As of the July, 2022, release via CMS

KERN MEDICAL CENTER

CMS id: 050315
1700 MOUNT VERNON AVENUE, BAKERSFIELD CA 93306. County: KERN
System: --
CBSA: Bakersfield, CA

The 222-bed, acute-care hospital had $-207,663,169 in net service to patients*, with a total profit margin of 6.64264% in fiscal year 2021, the latest year available.
It spent 3.87% of its operating expenses on uncompensated care and reported $4,070,554 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	182 118	182 118	182 119.5	182 118	182 119
Total beds Median	222 162	222 162	222 162	222 162	222 163.5
FTEs Median	1,521.51 788.06	1,666.78 793.42	1,738.21 806.03	1,937.16 787.61	1,956.97 804.34

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	348,904,681 150,932,746	220,814,059 158,950,878	204,741,683 168,696,998	451,430,358 163,454,693	248,055,518 186,589,412
Operating expenses Median	345,083,500 149,311,209	368,800,259 156,110,414	406,418,919 164,890,568	428,897,474 166,516,854	455,718,687 180,120,888
Net income from service 2 patients (NS2P) ? Median	3,821,181 -964,173	-147,986,200 -643,601.5	-201,677,236 -116,254	22,532,884 -5,025,862	-207,663,169 -1,284,564
NS2P margin ? Median	1.10% -0.62	-67.02% -0.29	-98.50% 0.18	4.99% -5.07	-83.72% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for KERN 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	12,686,937 5,089,215	154,203,296 4,572,541	257,042,467 5,268,134	19,660,391 13,092,619	240,088,828 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	527 224,999	0 199,009	0 206,870.5	47,496 194,343	5,415,929 249,496
⊳ Line 7: Investments ? ⊳ Median	812,220 299,524	622,492 188,688.5	402,272 370,813	8,666 309,361.5	0 375,329
⊳ 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	515,056	900,647	693,638	312,482	428,204
⊳ Line 12: Parking lot receipts	7,834	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	881,026	918,592	31,388	979,981	1,231,614
⊳ 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	549	0	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	48,950	0	0	0	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	3,468,760	0	0	2,821,995	2,910,670
⊳ 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	3,188	41,240	8,064	32,366
⊳ Line 23: Gov appropriations ? ⊳ Median	853,758 1,017,693	27,316,884 983,261.5	39,232,029 1,173,286	9,494,572 1,987,202	10,223,023 1,597,664
⊳ Sum Line 24	6,098,806	124,440,944	216,641,900	5,987,135	219,847,022
Total income ? Median	16,508,118 6,586,430	6,217,096 6,767,106	55,365,231 8,419,950	42,193,275 8,094,175	32,425,659 15,162,888
Non-operating expenses Median	5,104,421 146,289.5	40 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	11,403,697 6,043,842	6,217,056 5,845,112	55,365,231 7,606,259	42,193,275 7,283,041	32,425,659 14,957,241
Net margin Median	3.15375% 4.62%	1.65780% 4.42%	11.98942% 5.16%	8.95651% 5.2%	6.64264% 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 KERN 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	22,035,533 23,241,334	22,364,708 23,709,545	20,668,543 24,248,380	18,511,816 22,858,541	20,361,402 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	22,035,533 21,577,146	22,364,708 22,041,594	20,668,543 22,722,063	18,511,816 21,570,441	20,361,402 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	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	4,716,518 11,160,864	5,821,996 11,987,345	6,742,270 12,926,866	5,846,813 11,884,480	8,426,481 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	4,716,518 10,918,923	5,821,996 11,706,976	6,742,270 12,615,917	5,846,813 11,458,116	8,426,481 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	3,139,434 3,284,314	3,348,253 3,250,551	2,950,973 3,386,837	3,016,538 3,360,806	3,477,742 3,508,953
Disproportionate-share hospital (DSH) Median	1,907,452 594,888	1,948,216 595,761	1,662,413 577,894	1,746,183 542,168	1,997,095 549,667
Outlier Median	549,905 582,572	721,031 538,116	783,595 212,434	42,652 126,559	129,536 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	15,415,015 3,662,910	32,072,748 3,730,911	16,727,144 4,081,319	10,839,174 4,643,908	4,070,554 4,389,147
Charity care Median	18,582,357 2,654,636	3,638,707 2,940,659	1,425,459 3,380,215	3,502,558 3,488,738	5,864,469 3,233,405
Uncompensated care (UCC) Median	22,520,330 5,147,790	3,879,686 5,337,617	12,524,251 5,711,082	15,745,539 5,923,418	17,642,415 5,508,107
UCC as a % of operating expenses Median	6.53% 3.24	1.05% 3.12	3.08% 3.21	3.67% 3.3	3.87% 2.86
Total shortfall/UCC Median	37,935,345 9,489,989	35,952,434 9,424,297	29,251,395 10,120,158	26,584,713 11,171,337	21,712,969 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	131,251,494 52,142,039	146,873,868 54,485,252	152,059,936 57,395,589	178,811,350 58,830,919	189,713,426 61,722,907
Salaries as a % of operating expenses Median	38.03 36.68	39.82 36.56	37.41 36.37	41.69 35.93	41.63 35.24
Intern, resident salaries* Median	285,028 2,598,592	300,028 2,686,824	234,575 2,753,773	278,453 2,937,156	280,158 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	11,466,141 1,449,244	14,235,781 1,475,986	15,753,538 1,563,078	14,224,278 1,721,954	21,479,326 2,991,828
Contract hours, direct-care Median	151,860.00 22,725	173,559.00 23,018.5	200,548.00 24,503.48	165,946.00 25,026.5	319,921.60 33,786
Contract wages, direct-care Median	75.50 64.67	82.02 64.53	78.55 65.06	85.72 68.97	67.14 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.