As of the July, 2022, release via CMS

WESTERN PENNSYLVANIA HOSPITAL

CMS id: 390090
4800 FRIENDSHIP AVENUE, PITTSBURGH PA 15224. County: ALLEGHENY
System: WEST PENN ALLEGHENY HEALTH SYSTEM HO
CBSA: Pittsburgh, PA

The 288-bed, acute-care hospital had $119,425,917 in net service to patients*, with a total profit margin of 21.38677% in fiscal year 2021, the latest year available.
It spent 0.54% of its operating expenses on uncompensated care and reported $6,020,761 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	173 118	124 118	124 119.5	124 118	124 119
Total beds Median	317 162	270 162	293 162	288 162	288 163.5
FTEs Median	1,714.88 788.06	1,488.16 793.42	2,029.95 806.03	2,775.15 787.61	3,308.66 804.34

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	456,067,884 150,932,746	528,247,045 158,950,878	605,613,843 168,696,998	618,399,019 163,454,693	686,832,096 186,589,412
Operating expenses Median	386,374,520 149,311,209	412,330,646 156,110,414	458,559,438 164,890,568	506,877,930 166,516,854	567,406,179 180,120,888
Net income from service 2 patients (NS2P) ? Median	69,693,364 -964,173	115,916,399 -643,601.5	147,054,405 -116,254	111,521,089 -5,025,862	119,425,917 -1,284,564
NS2P margin ? Median	15.28% -0.62	21.94% -0.29	24.28% 0.18	18.03% -5.07	17.39% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for WESTERN PENNSYLVANIA 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	18,709,016 5,089,215	21,966,447 4,572,541	25,844,050 5,268,134	37,403,243 13,092,619	34,937,198 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	59,263 199,009	99,750 206,870.5	48,758 194,343	74,173 249,496
⊳ Line 7: Investments ? ⊳ Median	59,588 299,524	26,316 188,688.5	11,750 370,813	7,779 309,361.5	6,406 375,329
⊳ 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	1,299,824	1,389,894	1,337,603	1,122,337	969,786
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	1,837,834	1,979,679	2,113,519	1,945,550	1,467,225
⊳ Line 15: Revenue from rental of living quarters	2,199,753	2,212,766	3,081,422	3,185,692	3,178,105
⊳ 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	-11,094	6,140	0	4,857,636	11,228,383
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	0	0	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	1,739,131	983,779	1,311,426	1,457,998	1,338,352
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	0	0	0	0
⊳ Line 21: Rental of vending machines	0	0	0	61,048	49,226
⊳ Line 22: Rental of hospital space	0	0	0	0	0
⊳ 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	11,583,980	15,308,610	17,888,580	24,716,445	16,625,542
Total income ? Median	88,402,380 6,586,430	137,882,846 6,767,106	172,898,455 8,419,950	148,924,332 8,094,175	154,363,115 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	88,402,380 6,043,842	137,882,846 5,845,112	172,898,455 7,606,259	148,924,332 7,283,041	154,363,115 14,957,241
Net margin Median	18.61977% 4.62%	25.05988% 4.42%	27.38084% 5.16%	22.70872% 5.2%	21.38677% 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 WESTERN PENNSYLVANIA 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	28,084,465 23,241,334	29,556,604 23,709,545	29,398,662 24,248,380	26,122,823 22,858,541	30,528,057 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	25,129,995 21,577,146	26,074,111 22,041,594	25,501,688 22,722,063	22,046,958 21,570,441	25,503,762 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	2,954,470 3,535,627	3,482,493 3,746,588	3,896,974 3,782,288	4,075,865 3,865,578	5,024,295 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	28,125,104 11,160,864	30,462,074 11,987,345	29,600,685 12,926,866	28,821,929 11,884,480	31,439,510 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	28,125,104 10,918,923	30,462,074 11,706,976	29,600,685 12,615,917	28,821,929 11,458,116	31,439,510 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	4,714,135 3,284,314	4,959,605 3,250,551	4,773,309 3,386,837	4,447,155 3,360,806	5,068,178 3,508,953
Disproportionate-share hospital (DSH) Median	709,876 594,888	610,322 595,761	607,900 577,894	566,360 542,168	585,607 549,667
Outlier Median	1,448,141 582,572	1,665,768 538,116	1,551,625 212,434	730,691 126,559	1,303,672 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	6,975,291 3,662,910	6,815,844 3,730,911	4,452,829 4,081,319	3,261,511 4,643,908	6,020,761 4,389,147
Charity care Median	3,862,156 2,654,636	3,258,713 2,940,659	3,578,241 3,380,215	1,203,243 3,488,738	2,046,028 3,233,405
Uncompensated care (UCC) Median	4,675,159 5,147,790	4,767,027 5,337,617	5,280,458 5,711,082	2,130,309 5,923,418	3,089,023 5,508,107
UCC as a % of operating expenses Median	1.21% 3.24	1.16% 3.12	1.15% 3.21	0.42% 3.3	0.54% 2.86
Total shortfall/UCC Median	11,650,450 9,489,989	11,582,871 9,424,297	9,733,287 10,120,158	5,391,820 11,171,337	9,109,784 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	89,623,290 52,142,039	97,592,576 54,485,252	106,513,509 57,395,589	113,870,119 58,830,919	113,797,318 61,722,907
Salaries as a % of operating expenses Median	23.20 36.68	23.67 36.56	23.23 36.37	22.46 35.93	20.06 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	926,262 1,449,244	434,606 1,475,986	340,589 1,563,078	482,526 1,721,954	4,159,105 2,991,828
Contract hours, direct-care Median	13,364.00 22,725	6,101.00 23,018.5	4,464.00 24,503.48	6,135.00 25,026.5	34,832.00 33,786
Contract wages, direct-care Median	69.31 64.67	71.24 64.53	76.30 65.06	78.65 68.97	119.40 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.