As of the July, 2022, release via CMS

PAOLI HOSPITAL

CMS id: 390153
255 W. LANCASTER AVE., PAOLI PA 19301. County: CHESTER
System: MAIN LINE HEALTH INC.
CBSA: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

The 231-bed, acute-care hospital had $-4,171,084 in net service to patients*, with a total profit margin of 11.66186% in fiscal year 2021, the latest year available.
It spent 2.09% of its operating expenses on uncompensated care and reported $6,527,995 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	194 118	194 118	194 119.5	194 118	194 119
Total beds Median	231 162	231 162	231 162	231 162	231 163.5
FTEs Median	1,131.83 788.06	1,108.33 793.42	1,097.83 806.03	1,161.86 787.61	1,209.94 804.34

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	305,729,603 150,932,746	302,074,183 158,950,878	305,382,007 168,696,998	306,676,773 163,454,693	332,621,035 186,589,412
Operating expenses Median	292,150,833 149,311,209	286,331,259 156,110,414	295,065,040 164,890,568	315,778,304 166,516,854	336,792,119 180,120,888
Net income from service 2 patients (NS2P) ? Median	13,578,770 -964,173	15,742,924 -643,601.5	10,316,967 -116,254	-9,101,531 -5,025,862	-4,171,084 -1,284,564
NS2P margin ? Median	4.44% -0.62	5.21% -0.29	3.38% 0.18	-2.97% -5.07	-1.25% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for PAOLI 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	10,784,271 5,089,215	12,164,610 4,572,541	12,402,741 5,268,134	34,331,849 13,092,619	48,632,337 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	1,032,523 224,999	1,716,620 199,009	1,267,494 206,870.5	504,233 194,343	809,378 249,496
⊳ Line 7: Investments ? ⊳ Median	2,557,684 299,524	3,221,843 188,688.5	4,543,507 370,813	4,166,787 309,361.5	2,153,608 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	41,449	36,390	26,633	28,254	24,773
⊳ Line 11: Rebates and refunds of expenses	2,691,935	2,656,087	1,962,567	2,461,079	1,961,034
⊳ 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	1,149,869	1,164,129	1,181,027	936,269	689,303
⊳ 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	3,316,007	3,369,541	3,439,979	3,361,550	3,817,180
⊳ 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	-5,196	--	-18,466	22,873,677	39,177,061
Total income ? Median	24,363,041 6,586,430	27,907,534 6,767,106	22,719,708 8,419,950	25,230,318 8,094,175	44,461,253 15,162,888
Non-operating expenses Median	-6,270,923 146,289.5	-8,412,178 164,857	-10,799,106 89,880.5	0 106,761	0 31,473.5
Net income Median	30,633,964 6,043,842	36,319,712 5,845,112	33,518,814 7,606,259	25,230,318 7,283,041	44,461,253 14,957,241
Net margin Median	9.67855% 4.62%	11.55800% 4.42%	10.54765% 5.16%	7.39873% 5.2%	11.66186% 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 PAOLI 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	46,015,917 23,241,334	48,066,788 23,709,545	51,739,998 24,248,380	52,432,724 22,858,541	55,821,160 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	46,015,917 21,577,146	48,066,788 22,041,594	51,739,998 22,722,063	52,432,724 21,570,441	55,821,160 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	23,103,087 11,160,864	21,256,697 11,987,345	24,138,957 12,926,866	23,170,866 11,884,480	26,836,109 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	23,103,087 10,918,923	21,256,697 11,706,976	24,138,957 12,615,917	23,170,866 11,458,116	26,836,109 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	0 594,888	0 595,761	0 577,894	0 542,168	0 549,667
Outlier Median	829,504 582,572	1,039,021 538,116	1,010,276 212,434	53,585 126,559	54,176 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	2,158,365 3,662,910	1,462,096 3,730,911	2,202,229 4,081,319	5,335,076 4,643,908	6,527,995 4,389,147
Charity care Median	5,515,066 2,654,636	16,283,846 2,940,659	19,265,738 3,380,215	16,857,243 3,488,738	5,620,245 3,233,405
Uncompensated care (UCC) Median	7,193,883 5,147,790	17,763,068 5,337,617	20,873,614 5,711,082	18,621,736 5,923,418	7,054,900 5,508,107
UCC as a % of operating expenses Median	2.46% 3.24	6.20% 3.12	7.07% 3.21	5.90% 3.3	2.09% 2.86
Total shortfall/UCC Median	9,352,248 9,489,989	19,225,164 9,424,297	23,075,843 10,120,158	23,956,812 11,171,337	13,582,895 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	86,723,085 52,142,039	85,652,321 54,485,252	87,344,277 57,395,589	96,212,960 58,830,919	100,843,065 61,722,907
Salaries as a % of operating expenses Median	29.92 36.68	29.91 36.56	29.60 36.37	30.47 35.93	29.94 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	0 1,449,244	285,469 1,475,986	559,116 1,563,078	488,308 1,721,954	764,493 2,991,828
Contract hours, direct-care Median	0.00 22,725	6,111.00 23,018.5	12,901.00 24,503.48	7,080.05 25,026.5	11,267.00 33,786
Contract wages, direct-care Median	0.00 64.67	46.71 64.53	43.34 65.06	68.97 68.97	67.85 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.