Sunday, February 15, 2015

Tennessee Non-Profit & Publicly-held Hospital Net Assets (Financial Strength) Up 5,328% 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 7 Non-Profit Hospital Organizations and 5 Publicly-held Hospital Companies all headquartered in the State of Tennessee with Net Assets or (Deficits) (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 (Deficits) of these 12 Tennessee 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

St Jude Children's Research Hospital Memphis TN  Dec 14      3,592
Jun 09      1,907 88%
Baptist Memorial Health Care Memphis TN  Dec 14      1,632
Sep 09      1,501 9%
Methodist Le Bonheur Healthcare Memphis TN Sep 14     1,241
Dec 08         451 175%
Covenant Health Knoxville TN Sep 14     1,072
Dec 08         614 75%
Mountain States Health Alliance Johnson City TN  Dec 14         737
Jun 09         450 64%
West Tennessee Healthcare Jackson TN  Dec 14         582
Jun 09         425 37%
Wellmont Health System Kingsport TN  Dec 14         546
Jun 09         325 68%
Community Health Systems (Publicly-held Co) Franklin TN Sep 14     3,970
Dec 08      1,673 137%
LifePoint Hospitals (Publicly-held Co) Brentwood TN  Dec 14      2,182
Dec 08      1,656 32%
Amsurg (Publicly-held Co) Nashville TN Sep 14     2,058
Dec 08         463 344%
Acadia Healthcare (Publicly-held Co) Franklin TN  Dec 14         881
Dec 08           16 5406%
HCA (Publicly-held Co) Nashville TN Dec 14   (6,498)
Dec 08     (9,260) 25%

Total all 12


         221 5,328%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 12 largest Tennessee Hospital Organizations totaled $11,995 mil, up an incredibly off-the-charts 5,328% from such Total Net Asset amounts of $221 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

With such an incredibly off-the-charts Tennessee Hospital Net Asset percentage increase, a key beneficiary of this will be Tennessee 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 Tennessee 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.