|mil $s||mil $s|
|Carolinas Health Care System||Charlotte||NC||Jun 14||4,232||Dec 08||2,340||81%|
|Duke University Health System||Durham||NC||Jun 14||3,013||Jun 09||1,392||116%|
|Novant Health||Winston-Salem||NC||Jun 14||2,645||Dec 08||1,557||70%|
|Cone Health||Greensboro||NC||Jun 14||1,502||Sep 09||894||68%|
|Mission Health System||Asheville||NC||Jun 14||1,406||Sep 09||882||59%|
|University North Carolina Hospitals||Chapel Hill||NC||Jun 14||1,280||Jun 09||911||41%|
|Vidant Health||Greenville||NC||Jun 14||1,032||Sep 09||587||76%|
|North Carolina Baptist Hospital||Winston-Salem||NC||Jun 14||1,009||Jun 09||715||41%|
|WakeMed Health||Raleigh||NC||Jun 14||910||Sep 09||719||27%|
|CaroMont Health||Gastonia||NC||Jun 14||716||Jun 09||386||85%|
|FirstHealth of the Carolinas||Pinehurst||NC||Jun 14||674||Sep 09||458||47%|
|Wake Forest Univ Health Sciences||Winston-Salem||NC||Jun 14||647||Jun 09||510||27%|
|New Hanover Regional Medical Center||Wilmington||NC||Jun 14||605||Sep 09||450||34%|
|Rex Healthcare||Raleigh||NC||Jun 14||480||Jun 09||297||62%|
|Cape Fear Valley Health System||Fayetteville||NC||Jun 14||445||Sep 09||315||41%|
|Total all 15||20,596||12,413||66%|
As you can see from the above chart, the Total Net Assets (Financial Strength) of these 15 North Carolina Non-Profit Hospital Organizations increased by an impressive 66% to a massive $20.596 bil so far during the Obama Administration.
Very positively impacting this impressive increase in the Net Assets (Financial Strength) of these 15 North Carolina 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 very robust increase in Net Assets (Financial Strength) of these 15 North Carolina 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 North Carolina 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 15 North Carolina Hospitals, a key beneficiary of this has been and will continue to be North Carolina citizens electing to buy health insurance on the Health Insurance Exchange. This strong Net Asset growth gives these North Carolina 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.
North Carolina Struggling Hospitals
North Carolina has some excellent Non-Profit Hospital Organizations connected with Universities. And they are also doing very well on the Operating Income front, as you can see in the below chart:
|mils $s||mils $s||%|
|North Carolina University Non-Profit Hospital Organizations|
|Univ North Carolina Hosps||Chapel Hill||113.9||1,212||9.4%||Jun 13|
|Duke University Health||Durham||184.1||2,539||7.3%||Jun 13|
|Vidant Health||Greenville||94.3||1,601||5.9%||Sep 13|
|Total all 3||392.3||5,352.0||7.3%|
However, there are many North Carolina Hospital Organizations which are really suffering financially.
From EMMA, I found 29 North Carolina Non-Profit Hospital Organizations with Total Operating Revenues in excess of $10 mil each in their most recent fiscal year. Of those 29, a very high 17 of them, or 59% of them, generated Operating Income as a Percentage of Total Operating Revenues of less than 2.0% in their most recent fiscal year. These 17 Hospital Organizations generated Total Operating Losses of $115 mil in their most recent fiscal year, which was a negative 1.7% of their Total Operating Revenues, as you can see in the below chart:
|mils $s||mils $s||%|
|North Carolina Non-Profit Hospital Organizations|
|Chatham Memorial Hospital||Elkin||(6.3)||82||-7.7%||Sep 13|
|Cone Health||Greensboro||(44.1)||1,140||-3.9%||Sep 13|
|Nash Health Care||Rocky Mount||(7.5)||218||-3.4%||Dec 13|
|Wake Forest Baptist Hosp||Winston-Salem||(56.6)||1,895||-3.0%||Jun 13|
|Stanley Health Services||Albemarle||(3.1)||130||-2.4%||Sep 13|
|High Point Regional Health||High Point||(6.2)||275||-2.3%||Sep 12|
|Halifax Regional Med Ctr||Roanoke Rapids||(1.3)||90||-1.4%||Sep 13|
|WakeMed Health||Raleigh||(14.4)||1,023||-1.4%||Sep 13|
|Columbus Regional Healthcare||Whiteville||(0.6)||80||-0.8%||Sep 13|
|Scotland Healthcare||Laurinburg||(0.1)||125||-0.1%||Sep 13|
|Wayne Health||Goldsboro||0.7||216||0.3%||Sep 13|
|Southeastern Regnl Med Ctr||Lumberton||2.5||288||0.9%||Sep 13|
|Catawba Valley Medical Center||Hickory||2.1||203||1.0%||Jun 13|
|Harnett Health||Dunn||1.1||87||1.3%||Sep 12|
|Wilson Medical Center||Wilson||1.8||137||1.3%||Sep 12|
|Cape Fear Valley Health||Fayetteville||12.3||657||1.9%||Sep 13|
|ARMC Health Care||Burlington||4.8||251||1.9%||Dec 12|
|Total all 17||(114.9)||6,897||-1.7%|
Of these 29 North Carolina Hospital Organizations, 10 of them posted Operating Losses in the most recent year.
The best and only way to substantially strengthen these struggling North Carolina Hospitals is for the State of North Carolina to fully expand Medicaid.
A key side benefit to North Carolina citizens of North Carolina Medicaid expansion is that the resultant profit enhancements and thus Net Asset enhancements to all of North Carolina's Hospitals would 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.
Also from a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA), I found 12 North Carolina Non-Profit Hospital Organizations with Net Assets above $400 mil each and which had or will very shortly have audited financial statements in each of the most recent 4 years.
One of these 12 North Carolina Non-Profit Hospitals.....the huge Carolina's Health Care System.... hadn't published its December 2013 financial statements when I did this study and thus I only included for 2013 below its 9 months ended September 30, 2013 operating data.
These 12 North Carolina Non-Profit Hospital Organizations generated Total Bottom Line Net Income of a superb 10.0% of Total Operating Revenues in 2013 and of a similar superb 9.0% in the most recent 4 years combined.
The main contributor to these outstanding operating results was the huge renown Duke University Health System which posted a Net Income Margin of 18.9% for the most recent 4 years combined and of 17.3% in 2013.
The only problem with these exceptional operating results was that instead of taking the high road and responsibly reducing their Patient Service Pricing, these North Carolina Non-Profit Hospital Organizations elected to retain these excessively high Bottom Line Profits, which also added to both their Net Assets and treasure chest of Investments in Stocks and Bonds.
Below are the Bottom Line Net Income and Total Operating Revenues for each of these 12 North Carolina Non-Profit Hospital Organizations for 2013, for 2012 and for the most recent 4 years combined:
|Most||2013||2012||2010-13||4 Year||4 Year|
|North Carolina Hospital Organ||City HQs||End||Income||Revenues||Margin||Income||Revenues||Margin||Income||Revenues||Margin|
|mil $s||mil $s||%||mil $s||mil $s||%||mil $s||mil $s||%|
|Cone Health||Greensboro||Sep 13||263||1,140||23.1%||83||1,023||8.1%||435||3,901||11.2%|
|Duke University Health System||Durham||Jun 13||440||2,539||17.3%||173||2,478||7.0%||1,778||9,407||18.9%|
|CaroMont Health||Gastonia||Jun 13||66||484||13.6%||13||489||2.7%||238||1,885||12.6%|
|Univ North Carolina Hosps||Chapel Hill||Jun 13||152||1,212||12.5%||121||1,185||10.2%||619||4,399||14.1%|
|Mission Health System||Asheville||Sep 13||132||1,233||10.7%||81||1,054||7.7%||341||4,111||8.3%|
|Novant Health||Winston-Salem||Dec 13||273||3,593||7.6%||274||3,555||7.7%||710||13,616||5.2%|
|Vidant Health||Greenville||Sep 13||120||1,601||7.5%||136||1,551||8.8%||354||5,651||6.3%|
|New Hanover Regional Med Ctr||Wilmington||Sep 13||53||718||7.4%||41||667||6.1%||158||2,676||5.9%|
|Rex Healthcare||Raleigh||Jun 13||46||731||6.3%||50||707||7.1%||219||2,638||8.3%|
|FirstHealth of the Carolinas||Pinehurst||Sep 13||31||565||5.5%||28||524||5.3%||94||2,023||4.6%|
|Carolinas Health Care System||Charlotte||Dec 13||181||3,412||5.3%||375||4,194||8.9%||1,016||14,669||6.9%|
|Cape Fear Valley Health System||Fayetteville||Sep 13||32||657||4.9%||45||674||6.7%||118||2,558||4.6%|
|Total all 12||1,789||17,885||10.0%||1,420||18,101||7.8%||6,080||67,534||9.0%|
There is a very positive aspect to these excessively high Bottom Line Profits in the most recent 4 years of these North Carolina Non-Profit Hospital Organizations. These incredibly high Profits are getting added to the Net Assets (Financial Strength) of these North Carolina Hospital Organizations.
Thus a key beneficiary of this should be North Carolina citizens electing to buy health insurance on the Health Insurance Exchange. This exceptional Net Asset growth driven by these exceedingly high Bottom Line Profits gives these North Carolina Hospital Organizations the financial flexibility to moderate their pricing for hospital and other health care 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.
And armed with audited financial data concerning the excessively high profits earned by these large North Carolina Non-Profit Hospital Organizations in the past 4 years, Health Insurance Companies should be able to do a much better job in representing their policy holders, including those getting Health Insurance on the Health Insurance Exchange.