As of the July, 2022, release via CMS

MERCY HEALTH - FAIRFIELD HOSPITAL

CMS id: 360056
3000 MACK RD., FAIRFIELD OH 45014. County: BUTLER
System: BON SECOURS MERCY HEALTH
CBSA: Cincinnati, OH-KY-IN

The 214-bed, acute-care hospital had $21,223,682 in net service to patients*, with a total profit margin of 8.61239% in fiscal year 2021, the latest year available.
It spent 3.16% of its operating expenses on uncompensated care and reported $14,582,954 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	163 118	163 118	163 119.5	163 118	163 119
Total beds Median	214 162	214 162	214 162	214 162	214 163.5
FTEs Median	1,079.72 788.06	1,089.64 793.42	1,054.76 806.03	985.57 787.61	976.53 804.34

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	262,876,086 150,932,746	272,759,632 158,950,878	266,544,281 168,696,998	249,891,337 163,454,693	279,617,880 186,589,412
Operating expenses Median	225,748,927 149,311,209	237,438,390 156,110,414	241,709,986 164,890,568	235,599,710 166,516,854	258,394,198 180,120,888
Net income from service 2 patients (NS2P) ? Median	37,127,159 -964,173	35,321,242 -643,601.5	24,834,295 -116,254	14,291,627 -5,025,862	21,223,682 -1,284,564
NS2P margin ? Median	14.12% -0.62	12.95% -0.29	9.32% 0.18	5.72% -5.07	7.59% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MERCY HEALTH - FAIRFIELD 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	2,886,407 5,089,215	3,745,300 4,572,541	3,135,349 5,268,134	21,454,006 13,092,619	3,127,449 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	46,354 224,999	0 199,009	0 206,870.5	3,394 194,343	7,415 249,496
⊳ Line 7: Investments ? ⊳ Median	38,218 299,524	57,822 188,688.5	2,228 370,813	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	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	950,426	978,117	961,556	579,443	605,751
⊳ 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	223,244	154,014	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	507,034	488,181	533,897	0	0
⊳ Line 21: Rental of vending machines	27,545	20,109	10,659	7,338	30,710
⊳ Line 22: Rental of hospital space	525,328	605,551	559,671	516,795	573,704
⊳ 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	568,258	1,441,506	1,067,338	20,347,036	1,909,869
Total income ? Median	40,013,566 6,586,430	39,066,542 6,767,106	27,969,644 8,419,950	35,745,633 8,094,175	24,351,131 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	-213,209 106,761	0 31,473.5
Net income Median	40,013,566 6,043,842	39,066,542 5,845,112	27,969,644 7,606,259	35,958,842 7,283,041	24,351,131 14,957,241
Net margin Median	15.05614% 4.62%	14.12870% 4.42%	10.37143% 5.16%	13.25206% 5.2%	8.61239% 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 HEALTH - FAIRFIELD 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	43,947,027 23,241,334	43,768,963 23,709,545	41,655,091 24,248,380	38,995,577 22,858,541	40,076,232 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	39,632,052 21,577,146	39,176,777 22,041,594	36,921,448 22,722,063	35,364,273 21,570,441	36,050,739 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	4,314,975 3,535,627	4,592,186 3,746,588	4,733,643 3,782,288	3,631,304 3,865,578	4,025,493 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	15,445,029 11,160,864	17,738,122 11,987,345	18,801,520 12,926,866	15,544,877 11,884,480	15,799,799 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	15,445,029 10,918,923	17,738,122 11,706,976	18,801,520 12,615,917	15,544,877 11,458,116	15,799,799 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	615,160 594,888	776,848 595,761	631,506 577,894	684,528 542,168	643,929 549,667
Outlier Median	959,773 582,572	966,775 538,116	141,915 212,434	106,928 126,559	96,510 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	7,167,852 3,662,910	8,969,506 3,730,911	11,975,352 4,081,319	15,466,144 4,643,908	14,582,954 4,389,147
Charity care Median	3,005,440 2,654,636	5,309,258 2,940,659	4,978,689 3,380,215	4,030,585 3,488,738	4,010,256 3,233,405
Uncompensated care (UCC) Median	8,035,371 5,147,790	9,990,544 5,337,617	10,345,285 5,711,082	9,220,258 5,923,418	8,162,487 5,508,107
UCC as a % of operating expenses Median	3.56% 3.24	4.21% 3.12	4.28% 3.21	3.91% 3.3	3.16% 2.86
Total shortfall/UCC Median	15,203,223 9,489,989	18,960,050 9,424,297	22,320,637 10,120,158	24,686,402 11,171,337	22,745,441 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	70,331,833 52,142,039	74,093,869 54,485,252	70,973,984 57,395,589	70,927,869 58,830,919	75,163,826 61,722,907
Salaries as a % of operating expenses Median	31.15 36.68	31.21 36.56	29.36 36.37	30.11 35.93	29.09 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	688,131 1,449,244	869,940 1,475,986	734,207 1,563,078	1,456,181 1,721,954	4,133,443 2,991,828
Contract hours, direct-care Median	8,045.35 22,725	16,878.00 23,018.5	10,314.57 24,503.48	24,552.28 25,026.5	41,042.57 33,786
Contract wages, direct-care Median	85.53 64.67	51.54 64.53	71.18 65.06	59.31 68.97	100.71 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.