As of the July, 2022, release via CMS

NORTHWESTERN LAKE FOREST HOSPITAL

CMS id: 140130
1000 WESTMORELAND ROAD, LAKE FOREST IL 60045. County: LAKE
System: NORTHWESTERN MEMORIAL HEALTHCARE AND
CBSA: Chicago-Naperville-Elgin, IL-IN-WI

The 122-bed, acute-care hospital had $-63,410,832 in net service to patients*, with a total profit margin of -4.56284% in fiscal year 2021, the latest year available.
It spent 2.98% of its operating expenses on uncompensated care and reported $19,650,371 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	107 118	102 118	102 119.5	110 118	110 119
Total beds Median	117 162	114 162	114 162	122 162	122 163.5
FTEs Median	1,229.40 788.06	1,200.50 793.42	1,319.24 806.03	1,380.07 787.61	1,404.00 804.34

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	276,165,042 150,932,746	303,705,378 158,950,878	357,473,919 168,696,998	357,455,781 163,454,693	418,369,401 186,589,412
Operating expenses Median	299,561,150 149,311,209	343,309,236 156,110,414	393,931,577 164,890,568	440,106,335 166,516,854	481,780,233 180,120,888
Net income from service 2 patients (NS2P) ? Median	-23,396,108 -964,173	-39,603,858 -643,601.5	-36,457,658 -116,254	-82,650,554 -5,025,862	-63,410,832 -1,284,564
NS2P margin ? Median	-8.47% -0.62	-13.04% -0.29	-10.20% 0.18	-23.12% -5.07	-15.16% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for NORTHWESTERN LAKE FOREST 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	22,016,533 5,089,215	18,796,476 4,572,541	29,018,616 5,268,134	60,127,049 13,092,619	42,387,262 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	1,583,924 299,524	1,384,602 188,688.5	3,431,274 370,813	176,719 309,361.5	2,596,050 375,329
⊳ 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	1,046,698	1,113,107	1,342,342	1,366,238	1,399,234
⊳ 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	81,009
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	5,474,525	0	0	0	0
⊳ Line 21: Rental of vending machines	43,297	16,396	18,024	8,075	520
⊳ Line 22: Rental of hospital space	5,210,535	6,401,415	7,543,830	7,690,722	8,389,690
⊳ Line 23: Gov appropriations ? ⊳ Median	6,820 1,017,693	6,206,680 983,261.5	38,150 1,173,286	27,364 1,987,202	-2,504 1,597,664
⊳ Sum Line 24	8,650,734	3,674,276	16,644,996	50,857,931	29,923,263
Total income ? Median	-1,379,575 6,586,430	-20,807,382 6,767,106	-7,439,042 8,419,950	-22,523,505 8,094,175	-21,023,570 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	-1,379,575 6,043,842	-20,807,382 5,845,112	-7,439,042 7,606,259	-22,523,505 7,283,041	-21,023,570 14,957,241
Net margin Median	-0.46266% 4.62%	-6.45186% 4.42%	-1.92476% 5.16%	-5.39378% 5.2%	-4.56284% 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 NORTHWESTERN LAKE FOREST 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	30,046,933 23,241,334	34,472,655 23,709,545	40,263,198 24,248,380	41,417,231 22,858,541	46,024,702 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	26,790,100 21,577,146	34,472,655 22,041,594	40,263,198 22,722,063	41,417,231 21,570,441	46,024,702 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	3,256,833 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	32,280,929 11,160,864	39,284,680 11,987,345	46,771,442 12,926,866	45,056,087 11,884,480	56,745,316 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	30,308,148 10,918,923	37,143,022 11,706,976	44,760,687 12,615,917	45,056,087 11,458,116	56,745,316 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	1,972,781 1,282,808	2,141,658 1,407,728	2,010,755 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	2,529,183 3,284,314	4,101,148 3,250,551	4,801,510 3,386,837	4,658,841 3,360,806	4,767,935 3,508,953
Disproportionate-share hospital (DSH) Median	0 594,888	204,023 595,761	291,809 577,894	448,432 542,168	385,358 549,667
Outlier Median	1,488,070 582,572	2,185,476 538,116	1,954,765 212,434	1,088,473 126,559	1,248,825 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	22,424,785 3,662,910	22,654,449 3,730,911	20,682,945 4,081,319	23,051,214 4,643,908	19,650,371 4,389,147
Charity care Median	6,521,151 2,654,636	8,623,314 2,940,659	10,132,792 3,380,215	14,032,162 3,488,738	12,290,473 3,233,405
Uncompensated care (UCC) Median	10,701,068 5,147,790	12,461,378 5,337,617	14,783,382 5,711,082	17,943,294 5,923,418	14,374,855 5,508,107
UCC as a % of operating expenses Median	3.57% 3.24	3.63% 3.12	3.75% 3.21	4.08% 3.3	2.98% 2.86
Total shortfall/UCC Median	33,125,853 9,489,989	35,115,827 9,424,297	35,466,327 10,120,158	40,994,508 11,171,337	34,025,226 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	91,065,278 52,142,039	94,679,682 54,485,252	104,251,960 57,395,589	107,708,079 58,830,919	111,445,459 61,722,907
Salaries as a % of operating expenses Median	30.40 36.68	27.58 36.56	26.46 36.37	24.47 35.93	23.13 35.24
Intern, resident salaries* Median	992,892 2,598,592	1,419,170 2,686,824	1,509,547 2,753,773	1,522,355 2,937,156	1,501,110 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	773,332 1,449,244	1,628,585 1,475,986	3,181,341 1,563,078	6,644,169 1,721,954	3,885,362 2,991,828
Contract hours, direct-care Median	10,622.00 22,725	24,226.00 23,018.5	49,257.00 24,503.48	81,183.00 25,026.5	36,509.00 33,786
Contract wages, direct-care Median	72.80 64.67	67.22 64.53	64.59 65.06	81.84 68.97	106.42 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.