Sunday, February 15, 2015

North Carolina Non-Profit Hospital Net Assets (Financial Strength) Up 68% 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 15 Non-Profit Hospital Organizations all headquartered in the State of North Carolina 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 15 North Carolina 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

Carolinas Health Care System Charlotte NC Sep 14     4,278
Dec 08      2,340 83%
Duke University Health System Durham NC  Dec 14      3,078
Jun 09      1,392 121%
Novant Health Winston-Salem NC Sep 14     2,679
Dec 08      1,557 72%
Cone Health Greensboro NC  Dec 14      1,496
Sep 09         894 67%
Mission Health System Asheville NC  Dec 14      1,427
Sep 09         882 62%
University North Carolina Hospitals Chapel Hill NC  Dec 14      1,338
Jun 09         911 47%
Vidant Health Greenville NC Sep 14     1,014
Sep 09         587 73%
North Carolina Baptist Hospital Winston-Salem NC Sep 14     1,008
Jun 09         715 41%
WakeMed Health Raleigh NC  Dec 14         920
Sep 09         719 28%
CaroMont Health Gastonia NC  Dec 14         736
Jun 09         386 91%
FirstHealth of the Carolinas Pinehurst NC  Dec 14         691
Sep 09         458 51%
New Hanover Regional Medical Center Wilmington NC Sep 14        643
Sep 09         450 43%
Wake Forest Univ Health Sciences  Winston-Salem NC Sep 14        637
Jun 09         510 25%
Rex Healthcare Raleigh NC  Jun 14         480
Jun 09         297 62%
Cape Fear Valley Health System Fayetteville NC  Dec 14         456
Sep 09         315 45%

Total all 15


     12,413 68%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 15 largest North Carolina Hospital Organizations totaled a massive $20,881 mil at the most recently reported date, up a very solid 68% from such Total Net Asset amounts of $12,413 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

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