Saturday, February 14, 2015

Maryland Non-Profit Hospital Net Assets (Financial Strength) Up 120% 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 6 Non-Profit Hospital Organizations all headquartered in the State of Maryland 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 6 Maryland 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

Johns Hopkins Health System Baltimore MD Dec 14     3,759
Jun 09      1,273 195%
University Maryland Medical System Baltimore MD Dec 14     1,601
Jun 09         904 77%
MedStar Health Columbia MD Sep 14     1,478
Jun 09         647 128%
Bon Secours Health System Baltimore MD Nov 14     1,331
Aug 09         703 89%
LifeBridge Health Baltimore MD Dec 14        759
Jun 09         406 87%
Anne Arundel Health Annapolis MD Dec 14        401
Jun 09         301 33%

Total all 6


      4,234 120%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 6 largest Maryland Hospital Organizations totaled $9,329 mil, up a huge 120% from such Total Net Asset amounts of $4,234 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

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