Saturday, February 14, 2015

Massachusetts Non-Profit Hospital Net Assets (Financial Strength) Up 62% 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 11 Non-Profit Hospital Organizations all headquartered in the State of Massachusetts 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 11 Massachusetts 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

Partners Healthcare System Boston MA Dec 14     6,931
Sep 09      4,975 39%
Boston Childrens Hospital Boston MA Sep 14     4,784
Sep 09      2,516 90%
CareGroup Healthcare System Boston MA Sep 14     1,718
Sep 09         978 76%
BMC Health System Boston MA Sep 14     1,472
Sep 09      1,026 43%
Dana-Farber Cancer Institute Boston MA Sep 14     1,312
Sep 09         836 57%
Baystate Health Springfield MA Sep 14        912
Sep 09         361 153%
UMass Memorial HealthCare Worchester MA Sep 14        879
Sep 09         545 61%
Lahey Clinic Medical Center Burlington MA Jun 14        727
Sep 09         357 104%
SouthCoast Health System New Medford MA Dec 14        675
Sep 09         485 39%
Cape Cod Healthcare Hyannis MA Dec 14        501
Sep 09         288 74%
Covenant Health Systems Lexington MA Dec 13        454
Dec 08         242 88%

Total all 11


     12,609 62%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 11 largest Massachusetts Hospital Organizations totaled a massive $20,365 mil at the most recently reported date, up a solid 62% from such Total Net Asset amounts of $12,609 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

With such a solid Massachusetts Hospital Net Asset percentage increase, a key beneficiary of this will be Massachusetts 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 Massachusetts 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.