As of the July, 2022, release via CMS

UNIVERSITY HOSPITAL

CMS id: 180067
800 ROSE STREET, LEXINGTON KY 40536. County: FAYETTE
System: UNIVERSITY OF KENTUCKY
CBSA: Lexington-Fayette, KY

The 977-bed, acute-care hospital had $-246,976,472 in net service to patients*, with a total profit margin of 18.79389% in fiscal year 2021, the latest year available.
It spent 1.45% 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	612 118	665 118	677 119.5	672 118	721 119
Total beds Median	883 162	914 162	932 162	927 162	977 163.5
FTEs Median	7,103.57 788.06	7,454.57 793.42	7,890.59 806.03	8,683.76 787.61	9,262.71 804.34

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	1,317,598,811 150,932,746	1,433,168,657 158,950,878	1,513,011,079 168,696,998	1,572,125,159 163,454,693	1,850,556,891 186,589,412
Operating expenses Median	1,538,191,918 149,311,209	1,708,759,650 156,110,414	1,629,296,899 164,890,568	1,838,117,254 166,516,854	2,097,533,363 180,120,888
Net income from service 2 patients (NS2P) ? Median	-220,593,107 -964,173	-275,590,993 -643,601.5	-116,285,820 -116,254	-265,992,095 -5,025,862	-246,976,472 -1,284,564
NS2P margin ? Median	-16.74% -0.62	-19.23% -0.29	-7.69% 0.18	-16.92% -5.07	-13.35% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for UNIVERSITY 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	334,645,107 5,089,215	373,081,993 4,572,541	236,810,319 5,268,134	534,595,579 13,092,619	732,417,950 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	0 299,524	0 188,688.5	28,415,350 370,813	9,598,444 309,361.5	104,532,978 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	0	0	1,609,140	731,521	463,824
⊳ Line 11: Rebates and refunds of expenses	0	0	8,897,047	7,270,845	6,569,205
⊳ 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	0	0	8,966,713	7,350,734	6,009,228
⊳ Line 15: Revenue from rental of living quarters	0	0	2,118	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	4,105,283	4,432,908	4,581,977
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	60,430	32,400	39,595
⊳ 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	4,730,049	4,796,146	4,435,714
⊳ Line 21: Rental of vending machines	0	0	28,848	29,007	26,165
⊳ Line 22: Rental of hospital space	0	0	787,497	861,225	228,200
⊳ Line 23: Gov appropriations ? ⊳ Median	0 1,017,693	0 983,261.5	1,661,236 1,173,286	1,435,288 1,987,202	1,689,164 1,597,664
⊳ Sum Line 24	334,645,107	373,081,993	177,546,608	498,057,061	603,841,900
Total income ? Median	114,052,000 6,586,430	97,491,000 6,767,106	120,524,499 8,419,950	268,603,484 8,094,175	485,441,478 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	114,052,000 6,043,842	97,491,000 5,845,112	120,524,499 7,606,259	268,603,484 7,283,041	485,441,478 14,957,241
Net margin Median	6.90285% 4.62%	5.39742% 4.42%	6.88782% 5.16%	12.74984% 5.2%	18.79389% 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 UNIVERSITY 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	196,163,636 23,241,334	210,938,107 23,709,545	204,019,197 24,248,380	187,773,624 22,858,541	177,266,688 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	195,540,246 21,577,146	210,343,160 22,041,594	203,571,779 22,722,063	187,209,529 21,570,441	176,921,222 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	623,390 1,845,420	594,947 1,757,392	447,418 1,738,842	564,095 1,510,463	345,466 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	58,635,479 11,160,864	61,932,643 11,987,345	67,119,635 12,926,866	63,436,696 11,884,480	65,093,221 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	58,635,479 10,918,923	61,932,643 11,706,976	67,119,635 12,615,917	63,436,696 11,458,116	65,093,221 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	26,631,522 3,284,314	27,127,092 3,250,551	25,980,784 3,386,837	25,065,617 3,360,806	22,778,763 3,508,953
Disproportionate-share hospital (DSH) Median	9,262,318 594,888	9,216,261 595,761	8,852,665 577,894	8,048,897 542,168	7,456,504 549,667
Outlier Median	17,148,476 582,572	22,012,083 538,116	17,402,351 212,434	1,292,476 126,559	1,146,137 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	70,311,016 3,662,910	92,858,694 3,730,911	11,525,136 4,081,319	0 4,643,908	0 4,389,147
Charity care Median	27,370,889 2,654,636	19,293,035 2,940,659	18,639,028 3,380,215	20,799,437 3,488,738	11,794,257 3,233,405
Uncompensated care (UCC) Median	48,315,377 5,147,790	37,672,943 5,337,617	37,238,162 5,711,082	38,613,547 5,923,418	30,473,048 5,508,107
UCC as a % of operating expenses Median	3.14% 3.24	2.20% 3.12	2.29% 3.21	2.10% 3.3	1.45% 2.86
Total shortfall/UCC Median	118,626,393 9,489,989	130,531,637 9,424,297	48,763,298 10,120,158	38,613,547 11,171,337	30,473,048 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	455,423,399 52,142,039	499,422,954 54,485,252	524,458,476 57,395,589	563,020,889 58,830,919	629,948,622 61,722,907
Salaries as a % of operating expenses Median	29.61 36.68	29.23 36.56	32.19 36.37	30.63 35.93	30.03 35.24
Intern, resident salaries* Median	37,172,166 2,598,592	47,099,210 2,686,824	52,523,064 2,753,773	57,162,277 2,937,156	60,842,844 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	14,972,976 1,449,244	7,235,254 1,475,986	8,327,319 1,563,078	16,310,786 1,721,954	54,032,512 2,991,828
Contract hours, direct-care Median	196,376.66 22,725	89,770.00 23,018.5	111,918.00 24,503.48	214,035.00 25,026.5	674,326.00 33,786
Contract wages, direct-care Median	76.25 64.67	80.60 64.53	74.41 65.06	76.21 68.97	80.13 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.