Saturday, February 14, 2015

Kentucky Non-Profit Hospital Net Assets (Financial Strength) Up 106% 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 Kentucky 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 Kentucky 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

Baptist Healthcare System Louisville KY Nov 14     1,697
Aug 09      1,036 64%
Norton Health Care Louisville KY Sep 14        921
Dec 08         399 131%
Saint Elizabeth Medical Center Edgewood KY Sep 14        878
Dec 08         265 231%

Total all 3


      1,700 106%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 3 largest Kentucky Hospital Organizations totaled $3,496 mil at the most recently reported date, up a very impressive 106% from such Total Net Asset amounts of $1,700 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

With such a very robust Kentucky Hospital Net Asset percentage increase, a key beneficiary of this will be Kentucky 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 Kentucky 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.