As of the July, 2022, release via CMS

MERCY HOSPITAL

CMS id: 240115
4050 COON RAPIDS BLVD, COON RAPIDS MN 55433. County: ANOKA
System: ALLINA HEALTH SYSTEM
CBSA: Minneapolis-St. Paul-Bloomington, MN-WI

The 476-bed, acute-care hospital had $20,937,593 in net service to patients*, with a total profit margin of 5.98228% in fiscal year 2021, the latest year available.
It spent 1.60% of its operating expenses on uncompensated care and reported $6,455,285 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	374 118	431 118	434 119.5	421 118	426 119
Total beds Median	418 162	481 162	484 162	471 162	476 163.5
FTEs Median	2,661.51 788.06	2,774.04 793.42	2,790.40 806.03	2,667.62 787.61	2,791.44 804.34

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	671,059,860 150,932,746	724,833,736 158,950,878	756,576,646 168,696,998	718,109,744 163,454,693	763,638,199 186,589,412
Operating expenses Median	660,200,294 149,311,209	696,946,806 156,110,414	740,442,027 164,890,568	756,195,408 166,516,854	742,700,606 180,120,888
Net income from service 2 patients (NS2P) ? Median	10,859,566 -964,173	27,886,930 -643,601.5	16,134,619 -116,254	-38,085,664 -5,025,862	20,937,593 -1,284,564
NS2P margin ? Median	1.62% -0.62	3.85% -0.29	2.13% 0.18	-5.30% -5.07	2.74% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MERCY 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	22,499,617 5,089,215	22,659,414 4,572,541	22,779,641 5,268,134	59,448,039 13,092,619	26,319,924 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	3,380,899 224,999	3,212,403 199,009	1,265,503 206,870.5	1,035,879 194,343	399,686 249,496
⊳ Line 7: Investments ? ⊳ Median	212,508 299,524	230,900 188,688.5	301,097 370,813	-140,503 309,361.5	467,704 375,329
⊳ 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	12,320	4,460	0
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	3,033,908	2,833,691	3,124,580	2,035,773	2,523,126
⊳ Line 15: Revenue from rental of living quarters	0	0	0	0	0
⊳ Line 16: Revenue from sale of medical and surgical supplies	15,959	6,618	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	4,480	5,599	4,848	4,856	5,985
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	51,292	28,763	12,042	8,028	23,400
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	6,844	4,661	645	0	0
⊳ Line 21: Rental of vending machines	32,808	21,265	24,840	0	0
⊳ Line 22: Rental of hospital space	708,318	862,510	789,827	805,565	848,606
⊳ Line 23: Gov appropriations ? ⊳ Median	919,174 1,017,693	972,697 983,261.5	1,242,842 1,173,286	1,159,546 1,987,202	1,319,561 1,597,664
⊳ Sum Line 24	14,126,157	14,476,039	16,001,097	54,534,435	20,731,856
Total income ? Median	33,359,183 6,586,430	50,546,344 6,767,106	38,914,260 8,419,950	21,362,375 8,094,175	47,257,517 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	33,359,183 6,043,842	50,546,344 5,845,112	38,914,260 7,606,259	21,362,375 7,283,041	47,257,517 14,957,241
Net margin Median	4.80985% 4.62%	6.76211% 4.42%	4.99313% 5.16%	2.74737% 5.2%	5.98228% 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 MERCY 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	129,370,381 23,241,334	145,295,304 23,709,545	106,818,226 24,248,380	95,657,146 22,858,541	89,734,845 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	126,546,564 21,577,146	141,471,208 22,041,594	103,965,900 22,722,063	93,435,036 21,570,441	87,543,429 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	2,823,817 1,845,420	3,824,096 1,757,392	2,852,326 1,738,842	2,222,110 1,510,463	2,191,416 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	42,695,768 11,160,864	46,772,647 11,987,345	35,388,310 12,926,866	29,476,726 11,884,480	34,374,595 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	42,695,768 10,918,923	46,772,647 11,706,976	35,388,310 12,615,917	29,476,726 11,458,116	34,374,595 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	606,187 3,284,314	625,860 3,250,551	473,565 3,386,837	204,954 3,360,806	98,759 3,508,953
Disproportionate-share hospital (DSH) Median	3,029,049 594,888	3,595,645 595,761	2,576,922 577,894	2,496,387 542,168	2,459,836 549,667
Outlier Median	4,634,212 582,572	6,896,542 538,116	704,531 212,434	492,007 126,559	542,932 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	4,598,549 3,662,910	6,130,348 3,730,911	5,836,281 4,081,319	6,740,384 4,643,908	6,455,285 4,389,147
Charity care Median	6,117,342 2,654,636	7,529,216 2,940,659	9,419,208 3,380,215	9,517,107 3,488,738	6,155,567 3,233,405
Uncompensated care (UCC) Median	12,081,573 5,147,790	14,237,000 5,337,617	16,803,455 5,711,082	16,853,309 5,923,418	11,848,615 5,508,107
UCC as a % of operating expenses Median	1.83% 3.24	2.04% 3.12	2.27% 3.21	2.23% 3.3	1.60% 2.86
Total shortfall/UCC Median	16,680,122 9,489,989	20,367,348 9,424,297	22,639,736 10,120,158	23,593,693 11,171,337	18,303,900 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	237,520,325 52,142,039	249,887,041 54,485,252	258,897,590 57,395,589	267,844,675 58,830,919	273,345,999 61,722,907
Salaries as a % of operating expenses Median	35.98 36.68	35.85 36.56	34.97 36.37	35.42 35.93	36.80 35.24
Intern, resident salaries* Median	137,673 2,598,592	126,074 2,686,824	78,807 2,753,773	26,603 2,937,156	0 2,909,848
Contract intern, resident salaries* Median	0 1,251,927	82,825 1,186,494	60,115 1,204,885	95,111 1,279,653	131,937 1,469,317
Contract adjusted salaries, direct-care Median	5,677,071 1,449,244	4,900,853 1,475,986	4,675,389 1,563,078	5,705,362 1,721,954	14,205,825 2,991,828
Contract hours, direct-care Median	99,450.00 22,725	88,548.00 23,018.5	83,541.71 24,503.48	89,517.83 25,026.5	147,956.00 33,786
Contract wages, direct-care Median	57.08 64.67	55.35 64.53	55.96 65.06	63.73 68.97	96.01 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.