As of the July, 2022, release via CMS

BEAUMONT HOSPITAL- FARMINGTON HILLS

CMS id: 230151
28050 GRAND RIVER, FARMINGTON HHILLS MI 48336. County: OAKLAND
System: BEAUMONT HEALTH
CBSA: Detroit-Warren-Dearborn, MI

The 267-bed, acute-care hospital had $28,678,964 in net service to patients*, with a total profit margin of 2.16494% in fiscal year 2021, the latest year available.
It spent 1.32% 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	232 118	232 118	232 119.5	206 118	206 119
Total beds Median	301 162	301 162	301 162	267 162	267 163.5
FTEs Median	2,299.11 788.06	2,052.76 793.42	1,801.82 806.03	1,565.79 787.61	1,648.52 804.34

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	388,464,990 150,932,746	410,578,819 158,950,878	410,934,102 168,696,998	387,882,995 163,454,693	412,744,202 186,589,412
Operating expenses Median	380,034,165 149,311,209	363,573,861 156,110,414	383,590,193 164,890,568	368,180,981 166,516,854	384,065,238 180,120,888
Net income from service 2 patients (NS2P) ? Median	8,430,825 -964,173	47,004,958 -643,601.5	27,343,909 -116,254	19,702,014 -5,025,862	28,678,964 -1,284,564
NS2P margin ? Median	2.17% -0.62	11.45% -0.29	6.65% 0.18	5.08% -5.07	6.95% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for BEAUMONT HOSPITAL- FARMINGTON HILLS 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	9,485,366 5,089,215	7,223,243 4,572,541	11,313,166 5,268,134	36,016,757 13,092,619	17,485,828 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	0 199,009	0 206,870.5	500 194,343	0 249,496
⊳ Line 7: Investments ? ⊳ Median	4,440 299,524	11,825 188,688.5	16,751 370,813	1,200,000 309,361.5	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	16,369	15,868	17,809	21,832	17,023
⊳ Line 11: Rebates and refunds of expenses	0	3,000	20	0	0
⊳ Line 12: Parking lot receipts	49,180	57,600	54,383	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	16	16	417,089	0	0
⊳ Line 15: Revenue from rental of living quarters	0	0	0	0	0
⊳ Line 16: Revenue from sale of medical and surgical supplies	2,723	2,945	2,060	840	1,073
⊳ Line 17: Revenue from sale of drugs to other than patients	2,920,082	2,819,795	0	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	205,840	118,716	818	162	1,319
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	6,759	14,073	-366	347,174	466,421
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	467,381	412,874	375,751	945,663	1,202,408
⊳ Line 21: Rental of vending machines	0	0	0	19,638	37,740
⊳ Line 22: Rental of hospital space	731,906	478,171	595,198	1,164	1,164
⊳ 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	5,080,670	3,288,360	9,833,653	33,479,784	15,758,680
Total income ? Median	17,916,191 6,586,430	54,228,201 6,767,106	38,657,075 8,419,950	55,718,771 8,094,175	46,164,792 15,162,888
Non-operating expenses Median	-21,834,733 146,289.5	50,319,318 164,857	-29,183,654 89,880.5	26,955,370 106,761	36,850,590 31,473.5
Net income Median	39,750,924 6,043,842	3,908,883 5,845,112	67,840,729 7,606,259	28,763,401 7,283,041	9,314,202 14,957,241
Net margin Median	9.98892% 4.62%	0.93558% 4.42%	16.06659% 5.16%	6.78543% 5.2%	2.16494% 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 BEAUMONT HOSPITAL- FARMINGTON HILLS 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	83,900,681 23,241,334	80,611,068 23,709,545	80,606,131 24,248,380	73,853,747 22,858,541	73,440,337 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	73,436,404 21,577,146	71,889,833 22,041,594	72,962,965 22,722,063	67,408,284 21,570,441	65,075,824 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	5,896,150 1,845,420	5,546,476 1,757,392	4,789,177 1,738,842	3,849,883 1,510,463	4,212,523 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	4,568,127 3,535,627	3,174,759 3,746,588	2,853,989 3,782,288	2,595,580 3,865,578	4,151,990 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	20,919,099 11,160,864	20,829,279 11,987,345	21,997,443 12,926,866	30,306,743 11,884,480	39,801,732 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	20,919,099 10,918,923	20,829,279 11,706,976	21,997,443 12,615,917	30,306,743 11,458,116	39,801,732 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	20,606,864 3,284,314	20,671,034 3,250,551	20,578,220 3,386,837	19,318,096 3,360,806	19,479,125 3,508,953
Disproportionate-share hospital (DSH) Median	1,415,237 594,888	1,368,104 595,761	1,361,507 577,894	1,313,839 542,168	1,292,783 549,667
Outlier Median	3,741,294 582,572	881,082 538,116	356,722 212,434	343,205 126,559	340,540 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	4,409,736 3,662,910	0 3,730,911	1,825,199 4,081,319	0 4,643,908	0 4,389,147
Charity care Median	2,694,040 2,654,636	2,811,841 2,940,659	5,927,592 3,380,215	2,572,689 3,488,738	1,737,468 3,233,405
Uncompensated care (UCC) Median	4,484,863 5,147,790	6,691,513 5,337,617	8,928,770 5,711,082	6,525,056 5,923,418	5,083,306 5,508,107
UCC as a % of operating expenses Median	1.18% 3.24	1.84% 3.12	2.33% 3.21	1.77% 3.3	1.32% 2.86
Total shortfall/UCC Median	8,894,599 9,489,989	6,691,513 9,424,297	10,753,969 10,120,158	6,525,056 11,171,337	5,083,306 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	148,978,043 52,142,039	141,382,314 54,485,252	123,201,412 57,395,589	106,781,681 58,830,919	117,469,348 61,722,907
Salaries as a % of operating expenses Median	41.81 36.68	38.89 36.56	32.12 36.37	29.00 35.93	30.59 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	13,342,795 1,204,885	12,997,851 1,279,653	13,254,928 1,469,317
Contract adjusted salaries, direct-care Median	797,691 1,449,244	253,785 1,475,986	13,727,506 1,563,078	1,403,672 1,721,954	15,146,602 2,991,828
Contract hours, direct-care Median	13,219.00 22,725	2,969.00 23,018.5	401,867.00 24,503.48	18,936.00 25,026.5	403,443.52 33,786
Contract wages, direct-care Median	60.34 64.67	85.48 64.53	34.16 65.06	74.13 68.97	37.54 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.