Friday, October 17, 2014

Louisiana Non-Profit Hospitals Net Assets Up 87% Under Obama and the Affordable Care Act.....But With Its Severely Struggling Public Hospitals, Mary Landrieu is Right to Demand Medicaid Expansion

From a review of the Electronic Municipal Market Access (EMMA), I found 4 Non-Profit Hospital Organizations headquartered in the State of Louisiana 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 4 Louisiana Non-Profit Hospital Organizations 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




Most
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









Franciscan Missionaries Our Lady Health Baton Rouge LA Jun 14        1,407
Jun 09           830 70%
Willis-Knighton Medical Center Shreveport LA Sep 13           726
Sep 09           430 69%
Ochsner Health System Jefferson LA Jun 14           615
Dec 08           321 92%
LSU Health Care Services Division Baton Rouge LA Jun 13           453
Jun 09           132 243%









Total all 4


        3,201

        1,713 87%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 4 Louisiana Non-Profit Hospital Organizations increased by a very impressive 87% to $3.201 bil so far during the Obama Administration.

And all 4 of them are doing just great from a Financial Strength standpoint, with the lowest Net Asset growth of the 4 being a very robust 69%.

Very positively impacting this very robust increase in the Net Assets (Financial Strength) of these 4 Louisiana 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 impressive increase in Net Assets (Financial Strength) of these 4 Louisiana 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 very solid Net Asset percentage increases of these 4 Louisiana Hospitals, a key beneficiary of this has been and will continue to be Louisiana citizens electing to buy health insurance on the Health Insurance Exchange.  This very robust Net Asset growth gives these Louisiana 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. 

Which takes us to the Louisiana Governmental Public Hospitals, so many of which continue to lose tons of money.

From their financial statements in EMMA, below here are the 11 Louisiana Hospital Organizations which generated Operating Losses in their most recent fiscal year:





Most





Recent




Operating Annual


 Operating  Total Income Fiscal


 Income  Operating (Loss) Year

City HQs  (Loss)  Revenues  Margin  End


mils $s mils $s  % 
Louisiana Non-Profit Hospital Organizations










LSU Health Care Services Division Baton Rouge     (224.1)         521 -43.0% Jun 13
LSU Health Sciences Center New Orleans     (132.1)         362 -36.5% Jun 13
Schumpert Highland Hospital and Health* Shreveport       (70.0)         219 -32.0% Jun 13
LSU Health Sciences Center Shreveport     (114.4)         599 -19.1% Jun 13
St. Charles Parish Hosp District Luling         (5.2)           30 -17.3% Jul 12
Lafourche Parish Hosp District Galliano         (3.7)           27 -13.8% Jun 13
Coushatta Health* Coushatta         (0.9)           12 -7.5% Jun 13
Jefferson Parish Hosp District #2 East Metairie       (14.1)         366 -3.9% Dec 12
Patrick Hospital* Lake Charles         (3.6)         119 -3.0% Jun 13
Tangipahoa Parish Hosp District Hammond         (8.1)         277 -2.9% Jun 13
Ochsner Health Jefferson       (35.0)      1,842 -1.9% Dec 12






Total all 11
    (611.2)      4,374 -14.0%
 
 * Part of Christus Health

When you have these kinds of massive Operating Losses, the responsible thing to do is to deal with them and not ignore them.  So far, the State of Louisiana has decided to ignore them.

These massive losses are effectively being funded by Louisiana citizens and businesses.

The best and only way to substantially strengthen these struggling Louisiana Governmental Public Hospitals and relieve Louisiana citizens and businesses from funding these massive losses is for the State of Louisiana to fully expand Medicaid.

A key side benefit here to Louisiana citizens is that the resultant profit enhancements and thus Net Asset enhancements of these Louisiana Governmental Public Hospitals as well as all Louisiana Hospitals due to Medicaid expansion will give them 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.