Wednesday, October 15, 2014

New Jersey Non-Profit Hospitals Net Assets Up 190% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found 8 Non-Profit Hospital Organizations headquartered in the State of New Jersey 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 8 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

AHS (Atlantic Health System) Hospital Morristown NJ  Jun 14      1,326
Dec 08           510 160%
Virtua Health Marlton NJ  Jun 14      1,233
Dec 08           566 118%
Meridian Hospitals Red Bank NJ  Jun 14         928
Dec 08           339 174%
Robert Wood Johnson University Hospital New Brunswick NJ  Jun 14         919
Dec 08           457 101%
Barnabas Health West Orange NJ  Jun 14         799
Dec 08          (290) 376%
Hackensack University Medical Center Hackensack NJ  Jun 14         671
Dec 08           297 126%
AtlantiCare Regional Medical Center Galloway NJ  Jun 14         516
Dec 08           262 97%
Cooper Health Obligated Group Camden NJ  Jun 14        458
Dec 08           218 110%

Total all 8


       2,359 190%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 8 New Jersey Non-Profit Hospital Organizations increased by a phenomenal 190% to $6.850 bil so far during the Obama Administration.  That 190% Net Asset growth is up substantially from the 162% growth only six months ago.  And this 190% Net Asset increase in Non-Profit Hospital financial strength is the highest % increase for all large and medium-sized US States.

To illustrate how broad-based this New Jersey Hospital Net Asset Growth was, 7 of the 8 doubled their Net Asset growth and the lowest percentage increase of the 8 was an exceptionally high 97%.

Very positively impacting this massive increase in the Net Assets (Financial Strength) of these 8 New Jersey Hospitals 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 huge increase in Net Assets (Financial Strength) of these 8 New Jersey 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 spectacular Net Asset percentage increases of these 8 New Jersey Hospitals, a key beneficiary of this has been and will continue to be New Jersey citizens electing to buy health insurance on the Health Insurance Exchange.  This exceptional Net Asset growth gives these New Jersey 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.