As of the July, 2022, release via CMS

NORTH SHORE MEDICAL CENTER

CMS id: 220035
81 HIGHLAND AVENUE, SALEM MA 1970. County: ESSEX
System: MASS GENERAL BRIGHAM INC
CBSA: Boston-Cambridge-Newton, MA-NH

The 362-bed, acute-care hospital had $-14,025,689 in net service to patients*, with a total profit margin of -34.71826% in fiscal year 2021, the latest year available.
It spent 2.29% of its operating expenses on uncompensated care and reported $24,373,238 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	282 118	272 118	272 119.5	252 118	252 119
Total beds Median	368 162	338 162	350 162	362 162	362 163.5
FTEs Median	2,496.24 788.06	2,344.78 793.42	2,315.23 806.03	2,360.11 787.61	2,378.26 804.34

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	407,191,421 150,932,746	416,036,580 158,950,878	414,752,114 168,696,998	430,883,429 163,454,693	490,943,388 186,589,412
Operating expenses Median	470,168,000 149,311,209	453,875,292 156,110,414	459,688,161 164,890,568	474,961,811 166,516,854	504,969,077 180,120,888
Net income from service 2 patients (NS2P) ? Median	-62,976,579 -964,173	-37,838,712 -643,601.5	-44,936,047 -116,254	-44,078,382 -5,025,862	-14,025,689 -1,284,564
NS2P margin ? Median	-15.47% -0.62	-9.10% -0.29	-10.83% 0.18	-10.23% -5.07	-2.86% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for NORTH SHORE 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	6,497,000 5,089,215	5,304,712 4,572,541	26,923,000 5,268,134	692,841,546 13,092,619	-116,109,961 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	0 199,009	418,000 206,870.5	0 194,343	0 249,496
⊳ Line 7: Investments ? ⊳ Median	392,000 299,524	355,433 188,688.5	348,000 370,813	491,925 309,361.5	45,874 375,329
⊳ 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	0	16,664	0	448	40
⊳ 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	0
⊳ 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	1,348,000	501,263	401,000	468,018	285,199
⊳ 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	4,757,000	4,431,352	25,756,000	691,881,155	-116,441,074
Total income ? Median	-56,479,579 6,586,430	-32,534,000 6,767,106	-18,013,047 8,419,950	648,763,164 8,094,175	-130,135,650 15,162,888
Non-operating expenses Median	1,482,421 146,289.5	0 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	-57,962,000 6,043,842	-32,534,000 5,845,112	-18,013,047 7,606,259	648,763,164 7,283,041	-130,135,650 14,957,241
Net margin Median	-14.01103% 4.62%	-7.72153% 4.42%	-4.07835% 5.16%	57.73327% 5.2%	-34.71826% 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 NORTH SHORE 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	82,408,217 23,241,334	89,264,464 23,709,545	91,620,504 24,248,380	90,197,022 22,858,541	94,611,469 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	75,123,237 21,577,146	83,014,716 22,041,594	85,620,350 22,722,063	81,033,559 21,570,441	86,037,906 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	7,284,980 1,845,420	6,249,748 1,757,392	6,000,154 1,738,842	9,163,463 1,510,463	8,573,563 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	32,612,912 11,160,864	34,520,985 11,987,345	38,197,028 12,926,866	32,942,408 11,884,480	38,520,708 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	32,612,912 10,918,923	34,520,985 11,706,976	38,197,028 12,615,917	32,942,408 11,458,116	38,520,708 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	4,360,532 3,284,314	4,558,585 3,250,551	4,733,277 3,386,837	4,540,322 3,360,806	4,890,334 3,508,953
Disproportionate-share hospital (DSH) Median	2,603,695 594,888	2,955,432 595,761	2,966,387 577,894	2,946,623 542,168	2,748,233 549,667
Outlier Median	2,330,163 582,572	1,563,819 538,116	416,622 212,434	561,693 126,559	459,246 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	22,958,458 3,662,910	18,940,369 3,730,911	21,091,496 4,081,319	28,553,634 4,643,908	24,373,238 4,389,147
Charity care Median	6,733,261 2,654,636	7,340,441 2,940,659	5,916,627 3,380,215	7,927,910 3,488,738	6,391,404 3,233,405
Uncompensated care (UCC) Median	12,660,101 5,147,790	12,477,381 5,337,617	12,358,840 5,711,082	14,071,581 5,923,418	11,575,901 5,508,107
UCC as a % of operating expenses Median	2.69% 3.24	2.75% 3.12	2.69% 3.21	2.96% 3.3	2.29% 2.86
Total shortfall/UCC Median	35,618,559 9,489,989	31,417,750 9,424,297	33,450,336 10,120,158	42,625,215 11,171,337	35,949,139 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	185,974,487 52,142,039	176,982,143 54,485,252	178,005,876 57,395,589	183,667,220 58,830,919	190,115,084 61,722,907
Salaries as a % of operating expenses Median	39.55 36.68	38.99 36.56	38.86 36.37	38.79 35.93	37.75 35.24
Intern, resident salaries* Median	2,190,899 2,598,592	2,204,172 2,686,824	2,296,574 2,753,773	2,417,398 2,937,156	2,803,979 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	13,175,026 1,449,244	7,685,173 1,475,986	5,913,038 1,563,078	10,494,066 1,721,954	16,776,917 2,991,828
Contract hours, direct-care Median	144,323.00 22,725	85,202.87 23,018.5	68,757.00 24,503.48	104,252.00 25,026.5	149,294.00 33,786
Contract wages, direct-care Median	91.29 64.67	90.20 64.53	86.00 65.06	100.66 68.97	112.38 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.