As of the July, 2022, release via CMS

HARNETT HEALTH SYSTEM

CMS id: 340071
800 TILGHMAN DRIVE, DUNN NC 28334. County: HARNETT
System: CAPE FEAR VALLEY HEALTH SYSTEM
CBSA: Fayetteville, NC

The 126-bed, acute-care hospital had $-2,827,471 in net service to patients*, with a total profit margin of 11.98313% in fiscal year 2021, the latest year available.
It spent 10.25% of its operating expenses on uncompensated care and reported $81,363 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	gov	gov	gov	gov	gov
Acute beds Median	137 118	137 118	112 119.5	112 118	112 119
Total beds Median	151 162	151 162	126 162	126 162	126 163.5
FTEs Median	734.61 788.06	715.67 793.42	747.92 806.03	745.97 787.61	967.54 804.34

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	103,334,085 150,932,746	94,031,134 158,950,878	99,365,777 168,696,998	101,527,733 163,454,693	118,492,645 186,589,412
Operating expenses Median	96,532,708 149,311,209	94,817,176 156,110,414	100,091,477 164,890,568	104,559,772 166,516,854	121,320,116 180,120,888
Net income from service 2 patients (NS2P) ? Median	6,801,377 -964,173	-786,042 -643,601.5	-725,700 -116,254	-3,032,039 -5,025,862	-2,827,471 -1,284,564
NS2P margin ? Median	6.58% -0.62	-0.84% -0.29	-0.73% 0.18	-2.99% -5.07	-2.39% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for HARNETT HEALTH SYSTEM 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	2,518,483 5,089,215	2,241,757 4,572,541	2,418,188 5,268,134	10,369,959 13,092,619	19,344,701 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	84,791 224,999	201,359 199,009	57,565 206,870.5	25,885 194,343	25,450 249,496
⊳ Line 7: Investments ? ⊳ Median	30,242 299,524	61,903 188,688.5	86,049 370,813	85,896 309,361.5	65,631 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	90,101	129,602	19,272	14,317	37,595
⊳ 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	435,558	451,283	471,314	313,834	260,048
⊳ 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	71	0	0
⊳ Line 17: Revenue from sale of drugs to other than patients	121,344	62,322	20	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	805	700	124
⊳ 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	12,813	18,441	12,729	15,509	2,697
⊳ Line 22: Rental of hospital space	354,136	352,233	245,475	295,809	290,239
⊳ 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	1,389,498	964,614	1,524,888	9,618,009	18,662,917
Total income ? Median	9,319,860 6,586,430	1,455,715 6,767,106	1,692,488 8,419,950	7,337,920 8,094,175	16,517,230 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	1 106,761	0 31,473.5
Net income Median	9,319,860 6,043,842	1,455,715 5,845,112	1,692,488 7,606,259	7,337,919 7,283,041	16,517,230 14,957,241
Net margin Median	8.80457% 4.62%	1.51207% 4.42%	1.66282% 5.16%	6.55770% 5.2%	11.98313% 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 HARNETT HEALTH SYSTEM 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	20,842,046 23,241,334	20,582,477 23,709,545	20,601,235 24,248,380	19,873,950 22,858,541	21,874,491 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	20,842,046 21,577,146	20,582,477 22,041,594	20,601,235 22,722,063	19,873,950 21,570,441	21,874,491 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	9,291,193 11,160,864	8,887,786 11,987,345	9,063,958 12,926,866	7,647,295 11,884,480	7,501,759 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	9,291,193 10,918,923	8,887,786 11,706,976	9,063,958 12,615,917	7,647,295 11,458,116	7,501,759 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	1,620,417 3,284,314	2,480,541 3,250,551	3,411,784 3,386,837	3,585,198 3,360,806	4,149,541 3,508,953
Disproportionate-share hospital (DSH) Median	705,746 594,888	695,110 595,761	553,241 577,894	463,467 542,168	447,532 549,667
Outlier Median	84,430 582,572	21,913 538,116	18,056 212,434	12,767 126,559	67,802 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	55,229 3,662,910	77,894 3,730,911	176,235 4,081,319	135,288 4,643,908	81,363 4,389,147
Charity care Median	2,598,836 2,654,636	4,146,675 2,940,659	7,186,744 3,380,215	2,021,016 3,488,738	5,022,444 3,233,405
Uncompensated care (UCC) Median	10,485,367 5,147,790	11,264,772 5,337,617	16,720,996 5,711,082	11,545,213 5,923,418	12,440,466 5,508,107
UCC as a % of operating expenses Median	10.86% 3.24	11.88% 3.12	16.71% 3.21	11.04% 3.3	10.25% 2.86
Total shortfall/UCC Median	10,540,596 9,489,989	11,342,666 9,424,297	16,897,231 10,120,158	11,680,501 11,171,337	12,521,829 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	41,278,013 52,142,039	41,342,198 54,485,252	45,258,647 57,395,589	46,624,852 58,830,919	54,922,369 61,722,907
Salaries as a % of operating expenses Median	42.76 36.68	43.60 36.56	45.22 36.37	44.59 35.93	45.27 35.24
Intern, resident salaries* Median	809,470 2,598,592	1,490,456 2,686,824	2,177,442 2,753,773	2,604,100 2,937,156	3,007,088 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	1,907,902 1,449,244	1,836,299 1,475,986	2,152,537 1,563,078	2,061,577 1,721,954	5,129,583 2,991,828
Contract hours, direct-care Median	33,975.17 22,725	33,457.00 23,018.5	44,398.01 24,503.48	37,754.00 25,026.5	60,450.00 33,786
Contract wages, direct-care Median	56.16 64.67	54.89 64.53	48.48 65.06	54.61 68.97	84.86 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.