As of the July, 2022, release via CMS

MORRISTOWN-HAMBLEN HOSPITAL

CMS id: 440030
908 WEST FOURTH NORTH STREET, MORRISTOWN TN 37814. County: HAMBLEN
System: COVENANT HEALTH
CBSA: Morristown, TN

The 114-bed, acute-care hospital had $13,885,750 in net service to patients*, with a total profit margin of 13.52422% in fiscal year 2021, the latest year available.
It spent 5.44% of its operating expenses on uncompensated care and reported $5,502 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	96 118	96 118	96 119.5	74 118	76 119
Total beds Median	128 162	128 162	128 162	112 162	114 163.5
FTEs Median	496.00 788.06	527.78 793.42	549.14 806.03	575.00 787.61	570.00 804.34

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	82,845,827 150,932,746	83,656,234 158,950,878	96,777,513 168,696,998	106,217,966 163,454,693	113,922,648 186,589,412
Operating expenses Median	78,308,254 149,311,209	79,142,046 156,110,414	85,177,392 164,890,568	93,537,752 166,516,854	100,036,898 180,120,888
Net income from service 2 patients (NS2P) ? Median	4,537,573 -964,173	4,514,188 -643,601.5	11,600,121 -116,254	12,680,214 -5,025,862	13,885,750 -1,284,564
NS2P margin ? Median	5.48% -0.62	5.40% -0.29	11.99% 0.18	11.94% -5.07	12.19% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MORRISTOWN-HAMBLEN 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	1,606,953 5,089,215	1,437,971 4,572,541	863,949 5,268,134	2,741,142 13,092,619	1,771,229 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	7,580 224,999	4,015 199,009	11,717 206,870.5	5,981 194,343	7,273 249,496
⊳ Line 7: Investments ? ⊳ Median	5,040 299,524	6,790 188,688.5	6,981 370,813	8,281 309,361.5	67,728 375,329
⊳ 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	283,948	259,666	305,139	271,751	189,053
⊳ 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	812	0	0	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	218	362	25	53	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	0	0	0	0
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	67,142	66,253	67,795	58,744	44,339
⊳ Line 21: Rental of vending machines	28,356	28,727	32,925	36,117	24,912
⊳ Line 22: Rental of hospital space	267,123	316,161	375,140	316,107	311,584
⊳ 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	946,734	755,997	64,227	2,044,108	1,126,340
Total income ? Median	6,144,526 6,586,430	5,952,159 6,767,106	12,464,070 8,419,950	15,421,356 8,094,175	15,656,979 15,162,888
Non-operating expenses Median	0 146,289.5	7,200 164,857	1,677 89,880.5	700 106,761	10,287 31,473.5
Net income Median	6,144,526 6,043,842	5,944,959 5,845,112	12,462,393 7,606,259	15,420,656 7,283,041	15,646,692 14,957,241
Net margin Median	7.27569% 4.62%	6.98633% 4.42%	12.76342% 5.16%	14.15270% 5.2%	13.52422% 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 MORRISTOWN-HAMBLEN 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	15,013,369 23,241,334	14,785,613 23,709,545	15,699,954 24,248,380	15,671,936 22,858,541	17,541,079 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	13,350,876 21,577,146	13,332,899 22,041,594	14,418,566 22,722,063	14,494,465 21,570,441	16,425,241 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	1,662,493 1,845,420	1,452,714 1,757,392	1,281,388 1,738,842	1,177,471 1,510,463	1,115,838 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	9,169,868 11,160,864	9,256,475 11,987,345	9,602,383 12,926,866	10,540,744 11,884,480	9,859,017 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	9,169,868 10,918,923	9,256,475 11,706,976	9,602,383 12,615,917	10,540,744 11,458,116	9,859,017 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	375,631 594,888	341,440 595,761	462,408 577,894	319,154 542,168	298,470 549,667
Outlier Median	46,647 582,572	27,711 538,116	5,688 212,434	0 126,559	6,240 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	0 3,662,910	4,118 3,730,911	0 4,081,319	0 4,643,908	5,502 4,389,147
Charity care Median	4,269,852 2,654,636	3,558,947 2,940,659	3,919,095 3,380,215	4,331,866 3,488,738	3,817,233 3,233,405
Uncompensated care (UCC) Median	5,340,027 5,147,790	5,411,628 5,337,617	5,739,761 5,711,082	6,367,966 5,923,418	5,441,772 5,508,107
UCC as a % of operating expenses Median	6.82% 3.24	6.84% 3.12	6.74% 3.21	6.81% 3.3	5.44% 2.86
Total shortfall/UCC Median	5,340,027 9,489,989	5,415,746 9,424,297	5,739,761 10,120,158	6,367,966 11,171,337	5,447,274 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	29,135,102 52,142,039	30,557,208 54,485,252	32,619,101 57,395,589	35,511,610 58,830,919	38,179,639 61,722,907
Salaries as a % of operating expenses Median	37.21 36.68	38.61 36.56	38.30 36.37	37.97 35.93	38.17 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	1,247,887 1,449,244	1,355,986 1,475,986	1,898,669 1,563,078	1,005,311 1,721,954	1,403,604 2,991,828
Contract hours, direct-care Median	24,976.00 22,725	28,243.00 23,018.5	36,107.00 24,503.48	21,805.00 25,026.5	27,863.00 33,786
Contract wages, direct-care Median	49.96 64.67	48.01 64.53	52.58 65.06	46.10 68.97	50.38 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.