Saturday, February 14, 2015

Washington DC Non-Profit Hospital Net Assets (Financial Strength) 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), I found 3 Non-Profit Hospital Organizations all headquartered in Washington or with very substantial hospital operations there 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 Washington DC 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

MedStar Health Columbia MD Sep 14     1,478
Jun 09         647 128%
Sibley Memorial Hospital Washington DC DC Dec 14        965
Dec 08         513 88%
Children's National Medical Center Washington DC DC Dec 14        909
Jun 09         439 107%

Total all 3


      1,599 110%

As you can see from the above chart, the Total Net Assets (Financial Strength) of these 3 largest Washington DC Hospital Organizations totaled $3,352 mil, up a very impressive 110% from such Total Net Asset amounts of $1,599 mil at their fiscal year ends which included the 2008-09 US Financial Meltdown.

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