Thursday, October 16, 2014

Delaware Non-Profit Hospitals Net Assets Up 102% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 2 Non-Profit Hospital Organizations headquartered in the State of Delaware with Net Assets (i.e. Financial Strength or Total Assets minus Total Liabilities) at the most recent date of more than $400 mil each.  Below here are the Net Assets of these 2 at both the most recent reported date and also at the Fiscal Year End (FYE) closest to the beginning of the Obama Administration:

FYE Balance Net

Balance Sheet Assets

Most Recent
Sheet Net %

Recent Balance
Date Assets Change

Balance Sheet
Beginning Beginning During
City State Sheet Net
Obama Obama Obama
Hospital Organization HQs HQs Date Assets
Admin Admin Admin

mil $s

mil $s

Christiana Care Health Services Wilmington DE Mar 14        1,723
Jun 09           881 96%
BayHealth Medical Center Dover DE Jun 14           613
Jun 09           276 122%

Total of both


        1,157 102%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 2 Delaware Non-Profit Hospital Organizations increased by a spectacular 102% to $2.336 bil so far during the Obama Administration.  And it would be much higher if the huge Christiana would have already have its audited June 30, 2014 financial statements done and submitted to gosh, its been more than 3 and a half months.  If a public corporation did this, it stock price would flat out plummet.  But its not just Christiana.  A lot of other Non-Profit Hospitals are just as slow.  The US Government should require timely reporting by all Non-Profit Hospitals above a certain size and Hospitals should pay their financial and accounting employees much more money and their top executives much less.  Rampant income inequality exists at Non-Profit Hospitals just like it does all throughout American businesses.

Very positively impacting this very robust increase in the Net Assets (Financial Strength) of these 2 Delaware Hospital Organizations were actions taken by both the Obama Administration and the US Fed to strengthen the US Financial Foundation which was severely damaged from the financial meltdown in late 2008.

In addition, the Affordable Care Act (ACA) has also played a key role in this very impressive increase in Net Assets (Financial Strength) of these 2 Delaware Non-Profit Hospital Organizations.

A remarkable thing is that these very robust increases in Net Assets (Financial Strength) of these Non-Profit Hospital Organizations occurred when these Non-Profit Hospitals were also playing very instrumental roles in the substantial annual percentage growth reduction of Total US Health Care Costs which occurred in each of the most recent three years under the ACA.

With such impressive Net Asset percentage increases of these 2 Delaware Hospitals, a key beneficiary of this has been and will continue to be Delaware citizens electing to buy health insurance on the Health Insurance Exchange.  This strong Net Asset growth gives these Delaware Hospitals the financial flexibility to moderate their pricing for hospital 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.