As of the July, 2022, release via CMS

MILTON S. HERSHEY MEDICAL CENTER

CMS id: 390256
500 UNIVERSITY DRIVE, HERSHEY PA 17033. County: DAUPHIN
System: PENN STATE HEALTH
CBSA: Harrisburg-Carlisle, PA

The 625-bed, acute-care hospital had $6,374,657 in net service to patients*, with a total profit margin of 11.61336% in fiscal year 2021, the latest year available.
It spent 1.80% of its operating expenses on uncompensated care and reported $42,755,488 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	421 118	421 118	421 119.5	341 118	426 119
Total beds Median	548 162	548 162	548 162	525 162	625 163.5
FTEs Median	7,141.48 788.06	6,738.61 793.42	6,601.51 806.03	6,890.20 787.61	7,225.62 804.34

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	1,439,352,567 150,932,746	1,501,702,141 158,950,878	1,645,037,798 168,696,998	1,668,479,358 163,454,693	1,842,060,082 186,589,412
Operating expenses Median	1,368,132,487 149,311,209	1,352,509,981 156,110,414	1,408,632,415 164,890,568	1,683,283,417 166,516,854	1,835,685,425 180,120,888
Net income from service 2 patients (NS2P) ? Median	71,220,080 -964,173	149,192,160 -643,601.5	236,405,383 -116,254	-14,804,059 -5,025,862	6,374,657 -1,284,564
NS2P margin ? Median	4.95% -0.62	9.93% -0.29	14.37% 0.18	-0.89% -5.07	0.35% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MILTON S. HERSHEY 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	70,057,118 5,089,215	89,520,670 4,572,541	115,880,542 5,268,134	217,981,330 13,092,619	234,820,917 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	5,100,312 299,524	5,000,260 188,688.5	-5,759,271 370,813	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	0	0	0
⊳ Line 12: Parking lot receipts	17,935	16,870	12,055	13,062	7,353
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	50,754	45,143	47,005	175,212	205,619
⊳ 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	64,503,772	82,302,870
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	0	0	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	8,950	10,740	8,375	7,855	10,510
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	722,767	768,161	803,355	589,262	492,073
⊳ Line 21: Rental of vending machines	0	0	0	0	0
⊳ Line 22: Rental of hospital space	179,378	183,922	187,759	192,135	184,585
⊳ Line 23: Gov appropriations ? ⊳ Median	0 1,017,693	0 983,261.5	0 1,173,286	12,617,053 1,987,202	12,376,036 1,597,664
⊳ Sum Line 24	63,977,022	83,495,574	120,581,264	139,882,979	139,241,871
Total income ? Median	141,277,198 6,586,430	238,712,830 6,767,106	352,285,925 8,419,950	203,177,271 8,094,175	241,195,574 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	141,277,198 6,043,842	238,712,830 5,845,112	352,285,925 7,606,259	203,177,271 7,283,041	241,195,574 14,957,241
Net margin Median	9.35976% 4.62%	15.00185% 4.42%	20.00581% 5.16%	10.77029% 5.2%	11.61336% 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 MILTON S. HERSHEY 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	138,961,454 23,241,334	145,688,482 23,709,545	159,137,088 24,248,380	156,625,043 22,858,541	162,036,413 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	138,961,454 21,577,146	145,688,482 22,041,594	159,137,088 22,722,063	156,625,043 21,570,441	162,036,413 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	79,326,565 11,160,864	86,247,046 11,987,345	85,949,818 12,926,866	90,388,684 11,884,480	97,413,707 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	79,326,565 10,918,923	86,247,046 11,706,976	85,949,818 12,615,917	90,388,684 11,458,116	97,413,707 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	32,705,890 3,284,314	34,940,748 3,250,551	38,608,210 3,386,837	39,048,912 3,360,806	39,851,520 3,508,953
Disproportionate-share hospital (DSH) Median	3,597,052 594,888	3,484,258 595,761	3,527,399 577,894	3,343,432 542,168	3,235,494 549,667
Outlier Median	8,435,974 582,572	10,753,244 538,116	16,544,518 212,434	7,069,131 126,559	7,307,830 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	0 3,662,910	8,009,218 3,730,911	0 4,081,319	1,607,754 4,643,908	42,755,488 4,389,147
Charity care Median	16,720,094 2,654,636	15,444,505 2,940,659	9,243,279 3,380,215	25,877,874 3,488,738	22,899,492 3,233,405
Uncompensated care (UCC) Median	25,519,735 5,147,790	26,203,277 5,337,617	15,795,289 5,711,082	36,183,375 5,923,418	33,043,899 5,508,107
UCC as a % of operating expenses Median	1.87% 3.24	1.94% 3.12	1.12% 3.21	2.15% 3.3	1.80% 2.86
Total shortfall/UCC Median	25,519,735 9,489,989	34,212,495 9,424,297	15,795,289 10,120,158	37,791,129 11,171,337	75,799,387 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	466,548,540 52,142,039	424,009,566 54,485,252	448,760,803 57,395,589	480,109,869 58,830,919	509,969,219 61,722,907
Salaries as a % of operating expenses Median	36.76 36.68	31.35 36.56	31.86 36.37	28.52 35.93	27.78 35.24
Intern, resident salaries* Median	32,970,908 2,598,592	36,204,333 2,686,824	36,708,315 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	236,355 1,469,317
Contract adjusted salaries, direct-care Median	4,732,996 1,449,244	7,684,296 1,475,986	6,153,349 1,563,078	4,005,790 1,721,954	9,479,153 2,991,828
Contract hours, direct-care Median	63,443.00 22,725	112,423.00 23,018.5	82,864.00 24,503.48	52,884.94 25,026.5	120,536.83 33,786
Contract wages, direct-care Median	74.60 64.67	68.35 64.53	74.26 65.06	75.75 68.97	78.64 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.