As of the July, 2022, release via CMS

UPMC PINNACLE HOSPITALS

CMS id: 390067
409 S. 2ND STREET, HARRISBURG PA 17101. County: DAUPHIN
System: UPMC
CBSA: Harrisburg-Carlisle, PA

The 587-bed, acute-care hospital had $204,753,325 in net service to patients*, with a total profit margin of 17.87198% in fiscal year 2021, the latest year available.
It spent 1.75% of its operating expenses on uncompensated care and reported $2,138,142 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	543 118	543 118	433 119.5	475 118	507 119
Total beds Median	640 162	640 162	493 162	563 162	587 163.5
FTEs Median	3,856.06 788.06	3,981.39 793.42	3,977.16 806.03	3,812.11 787.61	4,089.25 804.34

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	887,348,437 150,932,746	963,131,109 158,950,878	1,031,145,579 168,696,998	990,213,319 163,454,693	1,135,307,331 186,589,412
Operating expenses Median	804,521,157 149,311,209	803,600,687 156,110,414	883,592,762 164,890,568	864,543,034 166,516,854	930,554,006 180,120,888
Net income from service 2 patients (NS2P) ? Median	82,827,280 -964,173	159,530,422 -643,601.5	147,552,817 -116,254	125,670,285 -5,025,862	204,753,325 -1,284,564
NS2P margin ? Median	9.33% -0.62	16.56% -0.29	14.31% 0.18	12.69% -5.07	18.04% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for UPMC PINNACLE HOSPITALS 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	22,408,720 5,089,215	28,519,984 4,572,541	29,622,881 5,268,134	-104,596,479 13,092,619	-2,254,336 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	2,633,149 224,999	1,745,513 199,009	2,860,770 206,870.5	2,654,287 194,343	2,959,217 249,496
⊳ Line 7: Investments ? ⊳ Median	0 299,524	0 188,688.5	0 370,813	0 309,361.5	-84,973,818 375,329
⊳ 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	153,313	106,863	272,092	138,705	84,678
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	571,604	592,194	706,868	590,887	812,827
⊳ 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	3,142,608	3,249,402	3,067,644	2,928,395
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	0	0	65,650
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	14,303	8,119	22,546	18,980	12,216
⊳ 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	13,892,143	13,627,656	11,719,096	12,984,167	16,341,118
⊳ Line 23: Gov appropriations ? ⊳ Median	0 1,017,693	0 983,261.5	0 1,173,286	0 1,987,202	105,519 1,597,664
⊳ Sum Line 24	5,144,208	9,297,031	10,792,107	-124,051,149	59,409,862
Total income ? Median	105,236,000 6,586,430	188,050,406 6,767,106	177,175,698 8,419,950	21,073,806 8,094,175	202,498,989 15,162,888
Non-operating expenses Median	0 146,289.5	-13,085,636 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	105,236,000 6,043,842	201,136,042 5,845,112	177,175,698 7,606,259	21,073,806 7,283,041	202,498,989 14,957,241
Net margin Median	11.56748% 4.62%	20.28294% 4.42%	16.70258% 5.16%	2.37956% 5.2%	17.87198% 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 PINNACLE HOSPITALS 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	140,650,980 23,241,334	147,449,947 23,709,545	152,185,110 24,248,380	154,208,034 22,858,541	159,760,330 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	140,650,980 21,577,146	147,449,947 22,041,594	152,185,110 22,722,063	154,208,034 21,570,441	159,760,330 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	43,077,267 11,160,864	47,748,975 11,987,345	51,887,579 12,926,866	49,885,815 11,884,480	57,440,287 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	43,077,267 10,918,923	47,748,975 11,706,976	51,887,579 12,615,917	49,885,815 11,458,116	57,440,287 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	15,794,117 3,284,314	17,337,551 3,250,551	17,993,461 3,386,837	20,959,330 3,360,806	22,193,142 3,508,953
Disproportionate-share hospital (DSH) Median	2,611,362 594,888	2,523,582 595,761	2,551,628 577,894	2,492,439 542,168	2,433,692 549,667
Outlier Median	2,743,262 582,572	2,386,120 538,116	2,740,517 212,434	492,598 126,559	593,859 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	21,079,322 3,662,910	15,247,239 3,730,911	24,897,532 4,081,319	15,732,192 4,643,908	2,138,142 4,389,147
Charity care Median	10,141,191 2,654,636	5,534,042 2,940,659	12,394,744 3,380,215	6,401,666 3,488,738	8,416,974 3,233,405
Uncompensated care (UCC) Median	25,584,004 5,147,790	11,467,124 5,337,617	25,588,853 5,711,082	7,257,870 5,923,418	16,322,132 5,508,107
UCC as a % of operating expenses Median	3.18% 3.24	1.43% 3.12	2.90% 3.21	0.84% 3.3	1.75% 2.86
Total shortfall/UCC Median	46,663,326 9,489,989	26,714,363 9,424,297	50,486,385 10,120,158	22,990,062 11,171,337	18,460,274 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	249,004,401 52,142,039	258,787,848 54,485,252	268,452,377 57,395,589	274,426,161 58,830,919	297,696,592 61,722,907
Salaries as a % of operating expenses Median	30.95 36.68	32.20 36.56	30.38 36.37	31.93 35.93	31.99 35.24
Intern, resident salaries* Median	9,775,509 2,598,592	10,865,632 2,686,824	12,281,485 2,753,773	14,481,293 2,937,156	15,084,892 2,909,848
Contract intern, resident salaries* Median	1,042,181 1,251,927	1,074,879 1,186,494	1,013,394 1,204,885	837,752 1,279,653	545,785 1,469,317
Contract adjusted salaries, direct-care Median	1,230,295 1,449,244	1,622,957 1,475,986	1,679,598 1,563,078	1,900,086 1,721,954	9,653,158 2,991,828
Contract hours, direct-care Median	30,267.00 22,725	31,394.20 23,018.5	31,627.00 24,503.48	34,927.75 25,026.5	698,548.39 33,786
Contract wages, direct-care Median	40.65 64.67	51.70 64.53	53.11 65.06	54.40 68.97	13.82 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.