As of the July, 2022, release via CMS

HIGHLANDS MEDICAL CENTER

CMS id: 010061
380 WOOD COVE ROAD, SCOTTSBORO AL 35768. County: JACKSON
System: JACKSON CO HC AUTHORITY
CBSA: Scottsboro, AL

The 95-bed, acute-care hospital had $-10,054,590 in net service to patients*, with a total profit margin of 2.27498% in fiscal year 2021, the latest year available.
It spent 7.98% of its operating expenses on uncompensated care and reported $0 in Medicaid shortfall.

* For more about Net Service to Patients and operating revenue, please the finance section below.

Note: Medians are from acute-care hospitals with "complete" fiscal years. For more about how we calculated medians and cost reports in general, please click here.

Details

	2017	2018	2019	2020	2021
# of days in fyear	365	365	365	366	365
Ownership	gov	gov	gov	gov	gov
Acute beds Median	158 118	158 118	35 119.5	35 118	35 119
Total beds Median	218 162	218 162	95 162	95 162	95 163.5
FTEs Median	434.21 788.06	420.68 793.42	427.46 806.03	420.22 787.61	503.71 804.34

Finances As they appear in worksheet G3 of the cost reports.

Note: Net Patient Revenue is considered operating revenue, which means Net Service to Patients is considered operating profit. Click here for more about cost report financials

Hospital cost reports are an enormously complicated dataset. There are whole organizations and an offical CMS vendor dedicated to helping researchers work with the data.
It's important to understand that hospital financials in cost reports are not organized in the same as other sources such as annual financial reports to bond holders.

The biggest difference is the concept of operating revenue and profit. Net Service to patients (NS2P), which is the sum of net patient revenue minus operating expenses, is considered the equivalent of operating profit according to the Medicaid and CHIP Payment and Access Commission (MACPAC). See the last paragraph of "Primary Data Sources" on page 55 of Annual Analysis of Disproportionate Share Hospital Allotments to States (PDF).

That would make Net Patient Revenue = operating revenue.

All this makes things challenging when comparing what's reported in cost reports to other sources. It becomes clearer when you consider that, beyond the purpose of reimbursement, cost reports are a tool for policymakers trying to understand the financial situation of a hospital doing the tasks specific to hospitals.

In other words, while a facility with a division that formulates drugs might include earnings from that as operating revenue in their corporate annual result, this is not central to the operations of a hospital caring for patients and so it is counted as "other income." (See below the financials section for more on "other income")

The healthcare consulting firm HMP, in a former partnership with Modern Healthcare, did develop a formula for estimating operating revenue closer to what one might find in other sources. We no longer use this for the following reasons:

The measure was not widely used beyond HMP and Modern Healthcare. Many hospitals had their own internal estimates of operating revenue and profit.
Because of this, there was confusion when reporting operating results for individual hospitals. There was often pushback when a facility's internal numbers did not match what Modern Healthcare was reporting.
The formula includes revenue from portions of the "other income" section, which may also include non-operating revenue. HMP themselves point out in a caveat on their site that they cannot exclude all non-operating revenue from their measure.

HMP's operating measure has proven problematic in the past for our reporting and the partnership with them ended years ago. It's best to not use a measure that we alone cannot defend.

	2017	2018	2019	2020	2021
Net patient revenue ? Median	41,295,557 150,932,746	39,589,042 158,950,878	40,307,939 168,696,998	38,168,453 163,454,693	41,172,862 186,589,412
Operating expenses Median	49,449,610 149,311,209	43,255,517 156,110,414	43,059,869 164,890,568	47,065,944 166,516,854	51,227,452 180,120,888
Net income from service 2 patients (NS2P) ? Median	-8,154,053 -964,173	-3,666,475 -643,601.5	-2,751,930 -116,254	-8,897,491 -5,025,862	-10,054,590 -1,284,564
NS2P margin ? Median	-19.75% -0.62	-9.26% -0.29	-6.83% 0.18	-23.31% -5.07	-24.42% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for HIGHLANDS MEDICAL CENTER compared to all** acute-care hospitals, from CMS cost reports.
Note: NS2P is considered operating margin by MACPAC. The chart below is interactive: click or touch to see more.

* Data range does not show outliers, which fall beyond the minimum and maximum of the range.
** From cost reports with complete fiscal years. Number of acute-care hospitals available to calculate medians:

2017	2018	2019	2020	2021
3,157	3,092	3,050	3,052	2,566

	2017	2018	2019	2020	2021
Other income* Median Click here to show/hide details	2,887,366 5,089,215	3,294,604 4,572,541	3,389,533 5,268,134	8,079,555 13,092,619	11,247,135 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	35,881 224,999	35,152 199,009	16,274 206,870.5	9,149 194,343	9,495 249,496
⊳ Line 7: Investments ? ⊳ Median	19,713 299,524	14,878 188,688.5	8,827 370,813	5,242 309,361.5	1,624 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	-988	0	5,671	650	-34,092
⊳ Line 11: Rebates and refunds of expenses	29,225	11,192	9,837	20,541	11,045
⊳ Line 12: Parking lot receipts	0	0	0	0	0
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	232	125,150	0	0	20
⊳ Line 15: Revenue from rental of living quarters	0	0	0	0	0
⊳ Line 16: Revenue from sale of medical and surgical supplies	0	0	0	0	0
⊳ Line 17: Revenue from sale of drugs to other than patients	46	2,562	12,699	6,409	536
⊳ Line 18: Revenue from sale of medical records and abstracts	281	0	201	1,505	2,015
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	0	0	0	0
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	67,848	55,553	84,524	65,710	6,741
⊳ Line 21: Rental of vending machines	8,866	7,338	7,383	3,549	3,756
⊳ Line 22: Rental of hospital space	6,475	11,252	6,031	2,998	6,033
⊳ Line 23: Gov appropriations ? ⊳ Median	2,072,509 1,017,693	145,000 983,261.5	157,083 1,173,286	145,000 1,987,202	144,999 1,597,664
⊳ Sum Line 24	647,278	2,886,527	3,081,003	7,818,802	11,094,963
Total income ? Median	-5,266,687 6,586,430	-371,871 6,767,106	637,603 8,419,950	-817,936 8,094,175	1,192,545 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	-5,266,687 6,043,842	-371,871 5,845,112	637,603 7,606,259	-817,936 7,283,041	1,192,545 14,957,241
Net margin Median	-11.92019% 4.62%	-0.86716% 4.42%	1.45913% 5.16%	-1.76859% 5.2%	2.27498% 9.25%

* About "Other income": Other income, or line 25 in worksheet G3, is the sum of lines 6 through 24. It includes three lines that are considered non-operating revenue - contributions, investments and government appropriations. Medians are included for these three lines. It also contains items that are not central to providing healthcare, such as revenue from parking or gift shops.
"Sum Line 24" is a special case. Called "Other (specify)" in the cost reports, CMS allows for this line to be "subscripted," or divided into sublines like 002400, 002401, 002402. And hospitals do that, up to 100 lines, to detail income (and sometimes negative returns) that are otherwise not covered in the previous "other" lines. Therefore, "Sum Line 24" is the sum of all the lines 24.

Range* of total profit (loss) margins

= Total margin for HIGHLANDS MEDICAL CENTER compared to all** acute-care hospitals, from CMS cost reports.
The chart below is interactive: click or touch to see more.

2017	2018	2019	2020	2021
3,157	3,092	3,050	3,052	2,566

Medicare revenue

Inpatient and outpatient revenue

	2017	2018	2019	2020	2021
All inpatient revenue Median Click here to show/hide details	10,189,958 23,241,334	9,309,789 23,709,545	8,764,451 24,248,380	8,676,192 22,858,541	8,355,385 23,620,613
"All inpatient revenue" is made up of any Medicare payments for routine inpatient, swingbed SNFs, TEFRA, IPF, IRF, inpatient long-term care, CAH and inpatient SNF facilities. Medians are only calculated when there are sufficient facilities reporting revenue.
⊳ Routine inpatient revenue ⊳ Median	8,368,688 21,577,146	7,550,015 22,041,594	7,068,658 22,722,063	7,296,187 21,570,441	7,162,829 22,140,684
⊳ Swingbeds ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Tax Equity and Fiscal Responsibility Act payments (TEFRA) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Inpatient psychiatric facility (IPF) ⊳ Median	0 1,845,420	0 1,757,392	0 1,738,842	0 1,510,463	0 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	0 3,535,627	0 3,746,588	0 3,782,288	0 3,865,578	0 3,983,889
⊳ Long-term care hospital (LTCH) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Critical-access hospitals ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Skilled-nursing facilities (SNF) ⊳ Median	1,821,270 1,203,033	1,759,774 1,215,295	1,695,793 1,313,657	1,380,005 1,365,298	1,192,556 1,179,746
All outpatient revenue Median Click here to show/hide details	6,463,204 11,160,864	5,708,352 11,987,345	5,154,071 12,926,866	4,722,729 11,884,480	4,126,107 13,145,163
"All outpatient revenue" is made up of any payments for routine outpatient, HHA, CMHC, rural health and other federally-qualified health clinics. Medians are only calculated when there are sufficient facilities reporting revenue.
⊳ Routine outpatient revenue ⊳ Median	5,241,147 10,918,923	4,590,623 11,706,976	4,141,532 12,615,917	3,722,265 11,458,116	3,470,776 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	1,222,057 1,282,808	1,117,729 1,407,728	1,012,539 1,341,512	1,000,464 1,407,046	655,331 1,476,867
⊳ Community mental health clinics (CMHC) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Rural health clinics ⊳ Median	0 618,038	0 697,279	0 690,232	0 684,010	0 670,558
⊳ Other federally qualified health clinics ⊳ Median	0 --	0 --	0 --	0 --	0 --

Other payments

Item	2017	2018	2019	2020	2021
Graduate Medical Education (GME) Median	0 3,284,314	0 3,250,551	0 3,386,837	0 3,360,806	0 3,508,953
Disproportionate-share hospital (DSH) Median	208,838 594,888	184,540 595,761	155,344 577,894	153,399 542,168	151,909 549,667
Outlier Median	13,103 582,572	16,928 538,116	18,326 212,434	63,550 126,559	53,103 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	516,985 3,662,910	439,494 3,730,911	1,477,629 4,081,319	0 4,643,908	0 4,389,147
Charity care Median	195,502 2,654,636	424,719 2,940,659	436,875 3,380,215	648,952 3,488,738	313,508 3,233,405
Uncompensated care (UCC) Median	3,723,209 5,147,790	3,582,543 5,337,617	3,744,340 5,711,082	5,067,208 5,923,418	4,085,725 5,508,107
UCC as a % of operating expenses Median	7.53% 3.24	8.28% 3.12	8.70% 3.21	10.77% 3.3	7.98% 2.86
Total shortfall/UCC Median	4,240,194 9,489,989	4,022,037 9,424,297	5,221,969 10,120,158	5,067,208 11,171,337	4,085,725 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	19,046,456 52,142,039	18,450,959 54,485,252	19,033,676 57,395,589	19,556,682 58,830,919	24,032,775 61,722,907
Salaries as a % of operating expenses Median	38.52 36.68	42.66 36.56	44.20 36.37	41.55 35.93	46.91 35.24
Intern, resident salaries* Median	0 2,598,592	0 2,686,824	0 2,753,773	0 2,937,156	0 2,909,848
Contract intern, resident salaries* Median	0 1,251,927	0 1,186,494	0 1,204,885	0 1,279,653	0 1,469,317
Contract adjusted salaries, direct-care Median	655,359 1,449,244	699,758 1,475,986	726,629 1,563,078	1,358,609 1,721,954	1,699,098 2,991,828
Contract hours, direct-care Median	8,981.00 22,725	9,278.00 23,018.5	9,789.27 24,503.48	16,388.00 25,026.5	23,627.04 33,786
Contract wages, direct-care Median	72.97 64.67	75.42 64.53	74.23 65.06	82.90 68.97	71.91 88.94

* in an approved program

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Cost reports are self-reported by the facility, are subject to revision and should be considered preliminary.

* Net Service to patients (NS2P) equals net patient revenue minus operating expenses. NS2P is considered the equivalent of operating profit according to the Medicaid and CHIP Payment and Access Commission (MACPAC). See the last paragraph of "Primary Data Sources" on page 55 of Annual Analysis of Disproportionate Share Hospital Allotments to States (PDF).

About medians

Medians are calculated from reports with "complete" fiscal years, or reports with fiscal years of at least 300 days and no more than 420 days.

In cases where there are fewer than 50 values reported, medians are not calculated. For childrens' hospitals, it's when fewer than 20 are reported.

Web app by Tim Broderick | email.