As of the July, 2022, release via CMS

SALEM HOSPITAL

CMS id: 380051
890 OAK STREET SE, SALEM OR 97301. County: MARION
System: SALEM HEALTH
CBSA: Salem, OR

The 502-bed, acute-care hospital had $-109,467,417 in net service to patients*, with a total profit margin of 1.51426% in fiscal year 2021, the latest year available.
It spent 2.73% of its operating expenses on uncompensated care and reported $29,253,966 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	287 118	304 118	334 119.5	366 118	366 119
Total beds Median	423 162	440 162	470 162	502 162	502 163.5
FTEs Median	3,665.14 788.06	3,788.90 793.42	3,884.56 806.03	3,993.55 787.61	3,991.53 804.34

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	693,763,401 150,932,746	716,283,030 158,950,878	729,353,409 168,696,998	731,057,155 163,454,693	778,105,284 186,589,412
Operating expenses Median	669,967,839 149,311,209	703,523,847 156,110,414	749,033,775 164,890,568	781,936,557 166,516,854	887,572,701 180,120,888
Net income from service 2 patients (NS2P) ? Median	23,795,562 -964,173	12,759,183 -643,601.5	-19,680,366 -116,254	-50,879,402 -5,025,862	-109,467,417 -1,284,564
NS2P margin ? Median	3.43% -0.62	1.78% -0.29	-2.70% 0.18	-6.96% -5.07	-14.07% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for SALEM 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	82,554,006 5,089,215	90,190,796 4,572,541	110,531,105 5,268,134	110,638,697 13,092,619	123,114,224 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	663,799 224,999	636,662 199,009	1,024,214 206,870.5	23,473 194,343	8,652 249,496
⊳ Line 7: Investments ? ⊳ Median	64,473,116 299,524	53,088,831 188,688.5	45,116,631 370,813	41,070,846 309,361.5	5,626,256 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	0	0	24,379	29,950	43,659
⊳ Line 11: Rebates and refunds of expenses	479,804	700,076	418,043	510,177	689,613
⊳ 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	4,842,093	4,800,634	4,922,068	4,291,822	3,639,126
⊳ 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	6,709,971	8,736,002	159,148	70,941	305,393
⊳ Line 18: Revenue from sale of medical records and abstracts	16,647	21,432	9,020	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	17,341	15,909	34,165	16,164	3,296
⊳ Line 22: Rental of hospital space	1,265,027	867,885	715,153	712,290	208,191
⊳ 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	4,086,208	21,323,365	58,108,284	63,913,034	112,590,038
Total income ? Median	106,349,568 6,586,430	102,949,979 6,767,106	90,850,739 8,419,950	59,759,295 8,094,175	13,646,807 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	106,349,568 6,043,842	102,949,979 5,845,112	90,850,739 7,606,259	59,759,295 7,283,041	13,646,807 14,957,241
Net margin Median	13.69924% 4.62%	12.76545% 4.42%	10.81705% 5.16%	7.09987% 5.2%	1.51426% 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 SALEM 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	76,680,665 23,241,334	78,108,915 23,709,545	83,434,159 24,248,380	78,164,896 22,858,541	82,222,700 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	72,404,920 21,577,146	73,379,642 22,041,594	79,307,877 22,722,063	74,582,023 21,570,441	77,627,090 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	2,060,176 1,845,420	1,800,449 1,757,392	1,511,798 1,738,842	1,265,319 1,510,463	1,637,175 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	2,215,569 3,535,627	2,928,824 3,746,588	2,614,484 3,782,288	2,317,554 3,865,578	2,958,435 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	27,927,544 11,160,864	28,703,280 11,987,345	31,611,051 12,926,866	33,029,151 11,884,480	35,982,542 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	27,927,544 10,918,923	28,703,280 11,706,976	31,611,051 12,615,917	33,029,151 11,458,116	35,982,542 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	2,444,744 594,888	2,374,315 595,761	2,509,803 577,894	2,001,242 542,168	2,030,071 549,667
Outlier Median	6,162,824 582,572	4,534,069 538,116	4,681,711 212,434	477,903 126,559	749,068 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	36,901,721 3,662,910	34,836,745 3,730,911	24,678,125 4,081,319	34,206,510 4,643,908	29,253,966 4,389,147
Charity care Median	11,143,645 2,654,636	15,307,196 2,940,659	22,100,946 3,380,215	23,841,066 3,488,738	23,142,907 3,233,405
Uncompensated care (UCC) Median	18,758,923 5,147,790	23,584,831 5,337,617	26,156,710 5,711,082	25,562,711 5,923,418	24,229,132 5,508,107
UCC as a % of operating expenses Median	2.80% 3.24	3.35% 3.12	3.49% 3.21	3.27% 3.3	2.73% 2.86
Total shortfall/UCC Median	55,660,644 9,489,989	58,421,576 9,424,297	50,834,835 10,120,158	59,769,221 11,171,337	53,483,098 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	304,901,131 52,142,039	324,213,550 54,485,252	351,941,775 57,395,589	381,382,730 58,830,919	406,015,607 61,722,907
Salaries as a % of operating expenses Median	45.51 36.68	46.08 36.56	46.99 36.37	48.77 35.93	45.74 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	666,340 1,449,244	3,488,869 1,475,986	3,273,201 1,563,078	3,607,454 1,721,954	5,888,911 2,991,828
Contract hours, direct-care Median	8,816.49 22,725	54,799.73 23,018.5	47,443.68 24,503.48	53,392.96 25,026.5	78,409.65 33,786
Contract wages, direct-care Median	75.58 64.67	63.67 64.53	68.99 65.06	67.56 68.97	75.10 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.