Saturday, February 14, 2015

Louisiana Non-Profit Hospital Net Assets (Financial Strength) Up 73% Since 2008 Financial Meltdown ..... The Main Reason Health Insurance Premiums Are Now 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 Louisiana 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 Louisiana 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

Franciscan Missionaries Our Lady Health Baton Rouge LA Dec 14     1,375
Jun 09         830 66%
Willis-Knighton Medical Center Shreveport LA Sep 13        726
Sep 09         430 69%
Ochsner Health System Jefferson LA Sep 14        632
Dec 08         321 97%

Total all 3


      1,581 73%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 3 largest Louisiana Hospital Organizations totaled $2,733 mil at the most recently reported date, up a solid 73% from such Total Net Asset amounts of $1,581 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

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