As of the July, 2022, release via CMS

NAZARETH HOSPITAL-PHILA PA

CMS id: 390204
2601 HOLME AVENUE, PHILADELPHIA PA 19152. County: PHILADELPHIA
System: NAME: MERCY HEALTH SYSTEM
CBSA: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

The 200-bed, acute-care hospital had $-1,396,325 in net service to patients*, with a total profit margin of 1.74069% in fiscal year 2021, the latest year available.
It spent 7.76% of its operating expenses on uncompensated care and reported $3,760,024 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	108 118	115 118	138 119.5	138 118	108 119
Total beds Median	174 162	188 162	200 162	200 162	200 163.5
FTEs Median	779.30 788.06	789.80 793.42	763.01 806.03	806.51 787.61	717.75 804.34

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	149,722,070 150,932,746	145,578,333 158,950,878	151,532,554 168,696,998	146,360,243 163,454,693	155,921,095 186,589,412
Operating expenses Median	140,262,979 149,311,209	145,909,284 156,110,414	153,839,791 164,890,568	159,247,649 166,516,854	157,317,420 180,120,888
Net income from service 2 patients (NS2P) ? Median	9,459,091 -964,173	-330,951 -643,601.5	-2,307,237 -116,254	-12,887,406 -5,025,862	-1,396,325 -1,284,564
NS2P margin ? Median	6.32% -0.62	-0.23% -0.29	-1.52% 0.18	-8.81% -5.07	-0.90% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for NAZARETH HOSPITAL-PHILA PA 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	-9,956,594 5,089,215	2,984,686 4,572,541	3,291,894 5,268,134	13,921,428 13,092,619	3,618,388 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	25,330 199,009	0 206,870.5	4,607 194,343	45,453 249,496
⊳ Line 7: Investments ? ⊳ Median	0 299,524	597,563 188,688.5	261,330 370,813	413,681 309,361.5	1,202,604 375,329
⊳ 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	530	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	424,139	486,858	443,965	266,261
⊳ 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	4,570	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	16,176	17,193	281,394	279,611
⊳ Line 22: Rental of hospital space	0	912,151	779,293	454,602	466,746
⊳ Line 23: Gov appropriations ? ⊳ Median	0 1,017,693	0 983,261.5	0 1,173,286	11,882 1,987,202	0 1,597,664
⊳ Sum Line 24	-9,956,594	1,004,757	1,746,690	12,311,297	1,357,713
Total income ? Median	-497,503 6,586,430	2,653,735 6,767,106	984,657 8,419,950	1,034,022 8,094,175	2,222,063 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	234,930 89,880.5	0 106,761	-555,030 31,473.5
Net income Median	-497,503 6,043,842	2,653,735 5,845,112	749,727 7,606,259	1,034,022 7,283,041	2,777,093 14,957,241
Net margin Median	-0.35596% 4.62%	1.78627% 4.42%	0.48424% 5.16%	0.64513% 5.2%	1.74069% 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 NAZARETH HOSPITAL-PHILA PA 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	27,963,937 23,241,334	32,243,834 23,709,545	34,319,967 24,248,380	35,706,840 22,858,541	34,128,670 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	24,629,223 21,577,146	28,978,401 22,041,594	30,454,153 22,722,063	32,460,676 21,570,441	31,974,914 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	1,794,724 3,535,627	2,049,551 3,746,588	2,210,009 3,782,288	1,720,232 3,865,578	1,265,383 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	1,539,990 1,203,033	1,215,882 1,215,295	1,655,805 1,313,657	1,525,932 1,365,298	888,373 1,179,746
All outpatient revenue Median Click here to show/hide details	7,846,658 11,160,864	7,573,684 11,987,345	7,566,397 12,926,866	7,040,635 11,884,480	5,439,489 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	7,846,658 10,918,923	7,573,684 11,706,976	7,566,397 12,615,917	7,040,635 11,458,116	5,439,489 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	3,075,151 3,250,551	4,730,614 3,386,837	5,485,777 3,360,806	6,327,048 3,508,953
Disproportionate-share hospital (DSH) Median	925,274 594,888	1,043,127 595,761	1,024,365 577,894	1,014,945 542,168	1,060,523 549,667
Outlier Median	232,902 582,572	751,962 538,116	572,933 212,434	102,652 126,559	102,030 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	3,488,017 3,662,910	995,980 3,730,911	4,009,836 4,081,319	1,291,940 4,643,908	3,760,024 4,389,147
Charity care Median	3,512,116 2,654,636	3,261,671 2,940,659	2,816,023 3,380,215	105,901 3,488,738	9,321,259 3,233,405
Uncompensated care (UCC) Median	6,690,350 5,147,790	6,219,139 5,337,617	5,141,073 5,711,082	391,075 5,923,418	12,209,037 5,508,107
UCC as a % of operating expenses Median	4.77% 3.24	4.26% 3.12	3.34% 3.21	0.25% 3.3	7.76% 2.86
Total shortfall/UCC Median	10,178,367 9,489,989	7,215,119 9,424,297	9,150,909 10,120,158	1,683,015 11,171,337	15,969,061 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	55,373,891 52,142,039	57,703,693 54,485,252	59,633,358 57,395,589	60,802,387 58,830,919	59,994,459 61,722,907
Salaries as a % of operating expenses Median	39.48 36.68	39.55 36.56	38.76 36.37	38.18 35.93	38.14 35.24
Intern, resident salaries* Median	0 2,598,592	1,292,328 2,686,824	2,198,695 2,753,773	2,967,033 2,937,156	4,242,822 2,909,848
Contract intern, resident salaries* Median	0 1,251,927	0 1,186,494	297,840 1,204,885	0 1,279,653	0 1,469,317
Contract adjusted salaries, direct-care Median	198,707 1,449,244	6,024,711 1,475,986	570,110 1,563,078	121,511 1,721,954	1,011,838 2,991,828
Contract hours, direct-care Median	2,057.00 22,725	63,650.00 23,018.5	7,772.00 24,503.48	1,212.00 25,026.5	6,636.00 33,786
Contract wages, direct-care Median	96.60 64.67	94.65 64.53	73.35 65.06	100.26 68.97	152.48 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.