Saturday, February 14, 2015

Alabama Non-Profit & Publicly-held Hospital Net Assets (Financial Strength) Up 436% Since 2008 Financial Meltdown ..... The Main Reason Health Insurance Premiums Are Now So Reasonable on Health Insurance Exchange

From a review of the Electronic Municipal Market Access (EMMA) and financial statements in SEC filings, I found 3 Non-Profit Hospital Organizations and 1 Publicly-held Hospital Company all headquartered in the State of Alabama 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 (Deficits) of these 4 Alabama Hospital Organizations at both the most recent reported date and also at the end of the Fiscal Year which included the late 2008 US Financial Meltdown:

Net Net

Assets Assets


Balance Balance Increase

Sheet Sheet Since

Date Date FYE

Most Recent
Including Including Including

Recent Balance
2008-09 2008-09 2008-09

Balance Sheet
City State Sheet Net
Financial Financial Financial
US Hospital Organization HQs HQs Date Assets
Meltdown Meltdown Meltdown

mil $s
mil $s

UAB Health System Birmingham AL Dec 14     1,076
Sep 09         744 45%
Children's Hospital Alabama Birmingham AL Dec 14        912
Dec 08         418 118%
City of Huntsville Health Care Authority Huntsville AL Dec 14        870
Jun 09          569 53%
HealthSouth (Publicly-held Co) Birmingham AL Sep 14        593
Dec 08      (1,087) 155%

Total all 4


         644 436%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 4 largest Alabama Hospital Organizations totaled $3,451 mil, up a massive 436% from such Total Net Asset amounts of $644 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

With such an incredibly impressive Alabama Hospital Net Asset percentage increase, a key beneficiary of this will be Alabama citizens who have elected or will be electing to buy health insurance on the Health Insurance Exchange.  This superb Net Asset growth has given and will continue to give these Alabama Hospitals 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.