance Exchange even more.  Vermont 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.