Virginia Hospital Center Arlington Health System posted First Closing numbers for December 2013 which I used below and I'll adjust them when the audited financial statements are published on EMMA.
These 8 Non-Profit Virginia Hospital Organizations generated Total Bottom Line Net Income in 2013 which was an off-the-charts 13.8% of Total Operating Revenues, which was up a bit from the comparable still off-the-charts 11.8% Income Margin in 2012. For the most recent 4 years combined, this Total Bottom Line Profit Margin was a still way too high 10.6%.
The two main drivers of this sky high 13.8% Total Profit Margin in 2013 were Arlington-based Virginia Hospital Center Arlington Health System at 26.8% and Falls Church-based Inova Health System at 20.4%. There is something way out of whack across the Potomac that the Feds are clearly not on top of. If you are trying to control US Health Care Costs, there is no way you can permit two large Non-Profit Hospital Organizations to post Bottom Line Net Income as a Percentage of Total Operating Revenues both north of 20.0% for each of the two most recent years, and particularly so for two Non-Profit Hospital Organizations so incredibly close to DC. I think this is a complete embarrassment. Where's Jeff Zients when you need him again to clean up some Health Care mess? Just sayin!
Altogether 6 of these 8 Virginia Non-Profit Hospital Organizations generated Bottom Line Net Income Margins of 10.0% or higher in 2013. All 6 of them had Bottom Line Profit Margins exceeding that of the 30 Dow Industrials combined. Instead of taking the high road and responsibly reducing their Patient Service Pricing, these 6 Virginia 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 8 Virginia 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|
|Virginia 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||%|
|Virginia Hospital Ctr Arlington||Arlington||Dec 13||103||385||26.8%||83||388||21.4%||270||1,472||18.3%|
|Inova Health System||Falls Church||Dec 13||518||2,539||20.4%||506||2,362||21.4%||1,689||9,448||17.9%|
|Augusta Health Care||Augusta County||Dec 13||39||264||14.8%||52||264||19.7%||159||1,046||15.2%|
|Sentara HealthCare||Norfolk||Dec 13||612||4,299||14.2%||431||4,068||10.6%||1,657||15,271||10.9%|
|VCU Health||Richmond||Jun 13||222||2,058||10.8%||134||1,795||7.5%||635||7,327||8.7%|
|Carilion Clinic||Roanoke||Sep 13||143||1,434||10.0%||71||1,324||5.4%||64||5,149||1.2%|
|Centra Health||Lynchburg||Dec 13||60||684||8.8%||48||667||7.2%||177||2,598||6.8%|
|Valley Health System||Winchester||Dec 13||19||743||2.6%||44||742||5.9%||158||2,864||5.5%|
|Total all 8||1,716||12,406||13.8%||1,369||11,610||11.8%||4,809||45,175||10.6%|
There is a very positive aspect to these excessively high Bottom Line Profits of these Virginia Non-Profit Hospital Organizations. These incredibly high Profits are getting added to the Net Assets (Financial Strength) of these Virginia Hospital Organizations.
Thus a key beneficiary of this should be Virginia 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 Virginia 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 Virginia 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.