As of the July, 2022, release via CMS

MCLAREN NORTHERN MICHIGAN

CMS id: 230105
416 CONNABLE AVENUE, PETOSKEY MI 49770. County: EMMET
System: MCLAREN HEALTH CARE
CBSA: Rural Michigan

The 187-bed, acute-care hospital had $23,057,528 in net service to patients*, with a total profit margin of 16.67926% in fiscal year 2021, the latest year available.
It spent 2.09% 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	129 118	129 118	114 119.5	114 118	108 119
Total beds Median	202 162	202 162	185 162	185 162	187 163.5
FTEs Median	1,177.06 788.06	1,305.54 793.42	1,266.93 806.03	1,224.90 787.61	1,072.22 804.34

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	242,659,241 150,932,746	248,492,650 158,950,878	238,199,681 168,696,998	227,971,938 163,454,693	248,708,988 186,589,412
Operating expenses Median	237,592,649 149,311,209	247,406,661 156,110,414	252,149,974 164,890,568	242,018,438 166,516,854	225,651,460 180,120,888
Net income from service 2 patients (NS2P) ? Median	5,066,592 -964,173	1,085,989 -643,601.5	-13,950,293 -116,254	-14,046,500 -5,025,862	23,057,528 -1,284,564
NS2P margin ? Median	2.09% -0.62	0.44% -0.29	-5.86% 0.18	-6.16% -5.07	9.27% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MCLAREN NORTHERN MICHIGAN 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	28,921,324 5,089,215	34,928,764 4,572,541	38,518,606 5,268,134	53,529,273 13,092,619	22,113,676 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	4,024,601 224,999	722,338 199,009	606,790 206,870.5	845,191 194,343	0 249,496
⊳ Line 7: Investments ? ⊳ Median	907,410 299,524	1,287,347 188,688.5	1,714,152 370,813	1,439,487 309,361.5	7,200,792 375,329
⊳ 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	744,284	817,039	841,788	727,108	0
⊳ 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	782,237	859,099	911,253	911,624	0
⊳ 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	22,462,792	31,242,941	34,444,623	49,605,863	14,912,884
Total income ? Median	33,987,916 6,586,430	36,014,753 6,767,106	24,568,313 8,419,950	39,482,773 8,094,175	45,171,204 15,162,888
Non-operating expenses Median	-6,284,457 146,289.5	20,118,062 164,857	35,579,549 89,880.5	15,269,517 106,761	0 31,473.5
Net income Median	40,272,373 6,043,842	15,896,691 5,845,112	-11,011,236 7,606,259	24,213,256 7,283,041	45,171,204 14,957,241
Net margin Median	14.82889% 4.62%	5.60885% 4.42%	-3.97922% 5.16%	8.60147% 5.2%	16.67926% 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 MCLAREN NORTHERN MICHIGAN 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	65,327,328 23,241,334	62,547,768 23,709,545	58,537,602 24,248,380	52,842,888 22,858,541	49,228,947 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	61,443,820 21,577,146	58,610,389 22,041,594	54,799,083 22,722,063	48,433,184 21,570,441	45,267,326 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	0 1,845,420	0 1,757,392	0 1,738,842	0 1,510,463	0 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	3,883,508 3,535,627	3,937,379 3,746,588	3,738,519 3,782,288	4,409,704 3,865,578	3,961,621 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	37,456,499 11,160,864	37,942,179 11,987,345	40,841,137 12,926,866	34,773,723 11,884,480	32,139,930 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	37,456,499 10,918,923	37,942,179 11,706,976	40,841,137 12,615,917	34,773,723 11,458,116	32,139,930 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	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	0 595,761	0 577,894	285,944 542,168	376,791 549,667
Outlier Median	1,019,324 582,572	775,020 538,116	137,908 212,434	145,130 126,559	134,006 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	3,612,732 3,662,910	2,387,357 3,730,911	3,068,888 4,081,319	3,200,952 4,643,908	0 4,389,147
Charity care Median	0 2,654,636	221,620 2,940,659	188,409 3,380,215	419,829 3,488,738	1,248,510 3,233,405
Uncompensated care (UCC) Median	3,777,273 5,147,790	3,149,395 5,337,617	3,170,071 5,711,082	4,230,405 5,923,418	4,720,694 5,508,107
UCC as a % of operating expenses Median	1.59% 3.24	1.27% 3.12	1.26% 3.21	1.75% 3.3	2.09% 2.86
Total shortfall/UCC Median	7,390,005 9,489,989	5,536,752 9,424,297	6,238,959 10,120,158	7,431,357 11,171,337	4,720,694 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	74,229,116 52,142,039	81,201,041 54,485,252	81,533,269 57,395,589	83,086,847 58,830,919	83,890,616 61,722,907
Salaries as a % of operating expenses Median	30.60 36.68	32.11 36.56	31.60 36.37	33.60 35.93	36.09 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	4,936,476 1,449,244	3,914,482 1,475,986	2,540,569 1,563,078	1,536,135 1,721,954	1,536,135 2,991,828
Contract hours, direct-care Median	64,932.00 22,725	53,556.00 23,018.5	36,375.28 24,503.48	26,330.00 25,026.5	26,330.00 33,786
Contract wages, direct-care Median	76.03 64.67	73.09 64.53	69.84 65.06	58.34 68.97	58.34 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.