As of the July, 2022, release via CMS

WILLIAM BEAUMONT HOSPITAL- ROYAL OAK

CMS id: 230130
3601 WEST 13 MILE ROAD, ROYAL OAK MI 48073. County: OAKLAND
System: BEAUMONT HEALTH
CBSA: Detroit-Warren-Dearborn, MI

The 1,131-bed, acute-care hospital had $-36,482,616 in net service to patients*, with a total profit margin of 2.26040% in fiscal year 2021, the latest year available.
It spent 0.83% of its operating expenses on uncompensated care and reported $24,277,350 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	860 118	860 118	862 119.5	880 118	881 119
Total beds Median	1,089 162	1,089 162	1,098 162	1,127 162	1,131 163.5
FTEs Median	8,187.05 788.06	8,915.58 793.42	8,124.40 806.03	7,118.87 787.61	7,162.91 804.34

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	1,473,306,719 150,932,746	1,556,007,086 158,950,878	1,527,515,075 168,696,998	1,348,771,244 163,454,693	1,475,008,753 186,589,412
Operating expenses Median	1,450,182,389 149,311,209	1,487,248,032 156,110,414	1,464,360,503 164,890,568	1,423,943,761 166,516,854	1,511,491,369 180,120,888
Net income from service 2 patients (NS2P) ? Median	23,124,330 -964,173	68,759,054 -643,601.5	63,154,572 -116,254	-75,172,517 -5,025,862	-36,482,616 -1,284,564
NS2P margin ? Median	1.57% -0.62	4.42% -0.29	4.13% 0.18	-5.57% -5.07	-2.47% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for WILLIAM BEAUMONT HOSPITAL- ROYAL OAK 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	49,271,960 5,089,215	23,188,330 4,572,541	35,817,257 5,268,134	141,967,208 13,092,619	74,887,165 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	-11,767 224,999	-3,109 199,009	0 206,870.5	0 194,343	0 249,496
⊳ Line 7: Investments ? ⊳ Median	893,977 299,524	0 188,688.5	35,817,255 370,813	633,772 309,361.5	0 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	-3,694	-1,883
⊳ Line 10: Purchase discounts	128,514	197,581	0	85,251	78,289
⊳ Line 11: Rebates and refunds of expenses	700	21,315	0	0	0
⊳ Line 12: Parking lot receipts	839,116	0	0	217,149	0
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	8,504,939	8,663,041	0	4,954,407	5,235,964
⊳ 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	112,695	93,441
⊳ Line 17: Revenue from sale of drugs to other than patients	0	0	0	480	0
⊳ Line 18: Revenue from sale of medical records and abstracts	83,730	88,075	0	47,053	45,997
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	793,473	220,073	0	632,791	203,096
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	1,374,860	1,370,766	0	323,199	554,513
⊳ Line 21: Rental of vending machines	134,710	0	0	0	0
⊳ Line 22: Rental of hospital space	3,510,082	0	0	4,378,818	4,240,021
⊳ 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	30,914,675	12,549,483	2	130,585,287	64,437,727
Total income ? Median	72,396,290 6,586,430	91,947,384 6,767,106	98,971,829 8,419,950	66,794,691 8,094,175	38,404,549 15,162,888
Non-operating expenses Median	919,689 146,289.5	682,492 164,857	0 89,880.5	-527,571 106,761	3,370,704 31,473.5
Net income Median	71,476,601 6,043,842	91,264,892 5,845,112	98,971,829 7,606,259	67,322,262 7,283,041	35,033,845 14,957,241
Net margin Median	4.69444% 4.62%	5.77920% 4.42%	6.33082% 5.16%	4.51603% 5.2%	2.26040% 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 WILLIAM BEAUMONT HOSPITAL- ROYAL OAK 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	315,934,080 23,241,334	322,576,056 23,709,545	330,208,973 24,248,380	284,660,881 22,858,541	282,365,053 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	293,463,536 21,577,146	298,790,586 22,041,594	306,756,566 22,722,063	261,241,002 21,570,441	259,517,519 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	3,366,187 1,845,420	3,335,162 1,757,392	2,824,478 1,738,842	2,024,744 1,510,463	2,255,074 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	19,104,357 3,535,627	20,450,308 3,746,588	20,627,929 3,782,288	21,395,135 3,865,578	20,592,460 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	85,741,854 11,160,864	90,147,245 11,987,345	96,650,751 12,926,866	81,775,084 11,884,480	87,580,250 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	85,741,854 10,918,923	90,147,245 11,706,976	96,650,751 12,615,917	81,775,084 11,458,116	87,580,250 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	48,054,749 3,284,314	51,711,853 3,250,551	57,290,259 3,386,837	49,348,926 3,360,806	48,668,561 3,508,953
Disproportionate-share hospital (DSH) Median	5,208,378 594,888	4,998,055 595,761	4,739,093 577,894	4,438,034 542,168	4,923,962 549,667
Outlier Median	13,888,636 582,572	14,705,378 538,116	2,861,130 212,434	1,834,540 126,559	1,826,563 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	32,147,516 3,662,910	16,009,428 3,730,911	14,915,324 4,081,319	12,193,043 4,643,908	24,277,350 4,389,147
Charity care Median	8,506,662 2,654,636	8,321,870 2,940,659	17,470,636 3,380,215	9,974,942 3,488,738	5,607,551 3,233,405
Uncompensated care (UCC) Median	15,884,141 5,147,790	19,660,918 5,337,617	24,933,708 5,711,082	21,646,303 5,923,418	12,488,262 5,508,107
UCC as a % of operating expenses Median	1.10% 3.24	1.32% 3.12	1.70% 3.21	1.52% 3.3	0.83% 2.86
Total shortfall/UCC Median	48,031,657 9,489,989	35,670,346 9,424,297	39,849,032 10,120,158	33,839,346 11,171,337	36,765,612 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	551,689,886 52,142,039	554,798,414 54,485,252	524,884,794 57,395,589	483,865,081 58,830,919	503,932,326 61,722,907
Salaries as a % of operating expenses Median	38.04 36.68	37.30 36.56	35.84 36.37	33.98 35.93	33.34 35.24
Intern, resident salaries* Median	23,679,282 2,598,592	24,911,948 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	33,887,517 1,204,885	34,326,576 1,279,653	35,084,653 1,469,317
Contract adjusted salaries, direct-care Median	6,462,042 1,449,244	4,439,088 1,475,986	38,467,377 1,563,078	8,129,062 1,721,954	45,998,496 2,991,828
Contract hours, direct-care Median	98,309.00 22,725	34,822.33 23,018.5	973,820.00 24,503.48	92,662.00 25,026.5	1,094,238.84 33,786
Contract wages, direct-care Median	65.73 64.67	127.48 64.53	39.50 65.06	87.73 68.97	42.04 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.