As of the July, 2022, release via CMS

VERDE VALLEY MEDICAL CENTER

CMS id: 030007
269 SOUTH CANDY LANE, COTTONWOOD AZ 86326. County: YAVAPAI
System: NO AZ HEALTHCARE
CBSA: Prescott Valley-Prescott, AZ

The 87-bed, acute-care hospital had $23,769,750 in net service to patients*, with a total profit margin of 31.60399% in fiscal year 2021, the latest year available.
It spent 5.57% of its operating expenses on uncompensated care and reported $5,125,418 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	nfp	nfp	nfp	nfp	nfp
Acute beds Median	80 118	79 118	74 119.5	74 118	74 119
Total beds Median	104 162	103 162	98 162	87 162	87 163.5
FTEs Median	705.54 788.06	703.90 793.42	678.53 806.03	671.19 787.61	612.26 804.34

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	139,024,702 150,932,746	145,593,886 158,950,878	152,905,969 168,696,998	155,852,092 163,454,693	175,713,010 186,589,412
Operating expenses Median	130,515,765 149,311,209	126,294,217 156,110,414	131,394,621 164,890,568	136,717,261 166,516,854	151,943,260 180,120,888
Net income from service 2 patients (NS2P) ? Median	8,508,937 -964,173	19,299,669 -643,601.5	21,511,348 -116,254	19,134,831 -5,025,862	23,769,750 -1,284,564
NS2P margin ? Median	6.12% -0.62	13.26% -0.29	14.07% 0.18	12.28% -5.07	13.53% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for VERDE VALLEY 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	13,541,591 5,089,215	13,370,921 4,572,541	15,633,000 5,268,134	14,135,161 13,092,619	46,439,230 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	0 199,009	0 206,870.5	0 194,343	0 249,496
⊳ Line 7: Investments ? ⊳ Median	10,602,783 299,524	10,407,491 188,688.5	11,065,000 370,813	6,763,423 309,361.5	36,917,623 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	0	0	0	0	0
⊳ Line 11: Rebates and refunds of expenses	0	0	0	0	0
⊳ 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	0	0	0	0	0
⊳ 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	0	0	0	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	0	0	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	0	0	0	0
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	0	0	0	0
⊳ Line 21: Rental of vending machines	0	0	0	0	0
⊳ Line 22: Rental of hospital space	0	0	0	0	0
⊳ Line 23: Gov appropriations ? ⊳ Median	0 1,017,693	0 983,261.5	0 1,173,286	0 1,987,202	0 1,597,664
⊳ Sum Line 24	2,938,808	2,963,430	4,568,000	7,371,738	9,521,607
Total income ? Median	22,050,528 6,586,430	32,670,590 6,767,106	37,144,348 8,419,950	33,269,992 8,094,175	70,208,980 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	22,050,528 6,043,842	32,670,590 5,845,112	37,144,348 7,606,259	33,269,992 7,283,041	70,208,980 14,957,241
Net margin Median	14.45308% 4.62%	20.55209% 4.42%	22.03903% 5.16%	19.57205% 5.2%	31.60399% 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 VERDE VALLEY 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	25,316,060 23,241,334	29,569,348 23,709,545	30,453,850 24,248,380	25,907,277 22,858,541	29,363,105 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	24,897,208 21,577,146	29,191,932 22,041,594	30,257,885 22,722,063	25,907,277 21,570,441	29,363,105 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	418,852 1,845,420	377,416 1,757,392	195,965 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	0 1,203,033	0 1,215,295	0 1,313,657	0 1,365,298	0 1,179,746
All outpatient revenue Median Click here to show/hide details	16,010,570 11,160,864	16,080,885 11,987,345	17,974,914 12,926,866	20,377,964 11,884,480	21,913,993 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	16,010,570 10,918,923	16,080,885 11,706,976	17,974,914 12,615,917	20,377,964 11,458,116	21,913,993 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	0 1,282,808	0 1,407,728	0 1,341,512	0 1,407,046	0 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	1,562,790 3,284,314	1,729,131 3,250,551	1,784,658 3,386,837	1,759,884 3,360,806	1,860,562 3,508,953
Disproportionate-share hospital (DSH) Median	407,048 594,888	465,615 595,761	479,039 577,894	352,833 542,168	374,004 549,667
Outlier Median	777,919 582,572	977,353 538,116	775,196 212,434	63,477 126,559	43,983 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	7,984,795 3,662,910	6,182,638 3,730,911	5,356,926 4,081,319	5,400,883 4,643,908	5,125,418 4,389,147
Charity care Median	7,753,453 2,654,636	5,860,840 2,940,659	4,544,138 3,380,215	1,081,762 3,488,738	7,602,966 3,233,405
Uncompensated care (UCC) Median	10,865,880 5,147,790	7,448,000 5,337,617	5,868,418 5,711,082	2,373,621 5,923,418	8,470,145 5,508,107
UCC as a % of operating expenses Median	8.33% 3.24	5.90% 3.12	4.47% 3.21	1.74% 3.3	5.57% 2.86
Total shortfall/UCC Median	18,850,675 9,489,989	13,630,638 9,424,297	11,225,344 10,120,158	7,774,504 11,171,337	13,595,563 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	49,825,455 52,142,039	50,001,342 54,485,252	50,489,340 57,395,589	50,198,711 58,830,919	48,922,418 61,722,907
Salaries as a % of operating expenses Median	38.18 36.68	39.59 36.56	38.43 36.37	36.72 35.93	32.20 35.24
Intern, resident salaries* Median	151,284 2,598,592	321,187 2,686,824	291,283 2,753,773	1,234,173 2,937,156	1,270,492 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	1,715,645 1,449,244	2,197,619 1,475,986	1,553,910 1,563,078	2,054,988 1,721,954	3,831,921 2,991,828
Contract hours, direct-care Median	24,461.65 22,725	31,393.71 23,018.5	22,148.75 24,503.48	35,523.94 25,026.5	46,424.79 33,786
Contract wages, direct-care Median	70.14 64.67	70.00 64.53	70.16 65.06	57.85 68.97	82.54 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.