As of the July, 2022, release via CMS

READING HOSPITAL AND MEDICAL CENTER

CMS id: 390044
420 SOUTH FIFTH AVENUE, READING PA 19612. County: BERKS
System: TOWER HEALTH
CBSA: Reading, PA

The 655-bed, acute-care hospital had $114,140,780 in net service to patients*, with a total profit margin of 16.58071% in fiscal year 2021, the latest year available.
It spent 2.32% of its operating expenses on uncompensated care and reported $25,422,937 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	455 118	482 118	491 119.5	467 118	432 119
Total beds Median	678 162	715 162	724 162	700 162	655 163.5
FTEs Median	4,882.58 788.06	4,920.81 793.42	5,097.23 806.03	3,700.11 787.61	4,826.30 804.34

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	906,822,928 150,932,746	954,357,027 158,950,878	976,052,427 168,696,998	934,652,693 163,454,693	1,055,662,202 186,589,412
Operating expenses Median	859,474,557 149,311,209	879,804,724 156,110,414	895,695,953 164,890,568	968,680,428 166,516,854	941,521,422 180,120,888
Net income from service 2 patients (NS2P) ? Median	47,348,371 -964,173	74,552,303 -643,601.5	80,356,474 -116,254	-34,027,735 -5,025,862	114,140,780 -1,284,564
NS2P margin ? Median	5.22% -0.62	7.81% -0.29	8.23% 0.18	-3.64% -5.07	10.81% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for READING HOSPITAL AND 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	29,099,291 5,089,215	33,461,694 4,572,541	41,332,217 5,268,134	102,483,768 13,092,619	72,999,279 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	208,812 199,009	0 206,870.5	0 194,343	0 249,496
⊳ Line 7: Investments ? ⊳ Median	12,620 299,524	692,534 188,688.5	9,773 370,813	497,977 309,361.5	2,526 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	0	56,178	21,116	33,432	96,324
⊳ Line 11: Rebates and refunds of expenses	1,029,610	1,950,744	2,615,999	2,576,559	4,301,432
⊳ Line 12: Parking lot receipts	4,550	1,055	2,000	3,250	350
⊳ Line 13: Revenue from laundry and linen service	50,357	0	0	0	411
⊳ Line 14: Revenue from meals sold to emplyees and guests	2,810,364	2,589,748	2,851,444	4,985,545	3,970,077
⊳ Line 15: Revenue from rental of living quarters	150,602	137,537	347,936	347,936	236,865
⊳ 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	773,293	3,509,123	14,914	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	32,689	22,145	37,515	20,121	28,313
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	2,440,575	2,754,345	3,577,151	845,647	911,877
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	531,532	955,791	0	0
⊳ Line 21: Rental of vending machines	172,144	0	0	0	0
⊳ Line 22: Rental of hospital space	194,880	195,160	1,264,793	895,909	1,171,171
⊳ Line 23: Gov appropriations ? ⊳ Median	741,798 1,017,693	821,864 983,261.5	481,014 1,173,286	1,582,733 1,987,202	2,175,832 1,597,664
⊳ Sum Line 24	20,651,949	19,966,217	29,129,869	90,685,659	60,088,876
Total income ? Median	76,447,662 6,586,430	108,013,997 6,767,106	121,688,691 8,419,950	68,456,033 8,094,175	187,140,059 15,162,888
Non-operating expenses Median	305,186 146,289.5	483,747 164,857	8,529 89,880.5	5,681 106,761	1 31,473.5
Net income Median	76,142,476 6,043,842	107,530,250 5,845,112	121,680,162 7,606,259	68,450,352 7,283,041	187,140,058 14,957,241
Net margin Median	8.13556% 4.62%	10.88563% 4.42%	11.96009% 5.16%	6.59994% 5.2%	16.58071% 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 READING HOSPITAL AND 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	143,094,728 23,241,334	139,825,565 23,709,545	149,664,402 24,248,380	139,618,145 22,858,541	156,059,921 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	119,405,455 21,577,146	115,704,239 22,041,594	126,530,494 22,722,063	119,158,752 21,570,441	134,807,104 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	3,639,922 1,845,420	2,961,338 1,757,392	2,771,007 1,738,842	813,129 1,510,463	11,195 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	15,792,338 3,535,627	16,618,080 3,746,588	15,716,281 3,782,288	14,402,849 3,865,578	15,822,562 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	4,257,013 1,203,033	4,541,908 1,215,295	4,646,620 1,313,657	5,243,415 1,365,298	5,419,060 1,179,746
All outpatient revenue Median Click here to show/hide details	55,483,456 11,160,864	59,758,898 11,987,345	60,680,721 12,926,866	54,464,627 11,884,480	59,141,446 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	55,483,456 10,918,923	59,758,898 11,706,976	60,680,721 12,615,917	54,464,627 11,458,116	59,141,446 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	8,413,051 3,284,314	8,227,542 3,250,551	8,911,630 3,386,837	9,013,149 3,360,806	11,697,301 3,508,953
Disproportionate-share hospital (DSH) Median	3,285,289 594,888	3,319,591 595,761	3,519,918 577,894	3,072,945 542,168	3,120,010 549,667
Outlier Median	7,137,353 582,572	5,507,152 538,116	6,573,281 212,434	1,737,456 126,559	2,207,061 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	73,067,474 3,662,910	69,327,283 3,730,911	52,810,916 4,081,319	64,607,038 4,643,908	25,422,937 4,389,147
Charity care Median	3,958,713 2,654,636	4,506,067 2,940,659	4,280,675 3,380,215	4,376,705 3,488,738	4,058,270 3,233,405
Uncompensated care (UCC) Median	17,089,777 5,147,790	20,300,831 5,337,617	23,035,984 5,711,082	25,748,605 5,923,418	21,801,449 5,508,107
UCC as a % of operating expenses Median	1.99% 3.24	2.31% 3.12	2.57% 3.21	2.66% 3.3	2.32% 2.86
Total shortfall/UCC Median	90,157,251 9,489,989	89,628,114 9,424,297	75,846,900 10,120,158	90,355,643 11,171,337	47,224,386 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	345,107,271 52,142,039	340,457,567 54,485,252	367,068,697 57,395,589	413,539,722 58,830,919	307,237,468 61,722,907
Salaries as a % of operating expenses Median	40.15 36.68	38.70 36.56	40.98 36.37	42.69 35.93	32.63 35.24
Intern, resident salaries* Median	5,377,644 2,598,592	5,761,285 2,686,824	6,977,226 2,753,773	6,770,265 2,937,156	7,987,559 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	4,101,499 1,449,244	1,642,480 1,475,986	1,193,654 1,563,078	5,180 1,721,954	4,232,531 2,991,828
Contract hours, direct-care Median	54,170.00 22,725	19,518.00 23,018.5	16,387.00 24,503.48	37.00 25,026.5	40,018.37 33,786
Contract wages, direct-care Median	75.72 64.67	84.15 64.53	72.84 65.06	140.00 68.97	105.76 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.