As of the July, 2022, release via CMS

LEHIGH VALLEY

CMS id: 390133
2100 MACK BLVD. 4TH FLOOR FINANCE, ALLENTOWN PA 18105. County: LEHIGH
System: --
CBSA: Allentown-Bethlehem-Easton, PA-NJ

The 1,237-bed, acute-care hospital had $-115,903,840 in net service to patients*, with a total profit margin of 4.64244% in fiscal year 2021, the latest year available.
It spent 1.44% of its operating expenses on uncompensated care and reported $16,332,915 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	636 118	822 118	830 119.5	842 118	864 119
Total beds Median	929 162	1,167 162	1,199 162	1,211 162	1,237 163.5
FTEs Median	6,348.00 788.06	6,492.33 793.42	8,102.87 806.03	7,922.83 787.61	8,203.95 804.34

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	1,402,001,000 150,932,746	2,368,735,849 158,950,878	1,958,508,032 168,696,998	1,956,196,722 163,454,693	2,085,604,745 186,589,412
Operating expenses Median	1,425,176,393 149,311,209	1,589,231,581 156,110,414	1,980,563,895 164,890,568	2,051,442,016 166,516,854	2,201,508,585 180,120,888
Net income from service 2 patients (NS2P) ? Median	-23,175,393 -964,173	779,504,268 -643,601.5	-22,055,863 -116,254	-95,245,294 -5,025,862	-115,903,840 -1,284,564
NS2P margin ? Median	-1.65% -0.62	32.91% -0.29	-1.13% 0.18	-4.87% -5.07	-5.56% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for LEHIGH VALLEY 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	155,211,206 5,089,215	155,211,206 4,572,541	165,907,257 5,268,134	216,288,370 13,092,619	223,320,100 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	7,471,706 224,999	7,471,706 199,009	8,822,898 206,870.5	9,124,769 194,343	8,569,025 249,496
⊳ Line 7: Investments ? ⊳ Median	3,490,664 299,524	3,490,664 188,688.5	20,827,455 370,813	34,282,079 309,361.5	47,546,713 375,329
⊳ 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	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	0	0	0	0	0
⊳ 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	0	0	0	0	0
⊳ 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	0	0
⊳ Line 22: Rental of hospital space	9,818,197	9,818,197	15,634,810	18,137,293	18,708,554
⊳ 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	134,430,639	134,430,639	120,622,094	154,744,229	148,495,808
Total income ? Median	132,035,813 6,586,430	934,715,474 6,767,106	143,851,394 8,419,950	121,043,076 8,094,175	107,416,260 15,162,888
Non-operating expenses Median	67,173,813 146,289.5	67,173,813 164,857	0 89,880.5	3,073,713 106,761	225,906 31,473.5
Net income Median	64,862,000 6,043,842	867,541,661 5,845,112	143,851,394 7,606,259	117,969,363 7,283,041	107,190,354 14,957,241
Net margin Median	4.16526% 4.62%	34.37242% 4.42%	6.77134% 5.16%	5.43016% 5.2%	4.64244% 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 LEHIGH VALLEY 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	211,670,157 23,241,334	214,990,298 23,709,545	299,871,386 24,248,380	284,330,337 22,858,541	308,487,626 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	194,495,317 21,577,146	198,914,206 22,041,594	276,948,499 22,722,063	262,859,279 21,570,441	285,012,917 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	2,183,651 1,845,420	2,352,275 1,757,392	2,203,807 1,738,842	2,954,100 1,510,463	2,161,532 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	10,434,161 3,535,627	10,562,324 3,746,588	16,609,174 3,782,288	14,812,876 3,865,578	18,069,641 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	4,557,028 1,203,033	3,161,493 1,215,295	4,109,906 1,313,657	3,704,082 1,365,298	3,243,536 1,179,746
All outpatient revenue Median Click here to show/hide details	96,624,355 11,160,864	111,092,195 11,987,345	152,038,698 12,926,866	150,463,744 11,884,480	164,788,482 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	87,203,852 10,918,923	101,304,783 11,706,976	142,552,680 12,615,917	141,558,903 11,458,116	157,597,333 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	9,420,503 1,282,808	9,787,412 1,407,728	9,486,018 1,341,512	8,904,841 1,407,046	7,191,149 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	20,864,757 3,284,314	21,179,543 3,250,551	33,792,260 3,386,837	32,885,681 3,360,806	35,121,590 3,508,953
Disproportionate-share hospital (DSH) Median	4,033,039 594,888	3,923,556 595,761	5,046,033 577,894	5,161,962 542,168	5,382,249 549,667
Outlier Median	12,473,525 582,572	12,479,251 538,116	13,052,652 212,434	2,983,198 126,559	2,025,824 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	11,577,640 3,662,910	29,567,767 3,730,911	22,198,263 4,081,319	22,780,377 4,643,908	16,332,915 4,389,147
Charity care Median	20,080,127 2,654,636	22,199,929 2,940,659	21,380,190 3,380,215	21,319,033 3,488,738	20,108,777 3,233,405
Uncompensated care (UCC) Median	25,969,626 5,147,790	27,871,755 5,337,617	29,008,070 5,711,082	32,053,177 5,923,418	31,767,797 5,508,107
UCC as a % of operating expenses Median	1.82% 3.24	1.75% 3.12	1.46% 3.21	1.56% 3.3	1.44% 2.86
Total shortfall/UCC Median	37,547,266 9,489,989	57,439,522 9,424,297	51,206,333 10,120,158	54,833,554 11,171,337	48,100,712 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	431,092,890 52,142,039	475,451,670 54,485,252	576,433,165 57,395,589	618,251,195 58,830,919	662,845,391 61,722,907
Salaries as a % of operating expenses Median	29.72 36.68	29.45 36.56	29.10 36.37	30.14 35.93	30.11 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	658,482 1,449,244	3,426,516 1,475,986	922,173 1,563,078	2,701,459 1,721,954	1,607,645 2,991,828
Contract hours, direct-care Median	7,238.00 22,725	41,483.00 23,018.5	9,642.00 24,503.48	33,128.00 25,026.5	18,335.00 33,786
Contract wages, direct-care Median	90.98 64.67	82.60 64.53	95.64 65.06	81.55 68.97	87.68 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.