As of the July, 2022, release via CMS

THE VALLEY HOSPITAL

CMS id: 310012
223 N. VAN DIEN AVENUE, RIDGEWOOD NJ 7450. County: BERGEN
System: THE VALLEY HEALTH SYSTEM
CBSA: New York-Newark-Jersey City, NY-NJ-PA

The 335-bed, acute-care hospital had $152,113,619 in net service to patients*, with a total profit margin of 17.95003% in fiscal year 2021, the latest year available.
It spent 1.41% of its operating expenses on uncompensated care and reported $4,537,582 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	329 118	327 118	353 119.5	299 118	308 119
Total beds Median	365 162	363 162	388 162	334 162	335 163.5
FTEs Median	2,982.41 788.06	2,995.91 793.42	3,106.21 806.03	3,117.43 787.61	3,201.37 804.34

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	657,649,757 150,932,746	695,115,319 158,950,878	801,025,162 168,696,998	739,631,417 163,454,693	869,665,583 186,589,412
Operating expenses Median	588,758,064 149,311,209	596,877,941 156,110,414	651,335,906 164,890,568	652,342,431 166,516,854	717,551,964 180,120,888
Net income from service 2 patients (NS2P) ? Median	68,891,693 -964,173	98,237,378 -643,601.5	149,689,256 -116,254	87,288,986 -5,025,862	152,113,619 -1,284,564
NS2P margin ? Median	10.48% -0.62	14.13% -0.29	18.69% 0.18	11.80% -5.07	17.49% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for THE VALLEY 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	11,499,254 5,089,215	29,870,951 4,572,541	-24,233,300 5,268,134	74,175,646 13,092,619	4,864,896 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	0 199,009	0 206,870.5	0 194,343	0 249,496
⊳ Line 7: Investments ? ⊳ Median	0 299,524	0 188,688.5	0 370,813	0 309,361.5	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	1,722,872	2,615,078	3,493,632	3,170,400	4,717,892
⊳ 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	1,465,026	1,610,992	1,703,045	1,208,337	1,457,595
⊳ 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	30,068	5,483	4,294
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	7,090	6,950	7,188	7,850	10,200
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	330,925	363,961	367,600	210,619	222,129
⊳ Line 21: Rental of vending machines	34,459	35,074	28,126	24,354	30,100
⊳ Line 22: Rental of hospital space	662,210	651,819	807,909	392,786	394,836
⊳ 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	7,276,826	24,587,077	-30,670,868	69,155,817	-1,972,150
Total income ? Median	80,390,947 6,586,430	128,108,329 6,767,106	125,455,956 8,419,950	161,464,632 8,094,175	156,978,515 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	80,390,947 6,043,842	128,108,329 5,845,112	125,455,956 7,606,259	161,464,632 7,283,041	156,978,515 14,957,241
Net margin Median	12.01391% 4.62%	17.67045% 4.42%	16.15052% 5.16%	19.84065% 5.2%	17.95003% 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 THE VALLEY 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	120,588,577 23,241,334	116,198,278 23,709,545	118,325,952 24,248,380	106,772,331 22,858,541	112,848,121 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	120,588,577 21,577,146	116,198,278 22,041,594	118,325,952 22,722,063	106,772,331 21,570,441	112,848,121 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	65,452,020 11,160,864	78,768,945 11,987,345	79,153,401 12,926,866	67,219,998 11,884,480	88,207,087 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	65,452,020 10,918,923	78,768,945 11,706,976	79,153,401 12,615,917	67,219,998 11,458,116	88,207,087 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	8,648,913 582,572	8,433,321 538,116	863,729 212,434	714,364 126,559	949,495 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	7,408,921 3,662,910	5,497,336 3,730,911	9,616,579 4,081,319	8,644,988 4,643,908	4,537,582 4,389,147
Charity care Median	16,063,621 2,654,636	4,612,914 2,940,659	5,178,921 3,380,215	5,065,405 3,488,738	6,195,128 3,233,405
Uncompensated care (UCC) Median	21,359,269 5,147,790	9,679,153 5,337,617	10,910,813 5,711,082	10,244,069 5,923,418	10,100,474 5,508,107
UCC as a % of operating expenses Median	3.63% 3.24	1.62% 3.12	1.68% 3.21	1.57% 3.3	1.41% 2.86
Total shortfall/UCC Median	28,768,190 9,489,989	15,176,489 9,424,297	20,527,392 10,120,158	18,889,057 11,171,337	14,638,056 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	248,126,007 52,142,039	252,325,828 54,485,252	269,855,358 57,395,589	271,248,621 58,830,919	288,597,012 61,722,907
Salaries as a % of operating expenses Median	40.35 36.68	40.85 36.56	38.23 36.37	40.20 35.93	38.86 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	1,475,773 1,449,244	2,371,898 1,475,986	3,098,524 1,563,078	2,679,274 1,721,954	5,020,931 2,991,828
Contract hours, direct-care Median	20,601.55 22,725	29,832.00 23,018.5	42,268.00 24,503.48	32,399.00 25,026.5	43,050.00 33,786
Contract wages, direct-care Median	71.63 64.67	79.51 64.53	73.31 65.06	82.70 68.97	116.63 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.