Saturday, February 14, 2015

Arizona Non-Profit Hospital Net Assets (Financial Strength) Up 147% 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), I found 3 Non-Profit Hospital Organizations all headquartered in the State of Arizona 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 3 Arizona 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

Banner Health Phoenix AZ Sep 14     4,629
Dec 08      1,669 177%
Scottsdale Healthcare Scottsdale AZ Sep 14        784
Sep 09         435 80%
Northern Arizona Healthcare Flagstaff AZ Dec 14        657
Jun 09         354 86%

Total all 3


      2,458 147%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 3 largest Arizona Hospital Organizations totaled $6,070 mil, up a huge 147% from such Total Net Asset amounts of $2,458 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

With such an impressive Arizona Hospital Net Asset percentage increase, a key beneficiary of this will be Arizona 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 Arizona 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.