As of the July, 2022, release via CMS

KETTERING MEMORIAL HOSPITAL

CMS id: 360079
3535 SOUTHERN BOULEVARD, KETTERING OH 45429. County: MONTGOMERY
System: KETTERING MEDICAL ADMIN SUPPORT
CBSA: Dayton-Kettering, OH

The 403-bed, acute-care hospital had $12,288,420 in net service to patients*, with a total profit margin of 18.69345% in fiscal year 2021, the latest year available.
It spent 1.94% of its operating expenses on uncompensated care and reported $24,053,095 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	284 118	306 118	312 119.5	312 118	312 119
Total beds Median	387 162	410 162	415 162	403 162	403 163.5
FTEs Median	2,659.89 788.06	2,777.00 793.42	2,839.82 806.03	2,597.73 787.61	2,653.79 804.34

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	597,661,645 150,932,746	621,538,288 158,950,878	642,619,195 168,696,998	633,872,471 163,454,693	689,541,989 186,589,412
Operating expenses Median	558,932,986 149,311,209	585,734,526 156,110,414	641,994,479 164,890,568	635,314,607 166,516,854	677,253,569 180,120,888
Net income from service 2 patients (NS2P) ? Median	38,728,659 -964,173	35,803,762 -643,601.5	624,716 -116,254	-1,442,136 -5,025,862	12,288,420 -1,284,564
NS2P margin ? Median	6.48% -0.62	5.76% -0.29	0.10% 0.18	-0.23% -5.07	1.78% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for KETTERING MEMORIAL 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	108,499,341 5,089,215	61,653,624 4,572,541	155,789,765 5,268,134	135,978,481 13,092,619	143,421,098 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	5,552,104 299,524	5,405,664 188,688.5	5,288,944 370,813	5,061,835 309,361.5	4,786,984 375,329
⊳ 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	102,947,237	56,247,960	150,500,821	130,916,646	138,634,114
Total income ? Median	147,228,000 6,586,430	97,457,386 6,767,106	156,414,481 8,419,950	134,536,345 8,094,175	155,709,518 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	147,228,000 6,043,842	97,457,386 5,845,112	156,414,481 7,606,259	134,536,345 7,283,041	155,709,518 14,957,241
Net margin Median	20.84907% 4.62%	14.26501% 4.42%	19.59077% 5.16%	17.47564% 5.2%	18.69345% 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 KETTERING MEMORIAL 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	93,035,557 23,241,334	97,590,969 23,709,545	98,954,476 24,248,380	93,103,814 22,858,541	88,693,521 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	85,974,443 21,577,146	89,317,535 22,041,594	91,020,173 22,722,063	86,213,277 21,570,441	85,773,107 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	7,061,114 3,535,627	8,273,434 3,746,588	7,934,303 3,782,288	6,890,537 3,865,578	2,920,414 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	36,214,517 11,160,864	39,000,065 11,987,345	38,486,764 12,926,866	35,393,410 11,884,480	39,034,581 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	36,104,090 10,918,923	38,822,215 11,706,976	38,280,089 12,615,917	35,189,068 11,458,116	38,827,487 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	110,427 1,282,808	177,850 1,407,728	206,675 1,341,512	204,342 1,407,046	207,094 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	11,256,755 3,284,314	11,291,219 3,250,551	10,816,651 3,386,837	10,479,534 3,360,806	10,884,130 3,508,953
Disproportionate-share hospital (DSH) Median	1,389,707 594,888	1,402,130 595,761	1,441,623 577,894	1,632,856 542,168	1,787,028 549,667
Outlier Median	1,270,902 582,572	1,393,486 538,116	273,431 212,434	212,050 126,559	216,893 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	13,848,303 3,662,910	17,201,188 3,730,911	21,065,559 4,081,319	25,649,252 4,643,908	24,053,095 4,389,147
Charity care Median	4,645,723 2,654,636	5,774,703 2,940,659	7,288,725 3,380,215	11,581,930 3,488,738	9,775,841 3,233,405
Uncompensated care (UCC) Median	6,843,629 5,147,790	10,018,373 5,337,617	12,231,417 5,711,082	16,029,841 5,923,418	13,128,085 5,508,107
UCC as a % of operating expenses Median	1.22% 3.24	1.71% 3.12	1.91% 3.21	2.52% 3.3	1.94% 2.86
Total shortfall/UCC Median	20,691,932 9,489,989	27,219,561 9,424,297	33,296,976 10,120,158	41,679,093 11,171,337	37,181,180 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	181,538,812 52,142,039	180,640,378 54,485,252	192,509,783 57,395,589	184,334,840 58,830,919	199,949,356 61,722,907
Salaries as a % of operating expenses Median	38.81 36.68	37.12 36.56	36.96 36.37	36.01 35.93	36.37 35.24
Intern, resident salaries* Median	4,551,320 2,598,592	4,539,690 2,686,824	4,578,627 2,753,773	4,745,964 2,937,156	4,903,164 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	3,381,327 1,449,244	3,813,245 1,475,986	3,899,285 1,563,078	1,774,884 1,721,954	17,199,438 2,991,828
Contract hours, direct-care Median	48,640.00 22,725	56,764.26 23,018.5	46,915.00 24,503.48	19,747.00 25,026.5	114,614.00 33,786
Contract wages, direct-care Median	69.52 64.67	67.18 64.53	83.11 65.06	89.88 68.97	150.06 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.