As of the July, 2022, release via CMS

KENNESTONE HOSPITAL

CMS id: 110035
677 CHURCH STREET, MARIETTA GA 30060. County: COBB
System: WELLSTAR HEALTH SYSTEM
CBSA: Atlanta-Sandy Springs-Alpharetta, GA

The 662-bed, acute-care hospital had $178,804,247 in net service to patients*, with a total profit margin of 25.18580% in fiscal year 2021, the latest year available.
It spent 10.05% of its operating expenses on uncompensated care and reported $18,384,842 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	533 118	533 118	533 119.5	533 118	533 119
Total beds Median	662 162	662 162	662 162	662 162	662 163.5
FTEs Median	3,996.69 788.06	4,215.46 793.42	4,271.20 806.03	4,462.32 787.61	4,393.22 804.34

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	997,366,030 150,932,746	1,063,317,184 158,950,878	1,167,028,230 168,696,998	1,141,889,296 163,454,693	1,221,270,187 186,589,412
Operating expenses Median	822,938,123 149,311,209	859,563,468 156,110,414	931,241,053 164,890,568	971,522,719 166,516,854	1,042,465,940 180,120,888
Net income from service 2 patients (NS2P) ? Median	174,427,907 -964,173	203,753,716 -643,601.5	235,787,177 -116,254	170,366,577 -5,025,862	178,804,247 -1,284,564
NS2P margin ? Median	17.49% -0.62	19.16% -0.29	20.20% 0.18	14.92% -5.07	14.64% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for KENNESTONE HOSPITAL 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	18,374,208 5,089,215	84,996,903 4,572,541	100,116,912 5,268,134	159,650,871 13,092,619	172,831,542 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	-961 299,524	-73 188,688.5	0 370,813	0 309,361.5	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	0	0	0	0	0
⊳ Line 12: Parking lot receipts	2,850,301	2,832,343	2,835,439	2,228,008	1,651,645
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	5,593,440	5,234,358	5,796,446	5,052,758	3,786,107
⊳ 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	7,926,642	12,104,865	12,743,941	13,039,988	13,886,335
⊳ Line 18: Revenue from sale of medical records and abstracts	3,049	712	1,800	2,108	7,822
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	0	0	0	0
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	103,926	109,233	114,624	122,674	102,840
⊳ Line 21: Rental of vending machines	0	0	0	0	0
⊳ Line 22: Rental of hospital space	1,897,811	2,803,141	5,944,957	6,632,761	6,807,554
⊳ 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	--	61,912,324	72,679,705	132,572,574	146,589,239
Total income ? Median	192,802,115 6,586,430	288,750,619 6,767,106	335,904,089 8,419,950	330,017,448 8,094,175	351,635,789 15,162,888
Non-operating expenses Median	-43,018,540 146,289.5	14,871,620 164,857	19,258,161 89,880.5	9,448,170 106,761	520,109 31,473.5
Net income Median	235,820,655 6,043,842	273,878,999 5,845,112	316,645,928 7,606,259	320,569,278 7,283,041	351,115,680 14,957,241
Net margin Median	23.21663% 4.62%	23.85053% 4.42%	24.98892% 5.16%	24.62999% 5.2%	25.18580% 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 KENNESTONE HOSPITAL 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	139,136,440 23,241,334	149,348,376 23,709,545	164,569,213 24,248,380	174,280,921 22,858,541	180,921,515 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	134,683,554 21,577,146	144,794,781 22,041,594	159,595,294 22,722,063	169,406,655 21,570,441	176,529,640 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	4,452,886 3,535,627	4,553,595 3,746,588	4,973,919 3,782,288	4,874,266 3,865,578	4,391,875 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	51,642,011 11,160,864	50,089,881 11,987,345	54,988,232 12,926,866	51,548,291 11,884,480	51,549,791 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	51,642,011 10,918,923	50,089,881 11,706,976	54,988,232 12,615,917	51,548,291 11,458,116	51,549,791 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	1,944,164 3,284,314	5,427,272 3,250,551	10,123,175 3,386,837	12,423,459 3,360,806	16,250,016 3,508,953
Disproportionate-share hospital (DSH) Median	2,112,307 594,888	2,006,065 595,761	1,954,921 577,894	1,951,632 542,168	1,965,136 549,667
Outlier Median	9,363,326 582,572	9,580,770 538,116	10,410,006 212,434	988,652 126,559	984,214 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	0 3,662,910	1,328,547 3,730,911	11,021,365 4,081,319	21,295,809 4,643,908	18,384,842 4,389,147
Charity care Median	65,275,317 2,654,636	65,394,509 2,940,659	76,698,666 3,380,215	80,781,014 3,488,738	84,757,221 3,233,405
Uncompensated care (UCC) Median	81,523,369 5,147,790	83,455,354 5,337,617	94,813,845 5,711,082	98,515,099 5,923,418	104,739,834 5,508,107
UCC as a % of operating expenses Median	9.91% 3.24	9.71% 3.12	10.18% 3.21	10.14% 3.3	10.05% 2.86
Total shortfall/UCC Median	81,523,369 9,489,989	84,783,901 9,424,297	105,835,210 10,120,158	119,810,908 11,171,337	123,124,676 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	261,499,024 52,142,039	269,944,412 54,485,252	294,273,888 57,395,589	314,298,249 58,830,919	333,099,976 61,722,907
Salaries as a % of operating expenses Median	31.78 36.68	31.40 36.56	31.60 36.37	32.35 35.93	31.95 35.24
Intern, resident salaries* Median	2,859,433 2,598,592	5,153,152 2,686,824	9,047,257 2,753,773	12,370,481 2,937,156	11,957,946 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	8,261,023 1,449,244	5,658,210 1,475,986	11,464,248 1,563,078	9,373,832 1,721,954	25,422,520 2,991,828
Contract hours, direct-care Median	120,608.00 22,725	80,317.00 23,018.5	157,921.00 24,503.48	129,458.00 25,026.5	195,541.00 33,786
Contract wages, direct-care Median	68.49 64.67	70.45 64.53	72.59 65.06	72.41 68.97	130.01 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.