As of the July, 2022, release via CMS

ARIA HEALTH

CMS id: 390115
KNIGHTS & RED LION ROADS, PHILADELPHIA PA 19114. County: PHILADELPHIA
System: AHS
CBSA: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

The 457-bed, acute-care hospital had $-772,391 in net service to patients*, with a total profit margin of 9.46727% in fiscal year 2021, the latest year available.
It spent 2.17% of its operating expenses on uncompensated care and reported $6,580,283 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	383 118	383 118	383 119.5	383 118	390 119
Total beds Median	450 162	450 162	450 162	450 162	457 163.5
FTEs Median	2,651.76 788.06	2,499.06 793.42	2,547.55 806.03	2,731.00 787.61	2,601.24 804.34

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	466,182,839 150,932,746	451,998,754 158,950,878	486,784,027 168,696,998	497,518,593 163,454,693	547,906,811 186,589,412
Operating expenses Median	463,046,201 149,311,209	455,443,734 156,110,414	478,077,958 164,890,568	542,538,154 166,516,854	548,679,202 180,120,888
Net income from service 2 patients (NS2P) ? Median	3,136,638 -964,173	-3,444,980 -643,601.5	8,706,069 -116,254	-45,019,561 -5,025,862	-772,391 -1,284,564
NS2P margin ? Median	0.67% -0.62	-0.76% -0.29	1.79% 0.18	-9.05% -5.07	-0.14% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for ARIA HEALTH 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	75,648,193 5,089,215	65,833,452 4,572,541	1,245,977 5,268,134	79,927,120 13,092,619	58,149,382 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	0 199,009	0 206,870.5	0 194,343	0 249,496
⊳ Line 7: Investments ? ⊳ Median	17,993,230 299,524	774,459 188,688.5	8,365,985 370,813	19,093,199 309,361.5	7,114,189 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	784,055	385,961	671,551	489,776	576,806
⊳ Line 11: Rebates and refunds of expenses	0	0	105,719	0	0
⊳ 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	1,856,356	1,853,373	1,849,389	1,684,409	1,471,311
⊳ 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	23,038
⊳ Line 17: Revenue from sale of drugs to other than patients	0	0	0	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	16,863	-4,345	1,121	2,194	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	4,071,172	3,129,247	1,182,005	0	0
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	4,716	7,900	0	0	0
⊳ Line 21: Rental of vending machines	30,226	0	0	0	0
⊳ Line 22: Rental of hospital space	644,862	378,864	427,166	0	0
⊳ Line 23: Gov appropriations ? ⊳ Median	12,594,514 1,017,693	12,176,873 983,261.5	0 1,173,286	0 1,987,202	0 1,597,664
⊳ Sum Line 24	37,652,167	47,131,019	-11,356,959	58,657,542	48,964,038
Total income ? Median	78,784,831 6,586,430	62,388,472 6,767,106	9,952,046 8,419,950	34,907,559 8,094,175	57,376,991 15,162,888
Non-operating expenses Median	0 146,289.5	-4 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	78,784,831 6,043,842	62,388,476 5,845,112	9,952,046 7,606,259	34,907,559 7,283,041	57,376,991 14,957,241
Net margin Median	14.54048% 4.62%	12.04801% 4.42%	2.03923% 5.16%	6.04517% 5.2%	9.46727% 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 ARIA HEALTH 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	96,988,402 23,241,334	93,240,206 23,709,545	97,823,109 24,248,380	98,068,064 22,858,541	99,934,333 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	96,988,402 21,577,146	93,240,206 22,041,594	97,823,109 22,722,063	98,068,064 21,570,441	99,934,333 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	24,201,271 11,160,864	23,813,567 11,987,345	25,338,047 12,926,866	23,165,315 11,884,480	25,075,326 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	22,928,465 10,918,923	23,813,567 11,706,976	25,338,047 12,615,917	23,165,315 11,458,116	25,075,326 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	1,272,806 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	10,947,458 3,284,314	10,654,818 3,250,551	11,593,095 3,386,837	11,562,762 3,360,806	11,548,550 3,508,953
Disproportionate-share hospital (DSH) Median	2,889,686 594,888	2,841,030 595,761	2,817,835 577,894	2,968,774 542,168	3,100,648 549,667
Outlier Median	1,400,643 582,572	688,384 538,116	887,817 212,434	187,732 126,559	131,457 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	0 3,662,910	1,822,267 3,730,911	0 4,081,319	1,632,694 4,643,908	6,580,283 4,389,147
Charity care Median	12,303,224 2,654,636	14,673,371 2,940,659	10,905,707 3,380,215	11,005,067 3,488,738	7,969,371 3,233,405
Uncompensated care (UCC) Median	21,356,431 5,147,790	19,323,643 5,337,617	16,806,081 5,711,082	15,068,591 5,923,418	11,916,879 5,508,107
UCC as a % of operating expenses Median	4.61% 3.24	4.24% 3.12	3.52% 3.21	2.78% 3.3	2.17% 2.86
Total shortfall/UCC Median	21,356,431 9,489,989	21,145,910 9,424,297	16,806,081 10,120,158	16,701,285 11,171,337	18,497,162 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	181,279,018 52,142,039	171,836,629 54,485,252	181,881,968 57,395,589	210,203,354 58,830,919	217,156,770 61,722,907
Salaries as a % of operating expenses Median	40.53 36.68	38.97 36.56	38.04 36.37	40.48 35.93	40.59 35.24
Intern, resident salaries* Median	7,135,644 2,598,592	6,894,199 2,686,824	7,669,229 2,753,773	6,863,264 2,937,156	6,995,412 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	317,715 1,449,244	196,529 1,475,986	0 1,563,078	761,553 1,721,954	6,950,689 2,991,828
Contract hours, direct-care Median	5,229.00 22,725	2,888.00 23,018.5	0.00 24,503.48	12,054.00 25,026.5	43,917.00 33,786
Contract wages, direct-care Median	60.76 64.67	68.05 64.53	0.00 65.06	63.18 68.97	158.27 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.