Thursday, October 16, 2014

Washington State Non-Profit Hospitals Net Assets Up 96% 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 Washington with Net Assets (i.e. Financial Strength or Total Assets minus Total Liabilities) at the most recent date reported 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

Providence Health Renton WA Jun 14        8,121
Dec 08        3,911 108%
Seattle Children's Healthcare Seattle WA Jun 14        2,117
Sep 09        1,195 77%
MultiCare Health System Tacoma WA Jun 14        1,905
Dec 08           650 193%
PeaceHealth Vancouver WA Jun 14        1,779
Jun 09           897 98%
Univ Washington Med Center Seattle WA Jun 13           669
Jun 09           495 35%
Harborview Medical Center Seattle WA Jun 13           622
Jun 09           662 -6%
Overlake Hospital Association Bellevue WA Jun 14           435
Jun 09           199 119%
Virginia Mason Medical Center Seattle WA Jun 14           422
Dec 08           195 116%

Total all 8


       8,204 96%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 8 Washington Non-Profit Hospital Organizations increased by a spectacular 96% to $16.070 bil so far during the Obama Administration.

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