Indiana Non-Profit Hospital Organizations Net Income 10.0% of Revenues in 2013 and 11.3% in 2012

From a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA) as well as at the State of Indiana's Dept of Health website, I found 10 Indiana Non-Profit Hospital Organizations with Net Assets above $400 mil each.

One of these 10 Indiana Non-Profit Hospitals.....Community Health Network.... still hasn't published its December 2013 financial statements yet and thus I only included for 2013 below its 9 months ended September 30, 2013 operating data.  When it publishes its December 2013 financial statements, I'll then update the amounts included in the chart below.

These 10 Indiana Non-Profit Hospital Organizations generated Total Bottom Line Net Income in 2013 which was an exceptionally high 10.0% of Total Operating Revenues, which was down from the comparable off-the-charts 11.3% Income Margin in 2012.  For the most recent 4 years combined, this Total Bottom Line Profit Margin was a still way too high 9.4%, with 7 of the 10 posting Income Margins of 8.5% or better.

Altogether 5 of these 10 Indiana Non-Profit Hospital Organizations generated Bottom Line Net Income Margins of above 10.0% in both 2013 and in 2012.  All 5 of them in both years had Bottom Line Profit Margins exceeding that of the 30 Dow Industrials combined.  Instead of taking the high road and responsibly reducing their Patient Service Pricing, these 5 Indiana Non-Profit Hospital Organizations elected to retain these excessively high Bottom Line Profits, which also added to both their Net Assets and treasure chest of Investments in Stocks and Bonds.

Below are the Bottom Line Net Income and Total Operating Revenues for each of these 10 Indiana Non-Profit Hospital Organizations for 2013, for 2012 and for the most recent 4 years combined:

											4 Year
		Most	2013				2012				2010-13	4 Year	4 Year
		Recent	Bottom	2013	2013		Bottom	2012	2012		Bottom	2010-13	2010-13
		Fiscal	Line	Total	Net		Line	Total	Net		Line	Total	Net
		Year	Net	Operating	Income		Net	Operating	Income		Net	Operating	Income
Indiana Hospital Organ	City HQs	End	Income	Revenues	Margin		Income	Revenues	Margin		Income	Revenues	Margin
			mil $s	mil $s	%		mil $s	mil $s	%		mil $s	mil $s	%
Non-Profit Hospitals
Parkview Health System	Fort Wayne	Dec 13	174	1,141	15.2%		130	1,073	12.1%		334	3,912	8.5%
St Mary's Health	Evansville	Jun 13	78	518	15.1%		54	488	11.1%		272	1,903	14.3%
St Vincent Health	Indianapolis	Jun 13	328	2,761	11.9%		222	2,677	8.3%		1,265	9,292	13.6%
Beacon Health System	South Bend	Dec 13	90	821	11.0%		182	886	20.5%		305	2,584	11.8%
Indiana University Health	Indianapolis	Dec 13	541	5,247	10.3%		719	5,578	12.9%		1,712	19,194	8.9%
Franciscan Alliance	Mishawaka	Dec 13	245	2,609	9.4%		253	2,627	9.6%		851	9,823	8.7%
Deaconess Health System	Evansville	Sep 13	52	696	7.5%		47	677	6.9%		162	2,583	6.3%
Reid Hospital	Richmond	Dec 13	25	339	7.4%		13	352	3.7%		9	1,252	0.7%
Community Foundtn NW Ind	Munster	Jun 13	40	891	4.5%		45	861	5.2%		170	3,280	5.2%
Community Health Network	Indianapolis	Dec 13	53	1,272	4.2%		191	1,175	16.3%		433	4,857	8.9%
Total all 10			1,626	16,295	10.0%		1,856	16,394	11.3%		5,513	58,680	9.4%

There is a very positive aspect to these excessively high Bottom Line Profits of these Indiana Non-Profit Hospital Organizations.  These incredibly high Profits are getting added to the Net Assets (Financial Strength) of these Indiana Hospital Organizations.

Thus a key beneficiary of this should be Indiana citizens electing to buy health insurance on the Health Insurance Exchange.  This exceptional Net Asset growth driven by these exceedingly high Bottom Line Profits gives these Indiana Hospital Organizations 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.

And armed with audited financial data concerning the excessively high profits earned by these large Indiana Non-Profit Hospital Organizations in the past 4 years, Health Insurance Companies should be able to do a much better job in representing their policy holders, including those getting Health Insurance on the Health Insurance Exchange.

Virginia Non-Profit Hospital Organizations Net Income 13.8% of Revenues in 2013

From a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA), I found 8 Virginia Non-Profit Hospital Organizations with Net Assets above $400 mil each.

Virginia Hospital Center Arlington Health System posted First Closing numbers for December 2013 which I used below and I'll adjust them when the audited financial statements are published on EMMA.

These 8 Non-Profit Virginia Hospital Organizations generated Total Bottom Line Net Income in 2013 which was an off-the-charts 13.8% of Total Operating Revenues, which was up a bit from the comparable still off-the-charts 11.8% Income Margin in 2012.  For the most recent 4 years combined, this Total Bottom Line Profit Margin was a still way too high 10.6%.

The two main drivers of this sky high 13.8% Total Profit Margin in 2013 were Arlington-based Virginia Hospital Center Arlington Health System at 26.8% and Falls Church-based Inova Health System at 20.4%.  There is something way out of whack across the Potomac that the Feds are clearly not on top of.  If you are trying to control US Health Care Costs, there is no way you can permit two large Non-Profit Hospital Organizations to post Bottom Line Net Income as a Percentage of Total Operating Revenues both north of 20.0% for each of the two most recent years, and particularly so for two Non-Profit Hospital Organizations so incredibly close to DC.  I think this is a complete embarrassment.  Where's Jeff Zients when you need him again to clean up some Health Care mess?  Just sayin!

Altogether 6 of these 8 Virginia Non-Profit Hospital Organizations generated Bottom Line Net Income Margins of 10.0% or higher in 2013.  All 6 of them had Bottom Line Profit Margins exceeding that of the 30 Dow Industrials combined.  Instead of taking the high road and responsibly reducing their Patient Service Pricing, these 6 Virginia Non-Profit Hospital Organizations elected to retain these excessively high Bottom Line Profits, which also added to both their Net Assets and treasure chest of Investments in Stocks and Bonds.

Below are the Bottom Line Net Income and Total Operating Revenues for each of these 8 Virginia Non-Profit Hospital Organizations for 2013, for 2012 and for the most recent 4 years combined:

											4 Year
		Most	2013				2012				2010-13	4 Year	4 Year
		Recent	Bottom	2013	2013		Bottom	2012	2012		Bottom	2010-13	2010-13
		Fiscal	Line	Total	Net		Line	Total	Net		Line	Total	Net
		Year	Net	Operating	Income		Net	Operating	Income		Net	Operating	Income
Virginia Hospital Organ	City HQs	End	Income	Revenues	Margin		Income	Revenues	Margin		Income	Revenues	Margin
			mil $s	mil $s	%		mil $s	mil $s	%		mil $s	mil $s	%
Non-Profit Hospitals
Virginia Hospital Ctr Arlington	Arlington	Dec 13	103	385	26.8%		83	388	21.4%		270	1,472	18.3%
Inova Health System	Falls Church	Dec 13	518	2,539	20.4%		506	2,362	21.4%		1,689	9,448	17.9%
Augusta Health Care	Augusta County	Dec 13	39	264	14.8%		52	264	19.7%		159	1,046	15.2%
Sentara HealthCare	Norfolk	Dec 13	612	4,299	14.2%		431	4,068	10.6%		1,657	15,271	10.9%
VCU Health	Richmond	Jun 13	222	2,058	10.8%		134	1,795	7.5%		635	7,327	8.7%
Carilion Clinic	Roanoke	Sep 13	143	1,434	10.0%		71	1,324	5.4%		64	5,149	1.2%
Centra Health	Lynchburg	Dec 13	60	684	8.8%		48	667	7.2%		177	2,598	6.8%
Valley Health System	Winchester	Dec 13	19	743	2.6%		44	742	5.9%		158	2,864	5.5%
Total all 8			1,716	12,406	13.8%		1,369	11,610	11.8%		4,809	45,175	10.6%

There is a very positive aspect to these excessively high Bottom Line Profits of these Virginia Non-Profit Hospital Organizations.  These incredibly high Profits are getting added to the Net Assets (Financial Strength) of these Virginia Hospital Organizations.

Thus a key beneficiary of this should be Virginia citizens electing to buy health insurance on the Health Insurance Exchange.  This exceptional Net Asset growth driven by these exceedingly high Bottom Line Profits gives these Virginia Hospital Organizations 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.

And armed with audited financial data concerning the excessively high profits earned by these large Virginia Non-Profit Hospital Organizations in the past 4 years, Health Insurance Companies should be able to do a much better job in representing their policy holders, including those getting Health Insurance on the Health Insurance Exchange.

Texas Non-Profit Non-County District Hospital Organizations Net Income 11.7% of Revenues in 2013

 From a review of audited annual financial statements shown at Electronic Municipal Market Access (EMMA), I found 13 Non-Profit, Non-County District Texas Hospital Organizations with Net Assets above $400 mil each.

I didn't include the excessively profitable University of Texas System Hospitals and Clinics below since I couldn't find their separate financial statements in EMMA.

These 13 Non-Profit Non-County District Texas Hospital Organizations generated Total Bottom Line Net Income in 2013 which was an amazingly high 11.7% of Total Operating Revenues, which was up quite a bit from the comparable 7.2% Income Margin in 2012.  For the most recent 4 years combined, this Total Bottom Line Profit Margin was a still much too high 8.7%.

The two main drivers of this sky high 10.1% Total Profit Margin in 2013 were Houston-based The Methodist Health System at 26.1%, Fort Worth-based Cook Children's Health at 23.4% and Arlington-based Texas Health Resources at 20.0%.

Altogether 8 of these 13 Texas Non-Profit Hospital Organizations generated Bottom Line Net Income Margins of 11.9% or higher in 2013.  All 8 of them had Bottom Line Profit Margins exceeding that of the 30 Dow Industrials combined.  And all 8 of them had double-digit Percentage Bottom Line Net Income Margins for the most recent 4 years combined.  Instead of taking the high road and responsibly reducing their Patient Service Pricing, these 8 Texas Non-Profit Hospital Organizations elected to retain these excessively high Bottom Line Profits, which also added to both their Net Assets and treasure chest of Investments in Stocks and Bonds.

Below are the Bottom Line Net Income and Total Operating Revenues for each of these 13 Texas Non-Profit Hospital Organizations for 2013, for 2012 and for the most recent 4 years combined:

											4 Year
		Most	2013				2012				2010-13	4 Year	4 Year
		Recent	Bottom	2013	2013		Bottom	2012	2012		Bottom	2010-13	2010-13
		Fiscal	Line	Total	Net		Line	Total	Net		Line	Total	Net
	City	Year	Net	Operating	Income		Net	Operating	Income		Net	Operating	Income
Texas Hospital Organization	HQs	End	Income	Revenues	Margin		Income	Revenues	Margin		Income	Revenues	Margin
			mil $s	mil $s	%		mil $s	mil $s	%		mil $s	mil $s	%
Non-Profit Hospitals
…..Non-County District Hospitals
The Methodist Hospital System	Houston	Dec 13	684	2,616	26.1%		387	2,331	16.6%		1,527	9,103	16.8%
Cook Children's Health	Fort Worth	Sep 13	282	1,205	23.4%		279	1,127	24.8%		875	4,162	21.0%
Texas Health Resources	Arlington	Dec 13	768	3,846	20.0%		483	3,725	13.0%		1,845	13,964	13.2%
Children's Med Ctr Dallas	Dallas	Dec 13	215	1,151	18.7%		146	1,052	13.9%		594	4,099	14.5%
United Regional Health Care	Wichita Falls	Dec 13	52	293	17.7%		40	279	14.3%		167	1,135	14.7%
Methodist Health System	Dallas	Sep 13	177	1,086	16.3%		159	969	16.4%		465	3,776	12.3%
Texas Children's Hospital	Houston	Sep 13	303	2,340	12.9%		216	2,044	10.6%		764	7,678	10.0%
Baylor Health System	Dallas	Jun 13	489	4,124	11.9%		220	3,846	5.7%		1,659	15,260	10.9%
Memorial Hermann Healthcare	Houston	Jun 13	170	3,578	4.8%		154	3,351	4.6%		713	13,025	5.5%
Christus Health	Irving	Jun 13	160	3,701	4.3%		(41)	3,596	-1.1%		393	14,377	2.7%
Baylor College of Medicine	Houston	Jun 13	41	1,365	3.0%		(150)	1,272	-11.8%		(207)	5,063	-4.1%
East Texas Medical Center	Tyler	Oct 13	21	971	2.2%		12	942	1.3%		95	3,715	2.6%
Scott & White Healthcare	Temple	Aug 13	(58)	2,062	-2.8%		16	2,047	0.8%		91	7,828	1.2%
Total all 13 Non-County District Hospitals			3,304	28,338	11.7%		1,921	26,581	7.2%		8,981	103,185	8.7%

There is a very positive aspect to these excessively high Bottom Line Profits of these Texas Non-Profit Hospital Organizations.  These high Profits are getting added to the Net Assets (Financial Strength) of these Texas Hospital Organizations.

Thus a key beneficiary of this should be Texas citizens electing to buy health insurance on the Health Insurance Exchange.  This exceptional Net Asset growth driven by these exceedingly high Bottom Line Profits gives these Texas Hospital Organizations 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.

And armed with audited financial data concerning the excessively high profits earned by these large Texas Non-Profit Hospital Organizations in the past 4 years, Health Insurance Companies should be able to do a much better job in representing their policy holders, including those getting Health Insurance on the Health Insurance Exchange.