As of the July, 2022, release via CMS

NEWTON MEDICAL CENTER

CMS id: 170103
600 MEDICAL CENTER DRIVE, NEWTON KS 67114. County: HARVEY
System: --
CBSA: Wichita, KS

The 99-bed, acute-care hospital had $-560,851 in net service to patients*, with a total profit margin of 12.70120% in fiscal year 2021, the latest year available.
It spent 2.33% of its operating expenses on uncompensated care and reported $2,407,598 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	68 118	68 118	68 119.5	68 118	70 119
Total beds Median	97 162	97 162	97 162	97 162	99 163.5
FTEs Median	589.94 788.06	604.72 793.42	629.20 806.03	626.45 787.61	627.46 804.34

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	70,900,474 150,932,746	76,622,835 158,950,878	80,917,314 168,696,998	83,162,994 163,454,693	92,314,974 186,589,412
Operating expenses Median	75,958,152 149,311,209	79,666,415 156,110,414	80,992,797 164,890,568	83,064,091 166,516,854	92,875,825 180,120,888
Net income from service 2 patients (NS2P) ? Median	-5,057,678 -964,173	-3,043,580 -643,601.5	-75,483 -116,254	98,903 -5,025,862	-560,851 -1,284,564
NS2P margin ? Median	-7.13% -0.62	-3.97% -0.29	-0.09% 0.18	0.12% -5.07	-0.61% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for NEWTON MEDICAL CENTER 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	3,793,042 5,089,215	3,481,936 4,572,541	4,469,323 5,268,134	4,533,536 13,092,619	14,073,454 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	152,670 224,999	105,306 199,009	69,313 206,870.5	81,959 194,343	64,585 249,496
⊳ Line 7: Investments ? ⊳ Median	940,201 299,524	1,152,665 188,688.5	2,337,185 370,813	1,663,476 309,361.5	5,128,354 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	83,765	96,229	146,529	304,278	231,605
⊳ Line 11: Rebates and refunds of expenses	0	3,697	0	0	400
⊳ Line 12: Parking lot receipts	0	0	0	0	0
⊳ Line 13: Revenue from laundry and linen service	7,229	5,179	5,602	6,323	5,991
⊳ Line 14: Revenue from meals sold to emplyees and guests	553,247	577,469	585,320	547,470	440,741
⊳ Line 15: Revenue from rental of living quarters	0	0	0	0	0
⊳ Line 16: Revenue from sale of medical and surgical supplies	26,735	17,403	14,113	12,594	3,716
⊳ 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	25,401	2,786	-142	351	-702
⊳ 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	28	26	0	0	14
⊳ Line 22: Rental of hospital space	859,235	839,601	818,226	923,341	952,147
⊳ 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	1,144,531	681,575	493,177	993,744	7,246,603
Total income ? Median	-1,264,636 6,586,430	438,356 6,767,106	4,393,840 8,419,950	4,632,439 8,094,175	13,512,603 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	-1,264,636 6,043,842	438,356 5,845,112	4,393,840 7,606,259	4,632,439 7,283,041	13,512,603 14,957,241
Net margin Median	-1.69310% 4.62%	0.54723% 4.42%	5.14582% 5.16%	5.28235% 5.2%	12.70120% 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 NEWTON MEDICAL CENTER 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	13,240,477 23,241,334	15,131,964 23,709,545	16,239,207 24,248,380	14,577,553 22,858,541	17,120,137 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	9,589,876 21,577,146	10,357,097 22,041,594	11,751,054 22,722,063	10,414,928 21,570,441	12,483,199 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	1,602,539 1,845,420	1,636,915 1,757,392	1,336,344 1,738,842	1,054,542 1,510,463	1,487,514 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	2,048,062 3,535,627	3,137,952 3,746,588	3,151,809 3,782,288	3,108,083 3,865,578	3,149,424 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	9,131,216 11,160,864	11,164,582 11,987,345	11,257,439 12,926,866	11,304,768 11,884,480	12,335,655 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	8,218,691 10,918,923	10,126,365 11,706,976	10,199,187 12,615,917	10,167,560 11,458,116	11,287,586 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	912,525 1,282,808	1,038,217 1,407,728	1,058,252 1,341,512	1,137,208 1,407,046	1,048,069 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	70,647 595,761	53,961 577,894	85,311 542,168	68,957 549,667
Outlier Median	695,474 582,572	704,740 538,116	1,046,450 212,434	213,611 126,559	539,734 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	2,012,686 3,662,910	995,050 3,730,911	172,761 4,081,319	1,988,901 4,643,908	2,407,598 4,389,147
Charity care Median	934,865 2,654,636	975,385 2,940,659	958,612 3,380,215	838,979 3,488,738	1,185,057 3,233,405
Uncompensated care (UCC) Median	2,123,009 5,147,790	2,585,497 5,337,617	2,186,128 5,711,082	2,279,818 5,923,418	2,161,227 5,508,107
UCC as a % of operating expenses Median	2.79% 3.24	3.25% 3.12	2.70% 3.21	2.74% 3.3	2.33% 2.86
Total shortfall/UCC Median	4,135,695 9,489,989	3,580,547 9,424,297	2,358,889 10,120,158	4,268,719 11,171,337	4,568,825 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	37,429,223 52,142,039	38,604,471 54,485,252	40,395,541 57,395,589	41,718,048 58,830,919	44,448,676 61,722,907
Salaries as a % of operating expenses Median	49.28 36.68	48.46 36.56	49.88 36.37	50.22 35.93	47.86 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	497,454 1,449,244	314,341 1,475,986	303,332 1,563,078	307,565 1,721,954	711,109 2,991,828
Contract hours, direct-care Median	8,130.00 22,725	3,899.00 23,018.5	3,444.00 24,503.48	4,221.00 25,026.5	7,195.00 33,786
Contract wages, direct-care Median	61.19 64.67	80.62 64.53	88.08 65.06	72.87 68.97	98.83 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.