As of the July, 2022, release via CMS

HOAG ORTHOPEDIC INSTITUTE

CMS id: 050769
16250 SAND CANYON AVENUE, IRVINE CA 92618. County: ORANGE
System: --
CBSA: Los Angeles-Long Beach-Anaheim, CA

The 70-bed, acute-care hospital had $40,062,072 in net service to patients*, with a total profit margin of 27.94817% in fiscal year 2021, the latest year available.
It spent 0.41% 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	forprofit	forprofit	forprofit	forprofit	forprofit
Acute beds Median	70 118	70 118	70 119.5	70 118	70 119
Total beds Median	70 162	70 162	70 162	70 162	70 163.5
FTEs Median	274.70 788.06	266.03 793.42	262.38 806.03	259.94 787.61	261.60 804.34

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	127,369,357 150,932,746	124,963,682 158,950,878	133,513,480 168,696,998	129,782,448 163,454,693	143,892,148 186,589,412
Operating expenses Median	89,660,423 149,311,209	97,296,368 156,110,414	98,450,775 164,890,568	94,451,403 166,516,854	103,830,076 180,120,888
Net income from service 2 patients (NS2P) ? Median	37,708,934 -964,173	27,667,314 -643,601.5	35,062,705 -116,254	35,331,045 -5,025,862	40,062,072 -1,284,564
NS2P margin ? Median	29.61% -0.62	22.14% -0.29	26.26% 0.18	27.22% -5.07	27.84% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for HOAG ORTHOPEDIC INSTITUTE 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	2,231,044 5,089,215	738,843 4,572,541	763,889 5,268,134	2,971,028 13,092,619	212,559 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	0 199,009	5,000 206,870.5	0 194,343	0 249,496
⊳ Line 7: Investments ? ⊳ Median	174,041 299,524	578,437 188,688.5	715,054 370,813	151,537 309,361.5	9,455 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	115	76	212	362	68
⊳ Line 11: Rebates and refunds of expenses	71	0	0	11,327	7,447
⊳ Line 12: Parking lot receipts	21	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	64,116	108,964	94,165
⊳ 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	2,056,796	160,330	-20,493	2,698,838	101,424
Total income ? Median	39,939,978 6,586,430	28,406,157 6,767,106	35,826,594 8,419,950	38,302,073 8,094,175	40,274,631 15,162,888
Non-operating expenses Median	0 146,289.5	-1 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	39,939,978 6,043,842	28,406,158 5,845,112	35,826,594 7,606,259	38,302,073 7,283,041	40,274,631 14,957,241
Net margin Median	30.81779% 4.62%	22.59792% 4.42%	26.68104% 5.16%	28.85203% 5.2%	27.94817% 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 HOAG ORTHOPEDIC INSTITUTE 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	32,839,751 23,241,334	30,877,718 23,709,545	32,908,872 24,248,380	22,042,967 22,858,541	18,565,783 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	32,839,751 21,577,146	30,877,718 22,041,594	32,908,872 22,722,063	22,042,967 21,570,441	18,565,783 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	1,241,609 11,160,864	1,669,103 11,987,345	2,736,691 12,926,866	12,773,894 11,884,480	21,502,990 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	1,241,609 10,918,923	1,669,103 11,706,976	2,736,691 12,615,917	12,773,894 11,458,116	21,502,990 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	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	0 594,888	0 595,761	0 577,894	0 542,168	0 549,667
Outlier Median	103,579 582,572	81,067 538,116	60,636 212,434	69,356 126,559	47,227 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	75,936 3,662,910	0 3,730,911	0 4,081,319	113,085 4,643,908	0 4,389,147
Charity care Median	289,144 2,654,636	58,939 2,940,659	283,914 3,380,215	296,936 3,488,738	255,363 3,233,405
Uncompensated care (UCC) Median	289,144 5,147,790	353,129 5,337,617	383,794 5,711,082	546,208 5,923,418	423,083 5,508,107
UCC as a % of operating expenses Median	0.32% 3.24	0.36% 3.12	0.39% 3.21	0.58% 3.3	0.41% 2.86
Total shortfall/UCC Median	365,080 9,489,989	353,129 9,424,297	383,794 10,120,158	659,293 11,171,337	423,083 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	1 52,142,039	1,621,644 54,485,252	1,516,749 57,395,589	10,435,064 58,830,919	29,062,248 61,722,907
Salaries as a % of operating expenses Median	0.00 36.68	1.67 36.56	1.52 36.37	11.04 35.93	27.99 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	24,749,808 1,449,244	0 1,475,986	0 1,563,078	395,930 1,721,954	16,603 2,991,828
Contract hours, direct-care Median	523,125.00 22,725	0.00 23,018.5	0.00 24,503.48	2,697.00 25,026.5	83.00 33,786
Contract wages, direct-care Median	47.31 64.67	0.00 64.53	0.00 65.06	146.80 68.97	200.04 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.