Saturday, February 14, 2015

Minnesota Non-Profit Hospital Net Assets (Financial Strength) Up a Massive 194% 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 9 Non-Profit Hospital Organizations all headquartered in the State of Minnesota 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 9 Minnesota 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

Mayo Clinic Rochester MN Sep 14     8,371
Dec 08      2,326 260%
HealthPartners Bloomington MN Sep 14     2,375
Dec 08         503 372%
Allina Health System Minneapolis MN Dec 14     2,178
Dec 08         804 171%
Fairview Health Services Minneapolis MN Sep 14     1,687
Dec 08         732 130%
Essentia Health Minneapolis MN Sep 14        944
Jun 09         519 82%
Centracare Health System St Cloud MN Dec 14        828
Jun 09         381 117%
Children's Hospitals and Clinics Minneapolis MN Dec 14        715
Dec 08         370 93%
Park Nicollet Health Services St Louis Park MN Dec 14        675
Dec 08         299 126%
North Memorial Health Care Robbinsdale MN Sep 14        428
Dec 08         263 63%

Total all 9

      6,197 194%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 9 largest Minnesota Hospital Organizations totaled $18,201 mil, up an off-the-charts 194% from such Total Net Asset amounts of $6,197 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

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