Sunday, February 15, 2015

South Dakota Non-Profit Hospital Net Assets (Financial Strength) Up 90% 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 3 Non-Profit Hospital Organizations all headquartered in the State of South Dakota 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 3 South Dakota 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

Sanford Health Sioux Falls SD  Dec 14      2,110
Jun 09      1,242 70%
Avera Health Sioux Falls SD  Dec 14      1,499
Jun 09         675 122%
Regional Health Rapid City SD  Dec 14         662
Jun 09         326 103%

Total all 3


      2,243 90%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 3 largest South Dakota Hospital Organizations totaled $4,271 mil, up a very robust 90% from such Total Net Asset amounts of $2,243 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

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