As of the July, 2022, release via CMS

MEMORIAL HOSPITAL MODESTO

CMS id: 050557
1700 COFFEE ROAD, MODESTO CA 95355. County: STANISLAUS
System: SUTTER HEALTH
CBSA: Modesto, CA

The 403-bed, acute-care hospital had $-6,131,202 in net service to patients*, with a total profit margin of 3.98284% in fiscal year 2020, the latest year available.
It spent 2.23% of its operating expenses on uncompensated care and reported $40,888,941 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	245	365	365	366	--
Ownership	nfp	nfp	nfp	nfp	--
Acute beds Median	376 118	372 118	372 119.5	356 118	-- 119
Total beds Median	423 162	419 162	419 162	403 162	-- 163.5
FTEs Median	1,201.00 788.06	1,752.48 793.42	1,821.13 806.03	1,924.29 787.61	-- 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	446,711,843 150,932,746	611,035,687 158,950,878	649,303,699 168,696,998	639,182,271 163,454,693	-- 186,589,412
Operating expenses Median	369,733,385 149,311,209	570,762,854 156,110,414	607,605,648 164,890,568	645,313,473 166,516,854	-- 180,120,888
Net income from service 2 patients (NS2P) ? Median	76,978,458 -964,173	40,272,833 -643,601.5	41,698,051 -116,254	-6,131,202 -5,025,862	-- -1,284,564
NS2P margin ? Median	17.23% -0.62	6.59% -0.29	6.42% 0.18	-0.96% -5.07	--% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MEMORIAL HOSPITAL MODESTO 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	5,209,057 5,089,215	12,164,853 4,572,541	11,345,522 5,268,134	32,899,147 13,092,619	-- 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	82,576 224,999	137,655 199,009	554,233 206,870.5	1,061,553 194,343	-- 249,496
⊳ Line 7: Investments ? ⊳ Median	-2,480,924 299,524	603,766 188,688.5	-125,023 370,813	118,586 309,361.5	-- 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	175	45	7,830	3,276	--
⊳ Line 11: Rebates and refunds of expenses	107	266	9,825	127	--
⊳ Line 12: Parking lot receipts	0	0	0	0	--
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	--
⊳ Line 14: Revenue from meals sold to emplyees and guests	1,231,647	1,882,952	235,860	269,259	--
⊳ Line 15: Revenue from rental of living quarters	0	0	0	0	--
⊳ Line 16: Revenue from sale of medical and surgical supplies	0	0	0	0	--
⊳ Line 17: Revenue from sale of drugs to other than patients	4,022,101	5,452,422	4,978,740	4,975,514	--
⊳ Line 18: Revenue from sale of medical records and abstracts	3,638	8,032	4,895	5,180	--
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	0	0	0	--
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	0	1,750,615	1,332,558	--
⊳ Line 21: Rental of vending machines	7,207	10,322	12,805	7,374	--
⊳ Line 22: Rental of hospital space	406,239	766,613	1,256,621	1,461,373	--
⊳ Line 23: Gov appropriations ? ⊳ Median	0 1,017,693	0 983,261.5	0 1,173,286	0 1,987,202	-- 1,597,664
⊳ Sum Line 24	1,936,291	3,302,780	2,659,121	23,664,347	--
Total income ? Median	82,187,515 6,586,430	52,437,686 6,767,106	53,043,573 8,419,950	26,767,945 8,094,175	-- 15,162,888
Non-operating expenses Median	27,438,304 146,289.5	0 164,857	0 89,880.5	0 106,761	-- 31,473.5
Net income Median	54,749,211 6,043,842	52,437,686 5,845,112	53,043,573 7,606,259	26,767,945 7,283,041	-- 14,957,241
Net margin Median	12.11478% 4.62%	8.41426% 4.42%	8.02901% 5.16%	3.98284% 5.2%	--% 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 MEMORIAL HOSPITAL MODESTO 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	54,607,281 23,241,334	83,943,214 23,709,545	94,749,483 24,248,380	89,856,128 22,858,541	-- 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	54,607,281 21,577,146	83,943,214 22,041,594	94,749,483 22,722,063	89,856,128 21,570,441	-- 22,140,684
⊳ Swingbeds ⊳ Median	0 --	0 --	0 --	0 --	-- --
⊳ Tax Equity and Fiscal Responsibility Act payments (TEFRA) ⊳ Median	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	-- 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	0 3,535,627	0 3,746,588	0 3,782,288	0 3,865,578	-- 3,983,889
⊳ Long-term care hospital (LTCH) ⊳ Median	0 --	0 --	0 --	0 --	-- --
⊳ Critical-access hospitals ⊳ Median	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	-- 1,179,746
All outpatient revenue Median Click here to show/hide details	24,610,417 11,160,864	42,547,159 11,987,345	47,036,767 12,926,866	43,259,660 11,884,480	-- 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	24,610,417 10,918,923	42,547,159 11,706,976	47,036,767 12,615,917	43,259,660 11,458,116	-- 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	0 1,282,808	0 1,407,728	0 1,341,512	0 1,407,046	-- 1,476,867
⊳ Community mental health clinics (CMHC) ⊳ Median	0 --	0 --	0 --	0 --	-- --
⊳ Rural health clinics ⊳ Median	0 618,038	0 697,279	0 690,232	0 684,010	-- 670,558
⊳ Other federally qualified health clinics ⊳ Median	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	-- 3,508,953
Disproportionate-share hospital (DSH) Median	2,409,661 594,888	3,263,559 595,761	3,498,511 577,894	3,500,989 542,168	-- 549,667
Outlier Median	2,428,682 582,572	3,793,993 538,116	926,329 212,434	490,298 126,559	-- 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	361,142 3,662,910	14,466,047 3,730,911	11,539,971 4,081,319	40,888,941 4,643,908	-- 4,389,147
Charity care Median	4,193,786 2,654,636	6,906,424 2,940,659	7,468,108 3,380,215	10,980,117 3,488,738	-- 3,233,405
Uncompensated care (UCC) Median	5,594,736 5,147,790	9,991,779 5,337,617	10,798,649 5,711,082	14,377,925 5,923,418	-- 5,508,107
UCC as a % of operating expenses Median	1.51% 3.24	1.75% 3.12	1.78% 3.21	2.23% 3.3	--% 2.86
Total shortfall/UCC Median	5,955,878 9,489,989	24,457,826 9,424,297	22,338,620 10,120,158	55,266,866 11,171,337	-- 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	125,617,393 52,142,039	193,995,272 54,485,252	210,606,044 57,395,589	225,881,867 58,830,919	-- 61,722,907
Salaries as a % of operating expenses Median	33.98 36.68	33.99 36.56	34.66 36.37	35.00 35.93	-- 35.24
Intern, resident salaries* Median	0 2,598,592	0 2,686,824	0 2,753,773	0 2,937,156	-- 2,909,848
Contract intern, resident salaries* Median	0 1,251,927	0 1,186,494	0 1,204,885	0 1,279,653	-- 1,469,317
Contract adjusted salaries, direct-care Median	5,942,498 1,449,244	0 1,475,986	0 1,563,078	9,357,965 1,721,954	-- 2,991,828
Contract hours, direct-care Median	70,130.96 22,725	0.00 23,018.5	0.00 24,503.48	102,049.97 25,026.5	-- 33,786
Contract wages, direct-care Median	84.73 64.67	0.00 64.53	0.00 65.06	91.70 68.97	-- 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.