As of the July, 2022, release via CMS

MCHS - SOUTHWEST MINNESOTA REGION

CMS id: 240093
1025 MARSH STREET, MANKATO MN 56001. County: BLUE EARTH
System: MCHS - MANKATO
CBSA: Mankato, MN

The 161-bed, acute-care hospital had $-12,932,223 in net service to patients*, with a total profit margin of 0.87767% in fiscal year 2021, the latest year available.
It spent 1.24% of its operating expenses on uncompensated care and reported $18,075,275 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	134 118	138 118	126 119.5	132 118	132 119
Total beds Median	154 162	167 162	155 162	161 162	161 163.5
FTEs Median	1,541.96 788.06	1,505.85 793.42	1,653.98 806.03	1,570.67 787.61	1,645.38 804.34

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	354,634,247 150,932,746	401,507,926 158,950,878	439,927,450 168,696,998	424,292,640 163,454,693	487,976,719 186,589,412
Operating expenses Median	372,392,814 149,311,209	402,050,309 156,110,414	450,217,085 164,890,568	462,745,541 166,516,854	500,908,942 180,120,888
Net income from service 2 patients (NS2P) ? Median	-17,758,567 -964,173	-542,383 -643,601.5	-10,289,635 -116,254	-38,452,901 -5,025,862	-12,932,223 -1,284,564
NS2P margin ? Median	-5.01% -0.62	-0.14% -0.29	-2.34% 0.18	-9.06% -5.07	-2.65% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MCHS - SOUTHWEST MINNESOTA REGION 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	18,413,879 5,089,215	19,282,748 4,572,541	16,239,372 5,268,134	23,732,182 13,092,619	17,367,471 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	1,887,664 224,999	1,520,359 199,009	1,412,198 206,870.5	1,924,242 194,343	1,567,211 249,496
⊳ Line 7: Investments ? ⊳ Median	3,234,097 299,524	4,402,739 188,688.5	1,329,191 370,813	81,825 309,361.5	175,421 375,329
⊳ 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	0	0	0	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	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	0	0	0	0	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	13,292,118	13,359,650	13,497,983	21,726,115	15,624,839
Total income ? Median	655,312 6,586,430	18,740,365 6,767,106	5,949,737 8,419,950	-14,720,719 8,094,175	4,435,248 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	655,312 6,043,842	18,740,365 5,845,112	5,949,737 7,606,259	-14,720,719 7,283,041	4,435,248 14,957,241
Net margin Median	0.17566% 4.62%	4.45361% 4.42%	1.30429% 5.16%	-3.28569% 5.2%	0.87767% 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 MCHS - SOUTHWEST MINNESOTA REGION 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	47,578,482 23,241,334	50,853,619 23,709,545	44,495,468 24,248,380	40,309,410 22,858,541	38,754,602 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	47,578,482 21,577,146	50,853,619 22,041,594	44,495,468 22,722,063	40,309,410 21,570,441	38,754,602 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	0 3,535,627	0 3,746,588	0 3,782,288	0 3,865,578	0 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	26,309,866 11,160,864	29,087,120 11,987,345	32,010,195 12,926,866	36,718,074 11,884,480	43,415,731 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	26,309,866 10,918,923	29,087,120 11,706,976	32,010,195 12,615,917	36,718,074 11,458,116	43,415,731 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	1,436,004 3,284,314	1,473,237 3,250,551	1,516,815 3,386,837	1,425,542 3,360,806	1,428,782 3,508,953
Disproportionate-share hospital (DSH) Median	1,159,989 594,888	936,110 595,761	831,046 577,894	864,791 542,168	650,218 549,667
Outlier Median	3,367,109 582,572	2,988,010 538,116	274,406 212,434	158,927 126,559	147,244 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	14,532,825 3,662,910	8,924,236 3,730,911	10,163,036 4,081,319	15,605,001 4,643,908	18,075,275 4,389,147
Charity care Median	2,340,367 2,654,636	1,387,721 2,940,659	2,176,119 3,380,215	3,285,604 3,488,738	2,151,620 3,233,405
Uncompensated care (UCC) Median	5,517,842 5,147,790	2,905,127 5,337,617	9,108,490 5,711,082	5,791,900 5,923,418	6,214,043 5,508,107
UCC as a % of operating expenses Median	1.48% 3.24	0.72% 3.12	2.02% 3.21	1.25% 3.3	1.24% 2.86
Total shortfall/UCC Median	20,050,667 9,489,989	11,829,363 9,424,297	19,271,526 10,120,158	21,396,901 11,171,337	24,289,318 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	156,535,341 52,142,039	166,499,730 54,485,252	178,155,797 57,395,589	178,168,108 58,830,919	192,014,961 61,722,907
Salaries as a % of operating expenses Median	50.49 36.68	50.05 36.56	56.53 36.37	53.98 35.93	54.19 35.24
Intern, resident salaries* Median	0 2,598,592	0 2,686,824	0 2,753,773	885,424 2,937,156	1,659,999 2,909,848
Contract intern, resident salaries* Median	2,208,601 1,251,927	2,157,823 1,186,494	2,562,452 1,204,885	1,763,221 1,279,653	1,015,157 1,469,317
Contract adjusted salaries, direct-care Median	2,972,158 1,449,244	3,199,832 1,475,986	4,851,256 1,563,078	2,650,689 1,721,954	5,953,594 2,991,828
Contract hours, direct-care Median	37,272.54 22,725	41,861.98 23,018.5	58,595.54 24,503.48	38,319.16 25,026.5	58,722.02 33,786
Contract wages, direct-care Median	79.74 64.67	76.44 64.53	82.79 65.06	69.17 68.97	101.39 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.