Tuesday, October 14, 2014

Minnesota Non-Profit Hospitals Net Assets Up 185% Under Obama and the Affordable Care Act.....Al Franken Always Had It Right

From a review of the Electronic Municipal Market Access (EMMA), I found 9 Non-Profit Hospital Organizations headquartered in the State of Minnesota 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 9 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

Mayo Clinic Rochester MN Jun 14     8,136
Dec 08        2,326 250%
HealthPartners Bloomington MN Jun 14     2,317
Dec 08           503 361%
Allina Health System Minneapolis MN Jun 14     2,091
Dec 08           804 160%
Fairview Health Services Minneapolis MN Jun 14     1,651
Dec 08           732 126%
Essentia Health Minneapolis MN Jun 14        925
Jun 09           519 78%
Centracare Health System St Cloud MN Jun 14        809
Jun 09           381 112%
Children's Hospitals and Clinics Minneapolis MN Jun 14        708
Dec 08           370 91%
Park Nicollet Health Services St Louis Park MN Jun 14        624
Dec 08           299 109%
North Memorial Health Care Robbinsdale MN Jun 14        428
Dec 08           263 63%

Total all 9


        6,197 185%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 9 Minnesota Non-Profit Hospital Organizations increased by a spectacularly off-the-chart 185% to $17.689 bil so far during the Obama Administration.  That 185% increase in Non-Profit Hospital financial strength is the second highest % increase for all large and medium-sized US States.

The clear driver of this incredible Net Asset appreciation was Mayo Clinic, whose Net Assets grew by a massive $5.8 bil or by 250% so far during the Obama Administration.

Six of the 9 more than doubled their Net Assets so far during the Obama Administration.

The lowest percentage growth of the 9 was up a very strong 63%.

Very positively impacting this incredible increase in the Net Assets (Financial Strength) of these 9 Minnesota 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 exceptional increase in Net Assets (Financial Strength) of these 9 Minnesota 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, and especially the Minnesota 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 impressive Net Asset percentage increases of these 9 Minnesota Hospitals, a key beneficiary of this has been and will continue to be Minnesota citizens electing to buy health insurance on the Health Insurance Exchange.  This very strong Net Asset growth gives these Minnesota 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.

The prescient Minnesota US Senator Al Franken had this all figured out a very long time ago.