As of the July, 2022, release via CMS

UPMC MERCY HOSPITAL

CMS id: 390028
1400 LOCUST STREET, PITTSBURGH PA 15219. County: ALLEGHENY
System: UPMC HEALTH SYSTEM
CBSA: Pittsburgh, PA

The 423-bed, acute-care hospital had $-57,442,066 in net service to patients*, with a total profit margin of -9.51858% in fiscal year 2021, the latest year available.
It spent 1.44% of its operating expenses on uncompensated care and reported $209,691 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	351 118	341 118	307 119.5	286 118	295 119
Total beds Median	492 162	482 162	445 162	415 162	423 163.5
FTEs Median	2,242.99 788.06	2,236.33 793.42	2,159.32 806.03	2,097.02 787.61	2,211.83 804.34

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	381,301,790 150,932,746	384,472,084 158,950,878	379,795,877 168,696,998	383,394,724 163,454,693	414,531,426 186,589,412
Operating expenses Median	426,062,814 149,311,209	435,799,055 156,110,414	439,288,084 164,890,568	447,255,455 166,516,854	471,973,492 180,120,888
Net income from service 2 patients (NS2P) ? Median	-44,761,024 -964,173	-51,326,971 -643,601.5	-59,492,207 -116,254	-63,860,731 -5,025,862	-57,442,066 -1,284,564
NS2P margin ? Median	-11.74% -0.62	-13.35% -0.29	-15.66% 0.18	-16.66% -5.07	-13.86% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for UPMC MERCY 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	23,083,767 5,089,215	16,387,894 4,572,541	17,423,134 5,268,134	34,123,063 13,092,619	16,422,034 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	8,409,692 224,999	879,752 199,009	720,846 206,870.5	632,464 194,343	797,487 249,496
⊳ Line 7: Investments ? ⊳ Median	0 299,524	0 188,688.5	0 370,813	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	2,215,877	2,718,600	2,872,607	2,934,895	2,862,410
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	2,399,950	2,475,690	2,304,729	2,005,612	1,678,589
⊳ Line 15: Revenue from rental of living quarters	0	0	0	0	0
⊳ Line 16: Revenue from sale of medical and surgical supplies	244,149	308,710	394,305	422,435	196,076
⊳ Line 17: Revenue from sale of drugs to other than patients	2,451,432	2,334,715	3,622,156	2,579,555	2,230,717
⊳ Line 18: Revenue from sale of medical records and abstracts	2,615	3,114	1,736	1,554	1,450
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	1,296,513	1,940,582	2,169,525	2,238,287	2,180,937
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	412,725	360,175	305,757	232,011	167,389
⊳ Line 21: Rental of vending machines	0	0	0	0	0
⊳ Line 22: Rental of hospital space	4,271,161	3,860,404	3,598,473	2,986,871	1,351,699
⊳ 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	1,379,653	1,506,152	1,433,000	20,089,379	4,955,280
Total income ? Median	-21,677,257 6,586,430	-34,939,077 6,767,106	-42,069,073 8,419,950	-29,737,668 8,094,175	-41,020,032 15,162,888
Non-operating expenses Median	0 146,289.5	3,450,000 164,857	0 89,880.5	-241,683 106,761	617 31,473.5
Net income Median	-21,677,257 6,043,842	-38,389,077 5,845,112	-42,069,073 7,606,259	-29,495,985 7,283,041	-41,020,649 14,957,241
Net margin Median	-5.36054% 4.62%	-9.57668% 4.42%	-10.59090% 5.16%	-7.06461% 5.2%	-9.51858% 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 UPMC MERCY 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	68,610,369 23,241,334	65,285,247 23,709,545	68,321,425 24,248,380	68,505,810 22,858,541	71,159,874 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	60,245,527 21,577,146	57,459,667 22,041,594	60,487,112 22,722,063	60,920,951 21,570,441	64,776,428 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	8,364,842 3,535,627	7,825,580 3,746,588	7,834,313 3,782,288	7,584,859 3,865,578	6,383,446 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	13,189,175 11,160,864	13,844,078 11,987,345	13,117,986 12,926,866	12,849,598 11,884,480	14,221,792 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	13,189,175 10,918,923	13,844,078 11,706,976	13,117,986 12,615,917	12,849,598 11,458,116	14,221,792 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	15,842,909 3,284,314	15,687,950 3,250,551	17,036,841 3,386,837	18,929,036 3,360,806	19,436,946 3,508,953
Disproportionate-share hospital (DSH) Median	1,853,608 594,888	1,645,878 595,761	1,516,714 577,894	1,361,138 542,168	1,235,535 549,667
Outlier Median	954,755 582,572	444,383 538,116	612,305 212,434	171,977 126,559	152,824 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	238,635 3,662,910	277,486 3,730,911	111,536 4,081,319	57,550 4,643,908	209,691 4,389,147
Charity care Median	5,828,940 2,654,636	5,131,151 2,940,659	6,114,247 3,380,215	6,570,833 3,488,738	4,361,367 3,233,405
Uncompensated care (UCC) Median	9,536,201 5,147,790	8,759,793 5,337,617	9,817,281 5,711,082	9,525,541 5,923,418	6,779,660 5,508,107
UCC as a % of operating expenses Median	2.24% 3.24	2.01% 3.12	2.23% 3.21	2.13% 3.3	1.44% 2.86
Total shortfall/UCC Median	9,774,836 9,489,989	9,037,279 9,424,297	9,928,817 10,120,158	9,583,091 11,171,337	6,989,351 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	123,867,040 52,142,039	127,449,732 54,485,252	126,011,163 57,395,589	126,464,022 58,830,919	136,853,918 61,722,907
Salaries as a % of operating expenses Median	29.07 36.68	29.25 36.56	28.69 36.37	28.28 35.93	29.00 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	11,204,982 1,251,927	12,261,295 1,186,494	12,417,849 1,204,885	12,853,217 1,279,653	10,724,946 1,469,317
Contract adjusted salaries, direct-care Median	11,359,396 1,449,244	12,475,970 1,475,986	12,694,819 1,563,078	13,407,771 1,721,954	11,374,917 2,991,828
Contract hours, direct-care Median	330,413.31 22,725	355,558.83 23,018.5	349,568.18 24,503.48	356,543.87 25,026.5	350,873.00 33,786
Contract wages, direct-care Median	34.38 64.67	35.09 64.53	36.32 65.06	37.60 68.97	32.42 88.94

* in an approved program

Return to top

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.