As of the July, 2022, release via CMS

ADVOCATE SHERMAN HOSPITAL

CMS id: 140030
1425 NORTH RANDALL ROAD, ELGIN IL 60123. County: KANE
System: ADVOCATE AURORA HEALTH
CBSA: Chicago-Naperville-Elgin, IL-IN-WI

The 255-bed, acute-care hospital had $1,193,500 in net service to patients*, with a total profit margin of 2.20622% in fiscal year 2021, the latest year available.
It spent 4.22% of its operating expenses on uncompensated care and reported $10,335,564 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	nfp	nfp	nfp	nfp	nfp
Acute beds Median	225 118	225 118	225 119.5	225 118	225 119
Total beds Median	255 162	255 162	255 162	255 162	255 163.5
FTEs Median	1,343.00 788.06	1,347.59 793.42	1,316.04 806.03	1,115.00 787.61	1,053.92 804.34

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	308,886,315 150,932,746	325,827,026 158,950,878	322,760,271 168,696,998	303,509,198 163,454,693	337,258,012 186,589,412
Operating expenses Median	292,851,156 149,311,209	307,337,231 156,110,414	316,756,208 164,890,568	332,207,958 166,516,854	336,064,512 180,120,888
Net income from service 2 patients (NS2P) ? Median	16,035,159 -964,173	18,489,795 -643,601.5	6,004,063 -116,254	-28,698,760 -5,025,862	1,193,500 -1,284,564
NS2P margin ? Median	5.19% -0.62	5.67% -0.29	1.86% 0.18	-9.46% -5.07	0.35% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for ADVOCATE SHERMAN 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	5,945,939 5,089,215	6,322,405 4,572,541	5,903,079 5,268,134	32,134,846 13,092,619	6,388,101 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	6,433 224,999	50 199,009	0 206,870.5	0 194,343	0 249,496
⊳ Line 7: Investments ? ⊳ Median	81,194 299,524	68,854 188,688.5	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	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	628,731	645,658	617,895	426,446	497,602
⊳ 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	5,373	6,921	5,314	7,226	6,701
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	133,003	128,763	101,124	130,576	161,277
⊳ 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	0	0
⊳ Line 23: Gov appropriations ? ⊳ Median	828,194 1,017,693	775,391 983,261.5	612,356 1,173,286	0 1,987,202	2,242,584 1,597,664
⊳ Sum Line 24	4,262,276	4,696,768	4,566,390	31,570,598	3,479,937
Total income ? Median	21,981,098 6,586,430	24,812,200 6,767,106	11,907,142 8,419,950	3,436,086 8,094,175	7,581,601 15,162,888
Non-operating expenses Median	48,838 146,289.5	0 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	21,932,260 6,043,842	24,812,200 5,845,112	11,907,142 7,606,259	3,436,086 7,283,041	7,581,601 14,957,241
Net margin Median	6.96633% 4.62%	7.47019% 4.42%	3.62290% 5.16%	1.02373% 5.2%	2.20622% 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 ADVOCATE SHERMAN 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	55,439,874 23,241,334	55,897,317 23,709,545	54,827,057 24,248,380	51,642,768 22,858,541	47,685,262 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	55,439,874 21,577,146	55,897,317 22,041,594	54,827,057 22,722,063	51,642,768 21,570,441	47,685,262 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	30,875,677 11,160,864	34,687,089 11,987,345	37,082,864 12,926,866	29,779,977 11,884,480	32,206,002 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	30,875,677 10,918,923	34,687,089 11,706,976	37,082,864 12,615,917	29,779,977 11,458,116	32,206,002 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	932,494 594,888	753,137 595,761	705,414 577,894	620,295 542,168	527,627 549,667
Outlier Median	1,275,461 582,572	1,098,696 538,116	179,776 212,434	259,867 126,559	187,688 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	4,234,061 3,662,910	8,855,578 3,730,911	5,470,474 4,081,319	10,618,319 4,643,908	10,335,564 4,389,147
Charity care Median	4,335,881 2,654,636	8,314,237 2,940,659	10,877,325 3,380,215	12,036,761 3,488,738	8,803,863 3,233,405
Uncompensated care (UCC) Median	10,871,595 5,147,790	13,154,328 5,337,617	14,950,960 5,711,082	19,524,635 5,923,418	14,184,093 5,508,107
UCC as a % of operating expenses Median	3.71% 3.24	4.28% 3.12	4.72% 3.21	5.88% 3.3	4.22% 2.86
Total shortfall/UCC Median	15,105,656 9,489,989	22,009,906 9,424,297	20,421,434 10,120,158	30,142,954 11,171,337	24,519,657 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	99,945,516 52,142,039	102,002,829 54,485,252	101,066,584 57,395,589	98,758,472 58,830,919	90,920,019 61,722,907
Salaries as a % of operating expenses Median	34.13 36.68	33.19 36.56	31.91 36.37	29.73 35.93	27.05 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	961,377 1,449,244	775,899 1,475,986	435,534 1,563,078	759,623 1,721,954	550,352 2,991,828
Contract hours, direct-care Median	11,229.00 22,725	8,613.84 23,018.5	5,960.00 24,503.48	9,066.62 25,026.5	3,857.81 33,786
Contract wages, direct-care Median	85.62 64.67	90.08 64.53	73.08 65.06	83.78 68.97	142.66 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.