Tuesday, October 14, 2014

Virginia Non-Profit Hospitals Net Assets Up 130% 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 Virginia with Net Assets (i.e. Financial Strength or Total Assets minus Total Liabilities) at the most recent date reported in 2014 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

Inova Health System Falls Church VA  Jun 14      4,390
Dec 08        1,885 133%
Sentara HealthCare Norfolk VA  Jun 14      3,912
Dec 08        1,489 163%
Virginia Commonwealth Univ Health Richmond VA  Jun 14      1,632
Jun 09           756 116%
Virginia Hospital Center Arlington Arlington VA  Jun 14         769
Dec 08           351 119%
Valley Health System Winchester VA  Jun 14         759
Dec 08           434 75%
Carilion Clinic Roanoke VA  Jun 14         728
Sep 09           357 104%
Centra Health Lynchburg VA  Jun 14         549
Dec 08           233 136%
Augusta Health Care Augusta County VA  Jun 14         448
Dec 08           229 96%

Total all 8


       5,734 130%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 8 Virginia Non-Profit Hospital Organizations increased by a phenomenal 130% to $13.187 bil so far during the Obama Administration.

An incredibly high 6 of these 8 Virginia Hospitals had their Net Asset growth more than double so far during the Obama Administration.

The lowest Net Asset growth over the Obama Administration of the 8 Virginia Hospitals was a very strong 75%.

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