As of the July, 2022, release via CMS

MERCY HEALTH MUSKEGON

CMS id: 230066
1700 CLINTON STREET, MUSKEGON MI 49442. County: MUSKEGON
System: TRINITY HEALTH
CBSA: Muskegon, MI

The 348-bed, acute-care hospital had $-59,622,688 in net service to patients*, with a total profit margin of 10.19228% in fiscal year 2021, the latest year available.
It spent 2.04% of its operating expenses on uncompensated care and reported $4,677,592 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	299 118	299 118	287 119.5	241 118	237 119
Total beds Median	380 162	380 162	375 162	329 162	348 163.5
FTEs Median	3,274.51 788.06	3,406.61 793.42	3,557.15 806.03	939.52 787.61	3,158.73 804.34

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	437,981,787 150,932,746	458,689,116 158,950,878	495,231,524 168,696,998	526,251,107 163,454,693	611,147,051 186,589,412
Operating expenses Median	526,829,813 149,311,209	555,276,180 156,110,414	600,684,252 164,890,568	660,707,560 166,516,854	670,769,739 180,120,888
Net income from service 2 patients (NS2P) ? Median	-88,848,026 -964,173	-96,587,064 -643,601.5	-105,452,728 -116,254	-134,456,453 -5,025,862	-59,622,688 -1,284,564
NS2P margin ? Median	-20.29% -0.62	-21.06% -0.29	-21.29% 0.18	-25.55% -5.07	-9.76% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MERCY HEALTH MUSKEGON 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	190,500,040 5,089,215	206,771,416 4,572,541	267,066,957 5,268,134	83,912,606 13,092,619	151,402,128 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	6,260 299,524	14,086 188,688.5	46,957 370,813	0 309,361.5	0 375,329
⊳ 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	1,565,691	1,626,233	1,720,647	1,568,918	1,369,048
⊳ Line 15: Revenue from rental of living quarters	169,453	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	2,094	2,160	3,370	24	-50
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	0	0	0	0
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	454,784	364,919	439,135	0	0
⊳ Line 21: Rental of vending machines	0	0	0	0	0
⊳ Line 22: Rental of hospital space	1,646,321	1,891,778	2,077,683	3,734,682	2,902,203
⊳ 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	186,655,437	202,872,240	262,779,165	78,608,982	147,130,927
Total income ? Median	101,652,014 6,586,430	110,184,352 6,767,106	161,614,229 8,419,950	-50,543,847 8,094,175	91,779,440 15,162,888
Non-operating expenses Median	71,607,127 146,289.5	75,109,020 164,857	95,675,131 89,880.5	474,492 106,761	14,058,257 31,473.5
Net income Median	30,044,887 6,043,842	35,075,332 5,845,112	65,939,098 7,606,259	-51,018,339 7,283,041	77,721,183 14,957,241
Net margin Median	4.78055% 4.62%	5.27084% 4.42%	8.65004% 5.16%	-8.36142% 5.2%	10.19228% 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 MERCY HEALTH MUSKEGON 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	82,560,473 23,241,334	83,736,504 23,709,545	79,433,611 24,248,380	74,143,949 22,858,541	80,180,857 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	77,243,354 21,577,146	78,709,022 22,041,594	74,091,917 22,722,063	69,487,639 21,570,441	75,557,355 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	1,511,925 1,845,420	1,262,097 1,757,392	1,915,883 1,738,842	1,219,090 1,510,463	954,756 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	3,805,194 3,535,627	3,765,385 3,746,588	3,425,811 3,782,288	3,437,220 3,865,578	3,668,746 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	40,365,563 11,160,864	41,650,174 11,987,345	42,432,403 12,926,866	37,045,238 11,884,480	37,050,874 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	40,365,563 10,918,923	41,650,174 11,706,976	42,432,403 12,615,917	37,045,238 11,458,116	37,050,874 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	6,755,342 3,284,314	8,385,418 3,250,551	8,677,977 3,386,837	9,259,431 3,360,806	8,956,133 3,508,953
Disproportionate-share hospital (DSH) Median	1,990,367 594,888	1,971,094 595,761	1,562,113 577,894	1,424,546 542,168	1,521,048 549,667
Outlier Median	1,508,377 582,572	1,499,121 538,116	1,884,959 212,434	698,613 126,559	1,374,445 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	31,493,623 3,662,910	32,814,704 3,730,911	31,106,580 4,081,319	15,418,208 4,643,908	4,677,592 4,389,147
Charity care Median	2,998,142 2,654,636	4,479,106 2,940,659	5,970,020 3,380,215	4,338,676 3,488,738	3,680,185 3,233,405
Uncompensated care (UCC) Median	7,557,893 5,147,790	9,895,509 5,337,617	11,811,601 5,711,082	13,165,957 5,923,418	13,652,683 5,508,107
UCC as a % of operating expenses Median	1.43% 3.24	1.78% 3.12	1.97% 3.21	1.99% 3.3	2.04% 2.86
Total shortfall/UCC Median	39,051,516 9,489,989	42,710,213 9,424,297	42,918,181 10,120,158	28,584,165 11,171,337	18,330,275 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	224,085,291 52,142,039	239,519,814 54,485,252	256,855,230 57,395,589	260,934,280 58,830,919	268,293,466 61,722,907
Salaries as a % of operating expenses Median	41.63 36.68	42.10 36.56	41.75 36.37	39.49 35.93	39.02 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	3,221,726 1,449,244	835,606 1,475,986	791,726 1,563,078	1,885,914 1,721,954	1,885,914 2,991,828
Contract hours, direct-care Median	48,939.00 22,725	10,309.68 23,018.5	9,749.00 24,503.48	31,189.00 25,026.5	31,189.00 33,786
Contract wages, direct-care Median	65.83 64.67	81.05 64.53	81.21 65.06	60.47 68.97	60.47 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.