As of the July, 2022, release via CMS

CHELSEA COMMUNITY HOSPITAL

CMS id: 230259
775 SOUTH MAIN STREET, CHELSEA MI 48118. County: WASHTENAW
System: ST JOSEPH MERCY HEALTH SYSTEM
CBSA: Ann Arbor, MI

The 133-bed, acute-care hospital had $-8,057,659 in net service to patients*, with a total profit margin of 9.43396% in fiscal year 2021, the latest year available.
It spent 0.77% of its operating expenses on uncompensated care and reported $3,117,837 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	91 118	91 118	91 119.5	91 118	77 119
Total beds Median	133 162	133 162	133 162	133 162	133 163.5
FTEs Median	804.00 788.06	868.48 793.42	861.40 806.03	768.62 787.61	774.06 804.34

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	146,372,491 150,932,746	156,592,652 158,950,878	160,863,594 168,696,998	146,086,736 163,454,693	168,409,958 186,589,412
Operating expenses Median	152,817,863 149,311,209	158,788,898 156,110,414	172,542,493 164,890,568	173,384,833 166,516,854	176,467,617 180,120,888
Net income from service 2 patients (NS2P) ? Median	-6,445,372 -964,173	-2,196,246 -643,601.5	-11,678,899 -116,254	-27,298,097 -5,025,862	-8,057,659 -1,284,564
NS2P margin ? Median	-4.40% -0.62	-1.40% -0.29	-7.26% 0.18	-18.69% -5.07	-4.78% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for CHELSEA COMMUNITY HOSPITAL 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	15,048,800 5,089,215	11,723,184 4,572,541	13,985,754 5,268,134	17,549,142 13,092,619	26,439,698 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	527,144 224,999	576,575 199,009	672,810 206,870.5	4,213,264 194,343	704,164 249,496
⊳ Line 7: Investments ? ⊳ Median	6,940,828 299,524	3,954,462 188,688.5	1,602,976 370,813	333,224 309,361.5	6,607,104 375,329
⊳ 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	1,194,913	1,805,047	890,023
⊳ 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	0	0	729,985	603,786	553,375
⊳ 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	2,617,609	2,428,589	2,395,217
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	31,456	7,290	195
⊳ 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	5,769
⊳ Line 22: Rental of hospital space	0	0	66,779	65,045	113,755
⊳ 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	7,580,828	7,192,147	7,069,226	8,093,037	15,170,096
Total income ? Median	8,603,428 6,586,430	9,526,938 6,767,106	2,306,855 8,419,950	-9,748,955 8,094,175	18,382,039 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	8,603,428 6,043,842	9,526,938 5,845,112	2,306,855 7,606,259	-9,748,955 7,283,041	18,382,039 14,957,241
Net margin Median	5.32980% 4.62%	5.66016% 4.42%	1.31934% 5.16%	-5.95771% 5.2%	9.43396% 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 CHELSEA COMMUNITY HOSPITAL 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	14,004,366 23,241,334	15,046,136 23,709,545	14,039,324 24,248,380	12,435,713 22,858,541	14,961,449 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	11,950,990 21,577,146	13,126,503 22,041,594	12,330,448 22,722,063	10,757,062 21,570,441	10,188,103 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	1,598,709 1,845,420	1,291,826 1,757,392	1,240,073 1,738,842	1,153,887 1,510,463	1,268,523 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	454,667 3,535,627	627,807 3,746,588	468,803 3,782,288	524,764 3,865,578	3,504,823 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	14,861,921 11,160,864	16,258,543 11,987,345	18,319,115 12,926,866	17,514,293 11,884,480	20,426,371 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	14,861,921 10,918,923	16,258,543 11,706,976	18,319,115 12,615,917	17,514,293 11,458,116	20,426,371 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	0 542,168	0 549,667
Outlier Median	184,027 582,572	146,789 538,116	25,911 212,434	119,901 126,559	1,540,853 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	2,463,985 3,662,910	3,313,346 3,730,911	3,088,669 4,081,319	3,868,146 4,643,908	3,117,837 4,389,147
Charity care Median	445,867 2,654,636	828,535 2,940,659	613,807 3,380,215	1,058,686 3,488,738	419,057 3,233,405
Uncompensated care (UCC) Median	1,223,840 5,147,790	1,653,369 5,337,617	1,419,208 5,711,082	1,946,017 5,923,418	1,355,003 5,508,107
UCC as a % of operating expenses Median	0.80% 3.24	1.04% 3.12	0.82% 3.21	1.12% 3.3	0.77% 2.86
Total shortfall/UCC Median	3,687,825 9,489,989	4,966,715 9,424,297	4,507,877 10,120,158	5,814,163 11,171,337	4,472,840 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	61,313,053 52,142,039	64,426,098 54,485,252	69,690,996 57,395,589	66,014,946 58,830,919	68,135,843 61,722,907
Salaries as a % of operating expenses Median	40.89 36.68	40.57 36.56	40.39 36.37	38.07 35.93	38.61 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	19,443 1,449,244	145,773 1,475,986	68,654 1,563,078	115,917 1,721,954	87,829 2,991,828
Contract hours, direct-care Median	415.50 22,725	2,309.00 23,018.5	1,108.00 24,503.48	1,966.00 25,026.5	1,807.00 33,786
Contract wages, direct-care Median	46.79 64.67	63.13 64.53	61.96 65.06	58.96 68.97	48.60 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.