As of the July, 2022, release via CMS

ST JOSEPH MERCY HOSPITAL ANN ARBOR

CMS id: 230156
5301 E HURON RIVER DR, ANN ARBOR MI 48106. County: WASHTENAW
System: --
CBSA: Ann Arbor, MI

The 504-bed, acute-care hospital had $-16,299,073 in net service to patients*, with a total profit margin of 24.54978% in fiscal year 2021, the latest year available.
It spent 1.20% of its operating expenses on uncompensated care and reported $17,407,695 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	383 118	383 118	389 119.5	389 118	389 119
Total beds Median	498 162	498 162	507 162	507 162	504 163.5
FTEs Median	4,159.23 788.06	4,301.97 793.42	4,171.90 806.03	3,986.78 787.61	3,967.26 804.34

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	775,736,116 150,932,746	795,361,702 158,950,878	853,211,763 168,696,998	798,356,235 163,454,693	892,678,730 186,589,412
Operating expenses Median	774,422,830 149,311,209	775,069,613 156,110,414	839,287,676 164,890,568	850,064,098 166,516,854	908,977,803 180,120,888
Net income from service 2 patients (NS2P) ? Median	1,313,286 -964,173	20,292,089 -643,601.5	13,924,087 -116,254	-51,707,863 -5,025,862	-16,299,073 -1,284,564
NS2P margin ? Median	0.17% -0.62	2.55% -0.29	1.63% 0.18	-6.48% -5.07	-1.83% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for ST JOSEPH MERCY HOSPITAL ANN ARBOR 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	109,938,603 5,089,215	90,086,034 4,572,541	96,353,656 5,268,134	107,350,480 13,092,619	312,059,781 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	1,451,182 224,999	1,516,317 199,009	4,769,278 206,870.5	44,401,377 194,343	5,414,427 249,496
⊳ Line 7: Investments ? ⊳ Median	61,863,225 299,524	39,658,551 188,688.5	42,755,831 370,813	15,043,963 309,361.5	188,983,625 375,329
⊳ 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	284,401	387,386	1,138,475
⊳ 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	5,253,662	5,548,919	5,620,782	5,219,200	4,371,861
⊳ 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	7,818,676	8,246,293	9,111,314	8,349,943	8,868,082
⊳ Line 18: Revenue from sale of medical records and abstracts	18,592	13,295	1,098	443	940
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	0	23,925	15,100	20,050
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	0	0	0	0
⊳ Line 21: Rental of vending machines	0	0	0	0	74,229
⊳ Line 22: Rental of hospital space	0	0	3,055,809	3,414,133	2,204,783
⊳ 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	33,533,266	35,102,659	30,731,218	30,518,935	100,983,309
Total income ? Median	111,251,889 6,586,430	110,378,123 6,767,106	110,277,743 8,419,950	55,642,617 8,094,175	295,760,708 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	111,251,889 6,043,842	110,378,123 5,845,112	110,277,743 7,606,259	55,642,617 7,283,041	295,760,708 14,957,241
Net margin Median	12.56126% 4.62%	12.46580% 4.42%	11.61350% 5.16%	6.14356% 5.2%	24.54978% 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 ST JOSEPH MERCY HOSPITAL ANN ARBOR 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	144,759,677 23,241,334	138,431,193 23,709,545	140,113,855 24,248,380	130,964,482 22,858,541	134,674,318 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	139,115,627 21,577,146	132,430,547 22,041,594	134,500,367 22,722,063	125,887,225 21,570,441	129,285,356 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	1,679,735 1,845,420	1,887,574 1,757,392	2,087,760 1,738,842	1,832,551 1,510,463	1,678,140 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	3,964,315 3,535,627	4,113,072 3,746,588	3,525,728 3,782,288	3,244,706 3,865,578	3,710,822 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	60,619,815 11,160,864	64,085,203 11,987,345	65,593,364 12,926,866	54,666,655 11,884,480	60,456,736 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	60,619,815 10,918,923	64,085,203 11,706,976	65,593,364 12,615,917	54,666,655 11,458,116	60,456,736 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	19,630,154 3,284,314	19,265,463 3,250,551	18,966,383 3,386,837	18,538,990 3,360,806	18,778,473 3,508,953
Disproportionate-share hospital (DSH) Median	1,689,263 594,888	1,550,905 595,761	1,669,931 577,894	1,375,586 542,168	1,422,996 549,667
Outlier Median	3,680,351 582,572	4,537,702 538,116	2,509,955 212,434	356,556 126,559	301,184 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	11,319,572 3,662,910	11,908,771 3,730,911	15,609,044 4,081,319	18,421,387 4,643,908	17,407,695 4,389,147
Charity care Median	2,030,337 2,654,636	2,286,598 2,940,659	4,464,169 3,380,215	5,124,192 3,488,738	4,506,180 3,233,405
Uncompensated care (UCC) Median	6,350,664 5,147,790	7,703,460 5,337,617	10,386,485 5,711,082	11,270,826 5,923,418	10,869,309 5,508,107
UCC as a % of operating expenses Median	0.82% 3.24	0.99% 3.12	1.24% 3.21	1.33% 3.3	1.20% 2.86
Total shortfall/UCC Median	17,670,236 9,489,989	19,612,231 9,424,297	25,995,529 10,120,158	29,692,213 11,171,337	28,277,004 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	279,604,323 52,142,039	282,280,838 54,485,252	292,909,389 57,395,589	301,724,223 58,830,919	320,732,649 61,722,907
Salaries as a % of operating expenses Median	36.10 36.68	36.42 36.56	34.90 36.37	35.49 35.93	35.28 35.24
Intern, resident salaries* Median	7,066,591 2,598,592	7,209,466 2,686,824	6,806,374 2,753,773	6,963,220 2,937,156	7,438,462 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	951,994 1,449,244	1,562,135 1,475,986	2,148,687 1,563,078	2,900,081 1,721,954	318,880 2,991,828
Contract hours, direct-care Median	31,410.00 22,725	43,898.00 23,018.5	47,286.00 24,503.48	58,524.00 25,026.5	4,311.00 33,786
Contract wages, direct-care Median	30.31 64.67	35.59 64.53	45.44 65.06	49.55 68.97	73.97 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.