Sunday, February 15, 2015

Pennsylvania Non-Profit & Publicly-held Hospitals Net Assets Up 110% 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) and financial statements in SEC filings, I found 14 Non-Profit Hospital Organizations and 2 Publicly-held Hospital Companies all headquartered in the State of Pennsylvania 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 16 Pennsylvania 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

UPMC Pittsburgh PA  Dec 14      5,430
Jun 09      2,756 97%
Children's Hospital Philadelphia Philadelphia PA  Dec 14      3,550
Jun 09      1,938 83%
University Penn Health System Philadelphia PA Sep 14     2,639
Jun 09      1,163 127%
Geisinger Health System Danville PA Sep 14     2,527
Jun 09         901 180%
Main Line Health Paoli PA  Dec 14      2,359
Jun 09      1,346 75%
Lehigh Valley Health Network Allentown PA  Dec 14      1,320
Jun 09         590 124%
Lancaster General Health Lancaster PA  Dec 14      1,108
Jun 09         622 78%
WellSpan Health York PA Sep 14        920
Jun 09         387 138%
Abington Health Abington PA  Dec 14         873
Jun 09         518 69%
Guthrie Health Sayre PA  Dec 14         720
Jun 09         375 92%
Pinnacle Health System Harrisburg PA Sep 14        655
Jun 09         304 115%
St Luke's University Health Network Bethlehem PA  Dec 14         630
Jun 09         298 111%
Albert Einstein Healthcare Network Philadelphia PA  Dec 14         531
Jun 09         401 32%
Susquehanna Health System Williamsport PA  Dec 14         474
Jun 09         226 110%
Universal Health Services (Publicly-held Co) King of Prussia PA Sep 14     3,657
Dec 08      1,771 106%
Select Medical Holdings (Publicly-held Co) Mechanicsburg PA Sep 14        764
Dec 08        (186) NM

Total all 16


     13,410 110%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 16 largest Pennsylvania Hospital Organizations totaled a massive $28,157 mil, up a very impressive 110% from such Total Net Asset amounts of $13,410 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

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