Saturday, February 14, 2015

Michigan Non-Profit Hospital Net Assets (Financial Strength) Up 86% 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 Michigan 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 Michigan 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

CHE Trinity Health Livonia MI Sep 14   10,767
Mar 09      6,008 79%
Spectrum Health System Grand Rapids MI Dec 14     2,407
Jun 09      1,128 113%
Henry Ford Health System Detroit MI Sep 14     1,586
Dec 08      1,053 51%
McLaren Health Care Flint MI Dec 14     1,459
Sep 09         682 114%
Beaumont Health System Royal Oak MI Sep 14     1,266
Dec 08         787 61%
Sparrow Health System Lansing MI Sep 14        832
Dec 08         318 162%
MidMichigan Health Midland MI Dec 14        675
Jun 09         414 63%
Lakeland Hospitals St Joseph MI Dec 14        642
Sep 09         353 82%
Bronson Healthcare Group Kalamazoo MI Dec 14        634
Dec 08         226 181%
Oakwood Healthcare Dearborn MI Sep 14        565
Dec 08         234 141%
Munson Healthcare Traverse City MI Dec 14        539
Jun 09         264 104%

Total all 11


     11,467 86%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 11 largest Michigan Hospital Organizations totaled a massive $21,372 mil, up a very robust 86% from such Total Net Asset amounts of $11,467 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

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