As of the July, 2022, release via CMS

TORRANCE MEMORIAL MEDICAL CENTER

CMS id: 050351
3330 LOMITA BOULEVARD, TORRANCE CA 90505. County: LOS ANGELES
System: --
CBSA: Los Angeles-Long Beach-Anaheim, CA

The 533-bed, acute-care hospital had $-27,480,341 in net service to patients*, with a total profit margin of 9.72557% in fiscal year 2021, the latest year available.
It spent 1.85% of its operating expenses on uncompensated care and reported $16,099,189 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	181	365	366	365
Ownership	nfp	nfp	nfp	nfp	nfp
Acute beds Median	506 118	391 118	412 119.5	412 118	412 119
Total beds Median	649 162	512 162	533 162	533 162	533 163.5
FTEs Median	2,671.36 788.06	1,554.48 793.42	3,178.58 806.03	3,189.40 787.61	3,101.07 804.34

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	638,624,451 150,932,746	326,886,287 158,950,878	660,017,837 168,696,998	640,272,898 163,454,693	684,091,311 186,589,412
Operating expenses Median	664,749,834 149,311,209	339,467,247 156,110,414	668,288,749 164,890,568	685,898,512 166,516,854	711,571,652 180,120,888
Net income from service 2 patients (NS2P) ? Median	-26,125,383 -964,173	-12,580,960 -643,601.5	-8,270,912 -116,254	-45,625,614 -5,025,862	-27,480,341 -1,284,564
NS2P margin ? Median	-4.09% -0.62	-3.85% -0.29	-1.25% 0.18	-7.13% -5.07	-4.02% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for TORRANCE MEMORIAL 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	60,980,836 5,089,215	17,267,338 4,572,541	45,295,428 5,268,134	69,054,469 13,092,619	104,156,996 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	12,616,205 224,999	10,582,217 199,009	21,288,907 206,870.5	26,931,772 194,343	32,418,351 249,496
⊳ Line 7: Investments ? ⊳ Median	28,068,644 299,524	4,755,359 188,688.5	11,331,027 370,813	7,662,701 309,361.5	63,632,108 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	4,347	9,598	24,189	38,424	11,633
⊳ Line 11: Rebates and refunds of expenses	1,571,715	636,502	2,093,654	2,358,631	4,472,517
⊳ 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	1,068,839	1,659,685
⊳ 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	18,719,925	1,283,662	10,557,651	30,994,102	1,962,702
Total income ? Median	34,855,453 6,586,430	4,686,378 6,767,106	37,024,516 8,419,950	23,428,855 8,094,175	76,676,655 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	0 106,761	14,988 31,473.5
Net income Median	34,855,453 6,043,842	4,686,378 5,845,112	37,024,516 7,606,259	23,428,855 7,283,041	76,661,667 14,957,241
Net margin Median	4.98216% 4.62%	1.36171% 4.42%	5.24937% 5.16%	3.30297% 5.2%	9.72557% 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 TORRANCE MEMORIAL 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	86,189,477 23,241,334	48,060,443 23,709,545	86,959,914 24,248,380	82,381,783 22,858,541	85,860,617 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	83,745,450 21,577,146	46,502,518 22,041,594	83,841,932 22,722,063	78,468,891 21,570,441	82,393,511 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	2,444,027 1,203,033	1,557,925 1,215,295	3,117,982 1,313,657	3,912,892 1,365,298	3,467,106 1,179,746
All outpatient revenue Median Click here to show/hide details	49,950,485 11,160,864	27,371,951 11,987,345	55,490,838 12,926,866	53,166,584 11,884,480	54,199,751 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	40,147,965 10,918,923	22,179,389 11,706,976	44,810,113 12,615,917	40,584,094 11,458,116	42,282,270 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	9,802,520 1,282,808	5,192,562 1,407,728	10,680,725 1,341,512	12,582,490 1,407,046	11,917,481 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	1,458,368 594,888	719,184 595,761	1,003,099 577,894	996,203 542,168	855,524 549,667
Outlier Median	7,965,149 582,572	5,462,710 538,116	7,785,925 212,434	1,948,388 126,559	1,378,365 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	9,857,145 3,662,910	5,458,977 3,730,911	13,789,408 4,081,319	16,791,985 4,643,908	16,099,189 4,389,147
Charity care Median	4,565,684 2,654,636	7,242,197 2,940,659	10,111,316 3,380,215	10,889,998 3,488,738	12,307,018 3,233,405
Uncompensated care (UCC) Median	6,461,897 5,147,790	7,860,647 5,337,617	11,235,935 5,711,082	12,148,197 5,923,418	13,149,866 5,508,107
UCC as a % of operating expenses Median	0.97% 3.24	2.32% 3.12	1.68% 3.21	1.77% 3.3	1.85% 2.86
Total shortfall/UCC Median	16,319,042 9,489,989	13,319,624 9,424,297	25,025,343 10,120,158	28,940,182 11,171,337	29,249,055 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	258,939,579 52,142,039	137,918,778 54,485,252	282,471,070 57,395,589	295,843,537 58,830,919	305,418,895 61,722,907
Salaries as a % of operating expenses Median	40.44 36.68	40.98 36.56	42.74 36.37	43.13 35.93	42.92 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	9,711,329 1,449,244	6,183,950 1,475,986	9,000,596 1,563,078	8,906,416 1,721,954	10,146,622 2,991,828
Contract hours, direct-care Median	139,718.00 22,725	87,413.00 23,018.5	117,050.00 24,503.48	118,251.00 25,026.5	94,756.00 33,786
Contract wages, direct-care Median	69.51 64.67	70.74 64.53	76.90 65.06	75.32 68.97	107.08 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.