As of the July, 2022, release via CMS

SKY LAKES MEDICAL CENTER

CMS id: 380050
2865 DAGGETT STREET, KLAMATH FALLS OR 97601. County: KLAMATH
System: --
CBSA: Klamath Falls, OR

The 90-bed, acute-care hospital had $-36,508,321 in net service to patients*, with a total profit margin of 3.61828% in fiscal year 2021, the latest year available.
It spent 2.67% of its operating expenses on uncompensated care and reported $0 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	105 118	105 118	105 119.5	90 118	90 119
Total beds Median	105 162	105 162	105 162	90 162	90 163.5
FTEs Median	1,098.21 788.06	1,075.16 793.42	1,105.92 806.03	1,237.65 787.61	1,180.42 804.34

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	219,549,194 150,932,746	231,424,943 158,950,878	227,417,790 168,696,998	207,553,563 163,454,693	233,447,747 186,589,412
Operating expenses Median	236,072,268 149,311,209	241,406,531 156,110,414	254,284,429 164,890,568	254,071,834 166,516,854	269,956,068 180,120,888
Net income from service 2 patients (NS2P) ? Median	-16,523,074 -964,173	-9,981,588 -643,601.5	-26,866,639 -116,254	-46,518,271 -5,025,862	-36,508,321 -1,284,564
NS2P margin ? Median	-7.53% -0.62	-4.31% -0.29	-11.81% 0.18	-22.41% -5.07	-15.64% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for SKY LAKES MEDICAL CENTER 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	28,435,101 5,089,215	26,615,819 4,572,541	49,156,761 5,268,134	64,076,285 13,092,619	45,972,394 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	1,607,500 224,999	1,589,448 199,009	3,190,736 206,870.5	2,789,678 194,343	-709,523 249,496
⊳ Line 7: Investments ? ⊳ Median	4,353,027 299,524	4,321,942 188,688.5	7,944,730 370,813	5,721,465 309,361.5	6,919,440 375,329
⊳ 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	345	675	160	80	280
⊳ Line 14: Revenue from meals sold to emplyees and guests	0	0	0	0	624,797
⊳ Line 15: Revenue from rental of living quarters	0	0	0	0	0
⊳ Line 16: Revenue from sale of medical and surgical supplies	3,648	9,947	66,303	18,832	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	11,928	2,218	846	1,722	567
⊳ 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	1,049,063	978,236	604,924	502,616	448,902
⊳ 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	21,409,590	19,713,353	37,349,062	55,041,892	38,687,931
Total income ? Median	11,912,027 6,586,430	16,634,231 6,767,106	22,290,122 8,419,950	17,558,014 8,094,175	9,464,073 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	-340,266 106,761	-646,130 31,473.5
Net income Median	11,912,027 6,043,842	16,634,231 5,845,112	22,290,122 7,606,259	17,898,280 7,283,041	10,110,203 14,957,241
Net margin Median	4.80354% 4.62%	6.44636% 4.42%	8.05935% 5.16%	6.58922% 5.2%	3.61828% 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 SKY LAKES MEDICAL CENTER 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	32,667,276 23,241,334	32,714,574 23,709,545	29,819,144 24,248,380	23,517,462 22,858,541	25,308,374 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	32,667,276 21,577,146	32,714,574 22,041,594	29,819,144 22,722,063	23,517,462 21,570,441	25,308,374 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	27,357,697 11,160,864	30,877,071 11,987,345	31,697,874 12,926,866	31,071,579 11,884,480	32,703,872 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	25,289,591 10,918,923	29,001,382 11,706,976	29,979,364 12,615,917	29,488,254 11,458,116	31,062,425 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	2,068,106 1,282,808	1,875,689 1,407,728	1,718,510 1,341,512	1,583,325 1,407,046	1,641,447 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	3,433,945 3,284,314	3,401,863 3,250,551	3,356,658 3,386,837	2,816,001 3,360,806	3,254,991 3,508,953
Disproportionate-share hospital (DSH) Median	875,114 594,888	863,157 595,761	853,657 577,894	740,226 542,168	636,427 549,667
Outlier Median	1,501,116 582,572	1,337,584 538,116	244,014 212,434	92,563 126,559	175,241 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	0 3,662,910	0 3,730,911	13,874,251 4,081,319	0 4,643,908	0 4,389,147
Charity care Median	6,076,983 2,654,636	5,228,576 2,940,659	5,686,549 3,380,215	3,856,485 3,488,738	4,128,326 3,233,405
Uncompensated care (UCC) Median	7,949,804 5,147,790	7,954,141 5,337,617	7,987,168 5,711,082	6,288,984 5,923,418	7,195,180 5,508,107
UCC as a % of operating expenses Median	3.37% 3.24	3.29% 3.12	3.14% 3.21	2.48% 3.3	2.67% 2.86
Total shortfall/UCC Median	7,949,804 9,489,989	7,954,141 9,424,297	21,861,419 10,120,158	6,288,984 11,171,337	7,195,180 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	89,181,485 52,142,039	93,185,098 54,485,252	100,200,516 57,395,589	103,530,783 58,830,919	107,121,636 61,722,907
Salaries as a % of operating expenses Median	37.78 36.68	38.60 36.56	39.40 36.37	40.75 35.93	39.68 35.24
Intern, resident salaries* Median	162,351 2,598,592	173,211 2,686,824	187,772 2,753,773	182,355 2,937,156	142,587 2,909,848
Contract intern, resident salaries* Median	1,594,054 1,251,927	1,715,343 1,186,494	1,812,045 1,204,885	1,836,589 1,279,653	1,887,425 1,469,317
Contract adjusted salaries, direct-care Median	10,868,140 1,449,244	13,838,955 1,475,986	7,636,061 1,563,078	4,061,007 1,721,954	4,343,124 2,991,828
Contract hours, direct-care Median	154,073.71 22,725	188,933.51 23,018.5	106,456.34 24,503.48	88,388.14 25,026.5	32,643.98 33,786
Contract wages, direct-care Median	70.54 64.67	73.25 64.53	71.73 65.06	45.95 68.97	133.05 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.