Thursday, October 16, 2014

Hawaii Non-Profit Hospitals Net Assets Up 149% 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 Hawaii 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

Queens Health System Honololulu HI Jun 14        1,361
Jun 09           548 148%
Hawaii Pacific Health Honololulu HI Jun 14           571
Jun 09           228 150%

Total of both


           776 149%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 2 Hawaii Non-Profit Hospital Organizations increased by a phenomenal 149% to $1.932 bil so far during the Obama Administration.

Very positively impacting this very robust increase in the Net Assets (Financial Strength) of these 2 Hawaii 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 Hawaii 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 Hawaii Hospitals, a key beneficiary of this has been and will continue to be Hawaii citizens electing to buy health insurance on the Health Insurance Exchange.  This strong Net Asset growth gives these Hawaii 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.