As of the July, 2022, release via CMS

POTTSTOWN MEMORIAL MEDICAL CENTER

CMS id: 390123
1600 EAST HIGH STREET, POTTSTOWN PA 19464. County: MONTGOMERY
System: TOWER HEALTH
CBSA: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

The 211-bed, acute-care hospital had $-35,921,382 in net service to patients*, with a total profit margin of -68.17416% in fiscal year 2021, the latest year available.
It spent 2.14% of its operating expenses on uncompensated care and reported $700,521 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	273	365	366	365
Ownership	forprofit	nfp	nfp	nfp	nfp
Acute beds Median	155 118	165 118	165 119.5	165 118	165 119
Total beds Median	211 162	211 162	211 162	211 162	211 163.5
FTEs Median	811.12 788.06	807.09 793.42	867.96 806.03	848.55 787.61	674.25 804.34

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	173,885,808 150,932,746	143,061,214 158,950,878	151,597,396 168,696,998	110,892,463 163,454,693	150,950,740 186,589,412
Operating expenses Median	148,593,802 149,311,209	131,679,942 156,110,414	186,099,369 164,890,568	198,832,450 166,516,854	186,872,122 180,120,888
Net income from service 2 patients (NS2P) ? Median	25,292,006 -964,173	11,381,272 -643,601.5	-34,501,973 -116,254	-87,939,987 -5,025,862	-35,921,382 -1,284,564
NS2P margin ? Median	14.55% -0.62	7.96% -0.29	-22.76% 0.18	-79.30% -5.07	-23.80% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for POTTSTOWN MEMORIAL 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	1,677,612 5,089,215	1,329,147 4,572,541	931,953 5,268,134	5,287,358 13,092,619	1,751,622 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	0 199,009	0 206,870.5	190 194,343	151,265 249,496
⊳ 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	72,147	167,883	325,443
⊳ 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	83	0	0	0	41,294
⊳ 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	0	0	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	767	0	1,333	1	290
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	0	0	0	0
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	0	0	0	0
⊳ Line 21: Rental of vending machines	0	0	0	3,984	2,294
⊳ Line 22: Rental of hospital space	330,742	269,909	337,302	717,164	771,384
⊳ 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	1,346,020	1,059,238	521,171	4,398,136	459,652
Total income ? Median	26,969,618 6,586,430	12,710,419 6,767,106	-33,570,020 8,419,950	-82,652,629 8,094,175	-34,169,760 15,162,888
Non-operating expenses Median	0 146,289.5	1,087,984 164,857	21,249 89,880.5	160,105 106,761	69,933,800 31,473.5
Net income Median	26,969,618 6,043,842	11,622,435 5,845,112	-33,591,269 7,606,259	-82,812,734 7,283,041	-104,103,560 14,957,241
Net margin Median	15.36175% 4.62%	8.04932% 4.42%	-22.02282% 5.16%	-71.27979% 5.2%	-68.17416% 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 POTTSTOWN MEMORIAL 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	31,661,710 23,241,334	21,690,818 23,709,545	27,525,723 24,248,380	24,893,151 22,858,541	25,180,375 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	29,279,661 21,577,146	19,922,774 22,041,594	25,431,191 22,722,063	23,075,871 21,570,441	23,014,222 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	2,382,049 1,845,420	1,768,044 1,757,392	2,094,532 1,738,842	1,817,280 1,510,463	2,166,153 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	17,713,334 11,160,864	13,429,114 11,987,345	17,553,108 12,926,866	15,336,663 11,884,480	15,825,869 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	17,713,334 10,918,923	13,429,114 11,706,976	17,553,108 12,615,917	15,336,663 11,458,116	15,825,869 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	0 3,284,314	0 3,250,551	0 3,386,837	0 3,360,806	0 3,508,953
Disproportionate-share hospital (DSH) Median	376,332 594,888	221,760 595,761	218,118 577,894	307,577 542,168	255,726 549,667
Outlier Median	797,175 582,572	565,941 538,116	735,726 212,434	33,175 126,559	729,780 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	211 3,662,910	5,574,582 3,730,911	3,830,654 4,081,319	0 4,643,908	700,521 4,389,147
Charity care Median	589,245 2,654,636	63,360 2,940,659	490,259 3,380,215	429,490 3,488,738	455,945 3,233,405
Uncompensated care (UCC) Median	1,912,908 5,147,790	309,878 5,337,617	3,272,717 5,711,082	5,102,261 5,923,418	3,996,866 5,508,107
UCC as a % of operating expenses Median	1.29% 3.24	0.24% 3.12	1.76% 3.21	2.57% 3.3	2.14% 2.86
Total shortfall/UCC Median	1,913,119 9,489,989	5,884,460 9,424,297	7,103,371 10,120,158	5,102,261 11,171,337	4,697,387 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	52,874,046 52,142,039	41,273,926 54,485,252	58,903,773 57,395,589	60,416,981 58,830,919	50,335,204 61,722,907
Salaries as a % of operating expenses Median	35.58 36.68	31.34 36.56	31.65 36.37	30.39 35.93	26.94 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	1,120,473 1,449,244	1,633,355 1,475,986	3,449,212 1,563,078	2,190,966 1,721,954	1,193,055 2,991,828
Contract hours, direct-care Median	15,762.00 22,725	23,723.00 23,018.5	50,409.10 24,503.48	33,322.91 25,026.5	19,219.08 33,786
Contract wages, direct-care Median	71.09 64.67	68.85 64.53	68.42 65.06	65.75 68.97	62.08 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.