|mil $s||mil $s|
|Partners Healthcare System||Boston||MA||Jun 14||7,463||Sep 09||4,975||50%|
|Children's Medical Center & Hospital||Boston||MA||Jun 14||3,828||Sep 09||2,516||52%|
|CareGroup Healthcare System||Boston||MA||Jun 14||1,733||Sep 09||978||77%|
|Dana-Farber Cancer Institute||Boston||MA||Jun 14||1,306||Sep 09||836||56%|
|Boston Medical Center||Boston||MA||Jun 14||1,166||Sep 09||1,026||14%|
|UMass Memorial HealthCare||Worchester||MA||Jun 14||914||Sep 09||545||68%|
|Lahey Clinic Medical Center||Burlington||MA||Jun 14||727||Sep 09||357||104%|
|Baystate Medical Center||Springfield||MA||Jun 14||711||Sep 09||361||97%|
|SouthCoast Health System||New Medford||MA||Jun 14||696||Sep 09||485||44%|
|Cape Cod Healthcare||Hyannis||MA||Jun 14||526||Sep 09||288||83%|
|Covenant Health Systems||Lexington||MA||Jun 14||446||Dec 08||242||84%|
|Total all 11||19,516||12,609||55%|
As you can see from the above chart, the Total Net Assets (Financial Strength) of these 11 Massachusetts Non-Profit Hospital Organizations increased by a robust 55% to a massive $19.516 bil so far during the Obama Administration.
The salient story here is that in just the past 12 months, the Total Net Assets increase during the Obama Administration of these 11 Massachusetts Non-Profit Hospital Organizations grew substantially from 28% to 55%.
Very positively impacting this very robust increase in the Net Assets (Financial Strength) of these 11 Massachusetts 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 11 Massachusetts Non-Profit Hospital Organizations.
A remarkable thing is that these robust increases in Net Assets (Financial Strength) of these Non-Profit Hospital Organizations occurred when these Non-Profit Hospitals, particularly the Massachusetts 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 11 Massachusetts Hospitals, a key beneficiary of this has been and will continue to be Massachusetts citizens electing to buy health insurance on the Health Insurance Exchange. This very robust Net Asset growth gives these Massachusetts 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.
Also from a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA), I found 11 Massachusetts Non-Profit Hospital Organizations with Net Assets above $400 mil each and which have audited financial statements in each of the most recent 4 fiscal years.
These 11 Massachusetts Non-Profit Hospital Organizations generated Total Bottom Line Net Income of a modest 6.3% of Total Operating Revenues in 2013 and an even more modest 4.9% in 2012.
Ten of the 11 Massachusetts Non-Profit Hospital Organizations posted a Bottom Line Profit Margin of below 6.0% each in 2013.
It should be pointed out that these are modest Bottom Line Profits of these largest, financially strongest Massachusetts Hospital Organizations which even include very robust Investment Returns due to the hot stock market in both 2013 and in late 2012, and thus on an Operating Income (Loss) basis, these Profits are substantially lower in both 2013 and in 2012.
To illustrate this point, by far the largest of these Massachusetts Hospital Organizations is the very prestigious Partners HealthCare System, which had Total Investment Returns of $195 mil in 2013 included in Non-Operating Income, which was higher than its Total Operating Income of $158 mil also in 2013.
And to further illustrate this point, Boston-based Children's Medical Center posted Total Investment Returns of $324 mil in 2013 included in Non-Operating Income, which was more than triple the Total Operating Income of $84 mil also in 2013.
Partners HealthCare System's 2013 Bottom Line Net Income included a $254 mil economic gain from new affiliations.
Below are the Bottom Line Net Income and Total Operating Revenues for each of these 11 Massachusetts Non-Profit Hospital Organizations for both 2013 and 2012:
|Massachusetts Hospital Organ||City HQs||End||Income||Revenues||Margin||Income||Revenues||Margin|
|mil $s||mil $s||%||mil $s||mil $s||%|
|Children's Med Ctr&Hospital||Boston||Sep 13||382||1,790||21.3%||229||1,769||12.9%|
|Lahey Clinic Medical Center||Burlington||Sep 13||62||1,047||5.9%||55||1,036||5.3%|
|Partners Healthcare System||Boston||Sep 13||600||10,346||5.8%||352||8,981||3.9%|
|CareGroup Healthcare System||Boston||Sep 13||137||2,462||5.6%||144||2,390||6.0%|
|Cape Cod Healthcare||Hyannis||Sep 13||37||674||5.5%||53||680||7.8%|
|Dana-Farber Cancer Institute||Boston||Sep 13||56||1,034||5.4%||23||987||2.3%|
|Covenant Health Systems||Lexington||Dec 13||30||581||5.2%||27||585||4.6%|
|Baystate Medical Center||Springfield||Sep 13||71||1,716||4.1%||93||1,634||5.7%|
|UMass Memorial HealthCare||Worchester||Sep 13||75||2,186||3.4%||54||2,228||2.4%|
|Boston Medical Center||Boston||Sep 13||20||1,012||2.0%||9||975||0.9%|
|SouthCoast Health System||New Medford||Sep 13||12||834||1.4%||35||790||4.4%|
|Total all 11||1,482||23,682||6.3%||1,074||22,055||4.9%|
More than anything, Hospital Patient Charges drive US Health Care Costs. When you view a typical US Hospital bill for patient services, it is easy to understand why US Health Care Costs are so much higher than that in any other major country.
One reason US Hospital bills are so high is that many of the larger Non-Profit Hospitals Systems set their pricing for hospital procedures so that they make a lot of money and retain it tax free, further increasing their already massive treasure chest of Investments in Equity and Debt Securities, which also grow tax free.
Thus, US Hospitals are playing a key role in determining ultimately whether health insurance premiums are fairly priced on the health insurance exchanges.
Well, as you can see from the above very modest profit amounts along with my earlier discussion of them, Massachusetts clearly is one State whose large Non-Profit Hospital Organizations are not being greedy in generating high profits.
With Massachusetts Hospitals generating such modest profits, a key beneficiary will be Massachusetts citizens buying health insurance on the Health Insurance Exchange. Massachusetts Hospitals, for the most part, have not been nor will they be baking in excessive Hospital profits demands in their negotiations with health insurance companies on pricing for hospital procedures which ultimately determines what insurance premiums are set by health insurance companies on the Health Insurance Exchange.
Another factor which will help keep insurance premium prices reasonable in the Health Insurance Exchange is that Massachusetts has wisely elected to expand Medicaid. This will increase nearly all Massachusetts Hospital profits substantially and thus permit Massachusetts Hospitals to be even more reasonable in their negotiations with health insurance companies on pricing for hospital and other health care procedures which ultimately drives what health insurance premiums are set at by health insurers on the Health Insurance Exchange.