- Obscenely High Hospital Operating Profits
- Unfairly High Insurance Premiums
- Refusal to Expand Medicaid
From a review of the Electronic Municipal Market Access (EMMA), I found 12 Non-Profit Hospital Organizations headquartered in the State of Wisconsin 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 12 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 | ||||||
| Most | 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 | |||||||
| Froedtert Health | Milwaukee | WI | Jun 14 | 1,551 | Jun 09 | 824 | 88% | |
| Medical College Wisconsin | Milwaukee | WI | Mar 14 | 1,368 | Jun 09 | 808 | 69% | |
| Ministry Health Care | Milwaukee | WI | Mar 14 | 1,197 | Sep 09 | 730 | 64% | |
| Children's Hospital and Health System Wisconsin | Milwaukee | WI | Jun 14 | 1,170 | Dec 08 | 460 | 154% | |
| Aurora Health Care | Milwaukee | WI | Jun 14 | 1,607 | Dec 08 | 546 | 194% | |
| Wheaton Franciscan Health | Glendale | WI | Jun 14 | 1,065 | Jun 09 | 704 | 51% | |
| University Wisconsin Hospitals & Clinics | Madison | WI | Jun 14 | 992 | Jun 09 | 514 | 93% | |
| Marshfield Clinic Health System | Marshfield | WI | Jun 14 | 875 | Sep 09 | 554 | 58% | |
| Gundersen Lutheran Health | La Crosse | WI | Jun 14 | 822 | Dec 08 | 429 | 92% | |
| ProHealth Care | Waukesha | WI | Jun 14 | 715 | Sep 09 | 423 | 69% | |
| ThedaCare | Appleton | WI | Jun 14 | 697 | Dec 08 | 289 | 141% | |
| Aspirus Obligated Group | Wausau | WI | Mar 14 | 606 | Jun 09 | 211 | 187% | |
| Total all 12 | 12,665 | 6,492 | 95% |
As you can see from the above chart, the Total Net Assets (Financial Strength) of these 12 Wisconsin Non-Profit Hospital Organizations increased by a spectacular 95% to $12.665 bil so far during the Obama Administration.
The lowest Net Asset growth of the 12 was a very respectable 51%.
Very positively impacting this major increase in the Net Assets (Financial Strength) of these 12 Wisconsin 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 12 Wisconsin 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 12 Wisconsin Hospitals, a key beneficiary of this has been and will continue to be Wisconsin citizens electing to buy health insurance on the Federal Health Insurance Exchange. This exceptional Net Asset growth gives these Wisconsin 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.
Wisconsin Blow-out Individual Hospital Operating Profits
The State of Wisconsin is being very transparent with its citizens by having available for review annually at its State Health Dept website very detailed financial information on each of its 129 acute care Hospitals.
How have these 129 Hospitals done on the Operating Earnings front?
Fantastically, with Total Operating Income as a Percentage of Total Operating Revenues of 8.2% in the most recent year reported, which is the highest of any US State.
The chart below breaks down individual Wisconsin Hospitals by Operating Profit Margins.
At the top, there were an incredibly high 39 Wisconsin Hospitals generating Operating Income Margins of more than 10.0%. These 39 posted a Total Operating Margin of 15.5%, which was more than 50% higher than the After-tax Operating Income of the 30 prestigious Dow Industrial companies combined. The CEOs and CFOs of these 30 Dow Industrial companies must be shaking their heads at how the 129 Wisconsin Hospitals combined, predominantly Non-Profit ones, can generate such incredibly high Operating Income Profit Margins. It gives a clue as to why the country's health care costs are so high as compared with all other major countries. So many Non-Profit Hospitals generate these incredibly high profits year after year, and retain them, increasing their huge treasure chest of investments in debt and equity securities, which have advanced dramatically during the Obama Administration.
There were another 35 individual Wisconsin Hospitals generating a superb Operating Margin of 5.0% to 10.0%.
There were 33 individual Wisconsin Hospitals posting a more modest Operating Margin of 0.0% to 5.0%.
And there were 22 individual Wisconsin Hospitals registering Operating Losses in the most recent year.....including 4 in Milwaukee.
When you ponder the fact that 39 of these Wisconsin Hospitals are generating double-digit Operating Income Margins and that 74 of them, or 57% of them, are generating Operating Income Margins of 5.0% and above, what this clearly says is these Wisconsin Hospitals are ripping off Wisconsin patients by generating obscene profits, instead of responsibly lowering their Patient Charges.
Below here are these 129 Wisconsin Hospitals:
| Total | Operating | ||||
| Operating | Total | Income | |||
| Income | Operating | (Loss) | |||
| Hospital Name | City | (Loss) | Revenues | Margin | |
| 000s | 000s | % | |||
| Pure Golden Badger Hospitals | |||||
| Midwest Orthopedic Specialty Hospital | Franklin | 33,323 | 71,276 | 46.8% | |
| Orthopaedic Hospital of Wisconsin | Glendale | 22,147 | 56,796 | 39.0% | |
| Oakleaf Surgical Hospital | Eau Claire | 12,201 | 39,242 | 31.1% | |
| Aurora Medical Center in Kenosha | Kenosha | 46,939 | 151,660 | 31.0% | |
| Ministry Sacred Heart Hospital | Tomahawk | 4,284 | 17,982 | 23.8% | |
| Aurora Sheboygan Meml Medical Ctr | Sheboygan | 31,493 | 136,087 | 23.1% | |
| Aurora BayCare Med Center Green Bay | Green Bay | 64,210 | 278,839 | 23.0% | |
| St. Mary's Hospital of Superior | Superior | 9,958 | 43,795 | 22.7% | |
| River Falls Area Hospital | River Falls | 9,650 | 45,511 | 21.2% | |
| Aurora West Allis Medical Center | West Allis | 50,583 | 242,849 | 20.8% | |
| Gundersen Health System | La Crosse | 79,139 | 390,674 | 20.3% | |
| New London Family Medical Center | New London | 5,984 | 30,283 | 19.8% | |
| Waupun Memorial Hospital | Waupun | 7,573 | 40,249 | 18.8% | |
| Aurora Medical Center in Aurora | Oshkosh | 16,064 | 98,742 | 16.3% | |
| Aurora Medical Ctr Manitowoc County | Two Rivers | 9,514 | 59,368 | 16.0% | |
| Riverside Medical Center | Waupaca | 5,621 | 35,123 | 16.0% | |
| Memorial Medical Center | Ashland | 8,584 | 57,667 | 14.9% | |
| Aurora Lakeland Medical Center | Elkhorn | 11,248 | 77,712 | 14.5% | |
| Wheaton Franciscan-Elmbrook Campus | Brookfield | 18,772 | 136,271 | 13.8% | |
| Aurora Memorial Hospital of Burlington | Burlington | 10,023 | 73,790 | 13.6% | |
| Wheaton Franciscan-Franklin | Franklin | 7,830 | 57,702 | 13.6% | |
| St. Elizabeth Hospital | Appleton | 22,947 | 173,404 | 13.2% | |
| Mayo Clinic Health-Red Cedar | Menomonee | 11,401 | 91,033 | 12.5% | |
| Theda Clark Medical Center | Neenah | 21,970 | 177,599 | 12.4% | |
| Baldwin Area Medical Center | Baldwin | 3,923 | 31,870 | 12.3% | |
| Rusk County Meml Hosp&Nursing Home | Ladysmith | 2,311 | 19,122 | 12.1% | |
| Spooner Health System | Spooner | 2,058 | 17,529 | 11.7% | |
| Waukesha Memorial Hospital | Waukesha | 50,262 | 428,615 | 11.7% | |
| Ministry Health's Howard Young Med Ctr | Woodruff | 7,092 | 60,478 | 11.7% | |
| Cumberland Memorial Hospital | Cumberland | 2,212 | 18,932 | 11.7% | |
| Mayo Clinic Health in Eau Claire | Eau Claire | 30,484 | 262,077 | 11.6% | |
| Sacred Heart Hospital | Eau Claire | 24,256 | 211,589 | 11.5% | |
| Langlade Hospital-An Aspirus Partner | Antigo | 8,521 | 74,486 | 11.4% | |
| Ministry Saint Joseph's Hospital | Marshfield | 39,869 | 352,778 | 11.3% | |
| Prairie du Chien Memorial Hospital | Prairie du Chien | 3,732 | 33,898 | 11.0% | |
| Mayo Clinic Health-Franciscan Health | La Crosse | 23,351 | 212,991 | 11.0% | |
| Aurora Medical Center in Hartford | Hartford | 5,704 | 53,184 | 10.7% | |
| Aurora St Luke's Medical Center | Milwaukee | 108,772 | 1,026,071 | 10.6% | |
| Grant Regional Health Center | Lancaster | 2,070 | 20,426 | 10.1% | |
| Total all 39 Pure Golden Hospitals | 836,075 | 5,407,700 | 15.5% | ||
| Robust Profit Badger Hospitals | |||||
| Tomah Memorial Hospital | Tomah | 3,585 | 36,099 | 9.9% | |
| Aurora Medical Center in Grafton | Grafton | 13,977 | 143,280 | 9.8% | |
| Memorial Health Center-Aspirus Partner | Medford | 4,860 | 50,674 | 9.6% | |
| Flambeau Hospital | Park Falls | 1,880 | 19,918 | 9.4% | |
| Community Memorial | Menomonee Falls | 16,325 | 173,881 | 9.4% | |
| Aspirus Wausau Hospital | Wausau | 32,683 | 351,596 | 9.3% | |
| United Hospital System | Kenosha | 24,713 | 284,058 | 8.7% | |
| St. Joseph's Hospital | Chippewa Falls | 5,984 | 68,825 | 8.7% | |
| UW Hospitals & Clinics | Madison | 101,469 | 1,200,929 | 8.4% | |
| Ministry Saint Michael's Hospital | Stevens Point | 14,234 | 177,417 | 8.0% | |
| Columbus Community Hospital | Columbus | 2,336 | 29,334 | 8.0% | |
| Vernon Memorial Healthcare | Viroqua | 5,032 | 63,669 | 7.9% | |
| Appleton Medical Center | Appleton | 17,508 | 223,622 | 7.8% | |
| Black River Memorial Hospital | Black River Falls | 3,045 | 39,694 | 7.7% | |
| Children's Hospital of Wisconsin | Milwaukee | 40,556 | 536,754 | 7.6% | |
| Froedtert Memorial Lutheran Hospital | Milwaukee | 72,075 | 959,768 | 7.5% | |
| Mayo Clinic Health-Oakridge in Osseo | Osseo | 1,424 | 19,340 | 7.4% | |
| Hayward Area Memorial Hospital | Hayward | 2,257 | 32,937 | 6.9% | |
| Hudson Hospital & Clinics | Hudson | 3,515 | 51,791 | 6.8% | |
| Osceola Medical Center | Osceola | 2,044 | 30,382 | 6.7% | |
| St. Mary's Hospital Medical Center | Madison | 26,926 | 405,600 | 6.6% | |
| Lakeview Medical Center | Rice Lake | 4,289 | 64,719 | 6.6% | |
| Upland Hills Health | Dodgeville | 2,497 | 39,182 | 6.4% | |
| Gundersen Tri-County Hospital | Whitehall | 746 | 11,829 | 6.3% | |
| Aurora Medical Center in Summit | Summit | 6,062 | 97,193 | 6.2% | |
| Ministry Door County Medical Center | Sturgeon Bay | 4,252 | 69,392 | 6.1% | |
| Divine Savior Healthcare | Portage | 4,148 | 71,186 | 5.8% | |
| Riverview Hospital Association | Wisconsin Rapids | 4,997 | 86,397 | 5.8% | |
| The Richland Hospital | Richland Center | 1,974 | 35,222 | 5.6% | |
| St. Mary's Hospital Medical Center | Green Bay | 6,360 | 114,967 | 5.5% | |
| Burnett Medical Center | Grantsburg | 920 | 17,001 | 5.4% | |
| Wheaton Franciscan-All Saints | Racine | 19,542 | 366,452 | 5.3% | |
| Mayo Clinic Health-Northland in Barron | Barron | 2,904 | 55,621 | 5.2% | |
| St. Clare Hospital and Health Services | Baraboo | 3,052 | 59,566 | 5.1% | |
| Sauk Prairie Memorial Hospital | Prairie du Sac | 3,074 | 61,588 | 5.0% | |
| Total all 35 Robust Profit Badger Hospitals | 461,245 | 6,049,883 | 7.6% | ||
| Modest Profit Badger Hospitals | |||||
| Westfields Hospital | New Richmond | 1,604 | 32,414 | 4.9% | |
| Calumet Medical Center | Chilton | 1,055 | 21,661 | 4.9% | |
| Gundersen St. Joseph's Hospital&Clinics | Hillsboro | 813 | 16,906 | 4.8% | |
| St. Vincent Hospital | Green Bay | 11,434 | 254,116 | 4.5% | |
| Meriter Hospital | Madison | 18,802 | 432,096 | 4.4% | |
| Mayo Clinic Health-Chippewa in Bloomer | Bloomer | 1,542 | 35,980 | 4.3% | |
| Stoughton Hospital Association | Stoughton | 1,519 | 37,868 | 4.0% | |
| Wild Rose Community Meml Hospital | Wild Rose | 533 | 13,632 | 3.9% | |
| Mercy Hospital and Trauma Center | Janesville | 15,195 | 392,395 | 3.9% | |
| Mercy Walworth Hospital&Medical Center | Lake Geneva | 2,293 | 59,804 | 3.8% | |
| Columbia St Mary's-Ozaukee Campus | Mequon | 6,185 | 163,450 | 3.8% | |
| Ministry Saint Clare's Hospital | Weston | 3,698 | 100,489 | 3.7% | |
| St. Croix Regional Medical Center | St. Croix Falls | 2,250 | 62,366 | 3.6% | |
| Monroe Clinic | Monroe | 5,839 | 163,373 | 3.6% | |
| Ministry Our Lady of Victory Hospital | Stanley | 741 | 21,104 | 3.5% | |
| Beaver Dam Community Hospitals | Beaver Dam | 2,792 | 80,146 | 3.5% | |
| Agnesian HealthCare/St. Agnes Hospital | Fond du Lac | 9,989 | 293,981 | 3.4% | |
| Bellin Hospital | Green Bay | 11,843 | 350,272 | 3.4% | |
| Reedsburg Area Medical Center | Reedsburg | 1,511 | 44,962 | 3.4% | |
| Moundview Memorial Hospital&Clinics | Friendship | 489 | 14,982 | 3.3% | |
| St. Joseph's Community Hospital | West Bend | 2,749 | 84,276 | 3.3% | |
| Beloit Health System | Beloit | 5,269 | 190,977 | 2.8% | |
| Mercy Medical Center | Oshkosh | 3,005 | 110,332 | 2.7% | |
| Oconomowoc Memorial Hospital | Oconomowoc | 2,448 | 92,638 | 2.6% | |
| Mile Bluff Medical Center | Mauston | 1,224 | 53,307 | 2.3% | |
| Midwest Spine Orthopedic&Heart Hosp | Wauwatosa | 1,040 | 46,790 | 2.2% | |
| Shawano Medical Center | Shawano | 680 | 35,973 | 1.9% | |
| Memorial Hospital of Lafayette Co. | Darlington | 232 | 12,713 | 1.8% | |
| Bay Area Medical Center | Marinette | 1,589 | 113,061 | 1.4% | |
| UW Health Partners Reg Med Ctr | Watertown | 1,196 | 96,095 | 1.2% | |
| Ministry Good Samaritan Health Cntr | Merrill | 208 | 24,747 | 0.8% | |
| Amery Regional Medical Center | Amery | 111 | 50,874 | 0.2% | |
| Holy Family Memorial | Manitowoc | 10 | 127,350 | 0.0% | |
| Total all 33 Modest Profit Badger Hospitals | 119,888 | 3,631,130 | 3.3% | ||
| In-The-Red Badger Hospitals | |||||
| Wheaton Franciscan-St. Joseph | Milwaukee | (21) | 275,100 | 0.0% | |
| Community Memorial Hospital | Oconto Falls | (102) | 34,860 | -0.3% | |
| Wheaton Franciscan-St. Francis | Milwaukee | (483) | 155,569 | -0.3% | |
| Ripon Medical Center | Ripon | (84) | 22,543 | -0.4% | |
| Berlin Memorial Hospital | Berlin | (317) | 66,892 | -0.5% | |
| Ministry Eagle River Memorial Hospital | Eagle River | (81) | 14,528 | -0.6% | |
| Columbia St. Mary's Hospital | Milwaukee | (4,765) | 442,902 | -1.1% | |
| Ministry Saint Mary's Hospital | Rhinelander | (1,281) | 115,894 | -1.1% | |
| Fort HealthCare | Fort Atkinson | (1,994) | 122,645 | -1.6% | |
| Boscobel Area Health Care | Boscobel | (262) | 13,761 | -1.9% | |
| Oconto Hospital & Medical Center | Oconto | (157) | 5,422 | -2.9% | |
| Mayo Clinic-Franciscan Health Sparta | Sparta | (381) | 12,944 | -2.9% | |
| Indianhead Medical Center/Shell Lake | Shell Lake | (392) | 6,314 | -6.2% | |
| St. Nicholas Hospital | Sheboygan | (3,860) | 60,418 | -6.4% | |
| Southwest Health Center | Platteville | (1,821) | 27,284 | -6.7% | |
| Chippewa Valley Hospital | Durand | (986) | 14,480 | -6.8% | |
| Memorial Medical Center | Neillsville | (1,580) | 20,230 | -7.8% | |
| Aurora Sinai Medical Center | Milwaukee | (15,622) | 191,340 | -8.2% | |
| Edgerton Hospital & Health | Edgerton | (1,584) | 17,827 | -8.9% | |
| Children's Hospital Wisconsin-Fox Valley | Neenah | (1,847) | 19,658 | -9.4% | |
| St. Mary's Janesville Hospital | Janesville | (5,122) | 50,883 | -10.1% | |
| Columbia Center | Mequon | (856) | 6,506 | -13.2% | |
| Total all 22 Badger In-The-Red Hospitals | (43,598) | 1,698,000 | -2.6% | ||
| Total all 129 Wisconsin Badger Hospitals | 1,373,610 | 16,786,713 | 8.2% |
It is pretty clear to me that not just US Hospital Patients but also Health Insurance Companies should both be outraged by these extremely high Operating Profits of Hospitals like the ones in Wisconsin. And the Bottom Line Profits of Hospital Organizations all across the country are substantially higher than the Operating Profits.
But this is very good for future Health Insurance Pricing on the Health Insurance Exchange. This egregious Hospital Pricing is driving obnoxiously high Hospital Bottom Line Profits, year after year, especially during all of the Obama Administration where the stock market has continually been on fire. But now loaded with a better understanding of this information, Health Insurance Companies can now exert substantially downward Hospital Pricing Pressure on the Hospital Industry, and especially so on Wisconsin Hospitals.
And given that there are 22 Wisconsin Hospitals posting Operating Losses and many more posting modest Operating Profits, it only makes sense that Wisconsin fully expand Medicaid. The resultant higher Hospital Profits from Medicaid expansion should give Health Insurance Companies even more leverage to exert downward Hospital Pricing Pressure on Wisconsin Hospitals, which should drive down even more Health Insurance Premiums on the Health Insurance Exchange.
