As of the July, 2022, release via CMS

NORTHWESTERN MEMORIAL HOSPITAL

CMS id: 140281
251E HURON, CHICAGO IL 60611. County: COOK
System: NORTHWESTERN MEMORIAL HEALTHCARE
CBSA: Chicago-Naperville-Elgin, IL-IN-WI

The 903-bed, acute-care hospital had $-225,553,489 in net service to patients*, with a total profit margin of 7.48907% in fiscal year 2021, the latest year available.
It spent 1.62% 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	nfp	nfp	nfp	nfp	nfp
Acute beds Median	679 118	691 118	678 119.5	673 118	673 119
Total beds Median	900 162	912 162	908 162	903 162	903 163.5
FTEs Median	4,729.49 788.06	4,729.49 793.42	5,817.83 806.03	5,795.10 787.61	6,239.00 804.34

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	1,518,920,932 150,932,746	1,745,967,766 158,950,878	1,835,098,998 168,696,998	1,792,009,307 163,454,693	2,224,223,352 186,589,412
Operating expenses Median	1,708,943,272 149,311,209	1,907,882,728 156,110,414	2,055,527,201 164,890,568	2,232,104,704 166,516,854	2,449,776,841 180,120,888
Net income from service 2 patients (NS2P) ? Median	-190,022,340 -964,173	-161,914,962 -643,601.5	-220,428,203 -116,254	-440,095,397 -5,025,862	-225,553,489 -1,284,564
NS2P margin ? Median	-12.51% -0.62	-9.27% -0.29	-12.01% 0.18	-24.56% -5.07	-10.14% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for NORTHWESTERN MEMORIAL 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	348,086,263 5,089,215	348,040,625 4,572,541	370,041,592 5,268,134	595,602,659 13,092,619	423,871,222 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	0 199,009	0 206,870.5	0 194,343	696,881 249,496
⊳ Line 7: Investments ? ⊳ Median	36,727,861 299,524	4,468,285 188,688.5	1,874,464 370,813	28,997,349 309,361.5	38,157,698 375,329
⊳ 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	10,240,944	10,529,880	10,975,066	10,825,164	10,981,575
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	780,885	265,191	104,938	271,641	213,840
⊳ Line 15: Revenue from rental of living quarters	0	2,082,274	1,860,018	1,417,067	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	151,618,090	160,314,637	233,769,822
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	0	0	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	-20,511	215,715	1,193,815	1,311,245	1,086,981
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	0	83,282	0	0
⊳ Line 21: Rental of vending machines	0	319,279	332,142	315,409	269,578
⊳ Line 22: Rental of hospital space	49,346,463	62,787,614	65,129,956	71,209,474	74,186,833
⊳ Line 23: Gov appropriations ? ⊳ Median	114,385,428 1,017,693	100,033,662 983,261.5	91,499,720 1,173,286	97,162,008 1,987,202	495,617 1,597,664
⊳ Sum Line 24	136,625,193	167,338,725	45,370,101	223,778,665	64,012,397
Total income ? Median	158,063,923 6,586,430	186,125,663 6,767,106	149,613,389 8,419,950	155,507,262 8,094,175	198,317,733 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	0 106,761	-7 31,473.5
Net income Median	158,063,923 6,043,842	186,125,663 5,845,112	149,613,389 7,606,259	155,507,262 7,283,041	198,317,740 14,957,241
Net margin Median	8.46617% 4.62%	8.88849% 4.42%	6.78476% 5.16%	6.51309% 5.2%	7.48907% 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 MEMORIAL 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	234,637,332 23,241,334	248,998,224 23,709,545	281,967,477 24,248,380	267,728,710 22,858,541	296,302,417 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	232,551,378 21,577,146	246,452,196 22,041,594	280,277,733 22,722,063	265,921,523 21,570,441	294,607,096 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	2,085,954 1,845,420	2,546,028 1,757,392	1,689,744 1,738,842	1,807,187 1,510,463	1,695,321 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	95,420,989 11,160,864	104,939,009 11,987,345	115,436,315 12,926,866	99,115,211 11,884,480	118,095,938 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	95,420,989 10,918,923	104,939,009 11,706,976	115,436,315 12,615,917	99,115,211 11,458,116	118,095,938 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	38,600,278 3,284,314	39,361,445 3,250,551	47,524,455 3,386,837	46,429,315 3,360,806	49,510,836 3,508,953
Disproportionate-share hospital (DSH) Median	3,437,601 594,888	3,468,481 595,761	3,794,662 577,894	3,574,740 542,168	3,950,739 549,667
Outlier Median	14,689,801 582,572	17,331,668 538,116	25,382,220 212,434	3,095,892 126,559	4,334,807 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	12,456,534 3,662,910	42,962,921 3,730,911	0 4,081,319	1,824,923 4,643,908	0 4,389,147
Charity care Median	19,310,902 2,654,636	35,242,420 2,940,659	38,653,452 3,380,215	48,360,366 3,488,738	34,504,901 3,233,405
Uncompensated care (UCC) Median	31,100,929 5,147,790	46,410,856 5,337,617	49,491,833 5,711,082	58,028,708 5,923,418	39,582,885 5,508,107
UCC as a % of operating expenses Median	1.82% 3.24	2.43% 3.12	2.41% 3.21	2.60% 3.3	1.62% 2.86
Total shortfall/UCC Median	43,557,463 9,489,989	89,373,777 9,424,297	49,491,833 10,120,158	59,853,631 11,171,337	39,582,885 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	441,920,539 52,142,039	459,111,407 54,485,252	479,370,224 57,395,589	515,809,229 58,830,919	480,635,351 61,722,907
Salaries as a % of operating expenses Median	25.86 36.68	24.06 36.56	23.32 36.37	23.11 35.93	19.62 35.24
Intern, resident salaries* Median	0 2,598,592	31,092,811 2,686,824	32,072,982 2,753,773	33,541,253 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	35,432,919 1,469,317
Contract adjusted salaries, direct-care Median	3,679,659 1,449,244	11,169,792 1,475,986	10,321,054 1,563,078	18,252,700 1,721,954	61,785,740 2,991,828
Contract hours, direct-care Median	45,239.00 22,725	158,331.00 23,018.5	151,698.00 24,503.48	238,449.00 25,026.5	1,564,918.00 33,786
Contract wages, direct-care Median	81.34 64.67	70.55 64.53	68.04 65.06	76.55 68.97	39.48 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.