As of the July, 2022, release via CMS

PARKWEST MEDICAL CENTER

CMS id: 440173
9352 PARKWEST BLVD, KNOXVILLE TN 37923. County: KNOX
System: COVENANT HEALTH
CBSA: Knoxville, TN

The 408-bed, acute-care hospital had $12,961,980 in net service to patients*, with a total profit margin of 11.10867% in fiscal year 2021, the latest year available.
It spent 3.31% of its operating expenses on uncompensated care and reported $0 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	368 118	368 118	324 119.5	362 118	362 119
Total beds Median	414 162	414 162	370 162	408 162	408 163.5
FTEs Median	1,725.00 788.06	1,758.00 793.42	1,767.00 806.03	1,754.69 787.61	1,742.81 804.34

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	320,051,257 150,932,746	335,492,269 158,950,878	348,810,193 168,696,998	356,766,158 163,454,693	386,501,161 186,589,412
Operating expenses Median	297,130,575 149,311,209	310,684,727 156,110,414	328,276,673 164,890,568	348,896,667 166,516,854	373,539,181 180,120,888
Net income from service 2 patients (NS2P) ? Median	22,920,682 -964,173	24,807,542 -643,601.5	20,533,520 -116,254	7,869,491 -5,025,862	12,961,980 -1,284,564
NS2P margin ? Median	7.16% -0.62	7.39% -0.29	5.89% 0.18	2.21% -5.07	3.35% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for PARKWEST 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	15,893,944 5,089,215	16,089,989 4,572,541	15,881,166 5,268,134	22,809,644 13,092,619	33,754,220 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	50,771 224,999	106,349 199,009	151,317 206,870.5	135,778 194,343	224,422 249,496
⊳ Line 7: Investments ? ⊳ Median	78,168 299,524	53,868 188,688.5	66,103 370,813	49,271 309,361.5	240,827 375,329
⊳ 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	1,975,897	2,091,094	2,075,322	1,699,135	1,438,848
⊳ 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	7,601,120	7,729,504	8,274,032	8,587,775	8,485,943
⊳ Line 18: Revenue from sale of medical records and abstracts	1,649	274	3,128	81	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	0	0	0	0
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	557,228	532,570	558,798	427,909	459,641
⊳ Line 21: Rental of vending machines	22,168	24,332	29,064	21,330	3,753
⊳ Line 22: Rental of hospital space	3,180,164	3,539,319	3,603,579	3,782,938	3,741,615
⊳ 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	2,426,779	2,012,679	1,119,823	8,105,427	19,159,171
Total income ? Median	38,814,626 6,586,430	40,897,531 6,767,106	36,414,686 8,419,950	30,679,135 8,094,175	46,716,200 15,162,888
Non-operating expenses Median	16,620 146,289.5	0 164,857	29,386 89,880.5	447 106,761	31,405 31,473.5
Net income Median	38,798,006 6,043,842	40,897,531 5,845,112	36,385,300 7,606,259	30,678,688 7,283,041	46,684,795 14,957,241
Net margin Median	11.54891% 4.62%	11.63242% 4.42%	9.97701% 5.16%	8.08236% 5.2%	11.10867% 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 PARKWEST 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	66,038,536 23,241,334	68,003,791 23,709,545	66,893,071 24,248,380	67,171,292 22,858,541	67,046,624 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	63,778,849 21,577,146	65,478,832 22,041,594	64,484,638 22,722,063	65,240,851 21,570,441	65,570,968 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	2,259,687 1,845,420	2,524,959 1,757,392	2,408,433 1,738,842	1,930,441 1,510,463	1,475,656 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	23,444,472 11,160,864	25,187,828 11,987,345	27,391,710 12,926,866	27,098,446 11,884,480	31,080,103 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	23,444,472 10,918,923	25,187,828 11,706,976	27,391,710 12,615,917	27,098,446 11,458,116	31,080,103 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	1,547,106 594,888	1,096,337 595,761	1,336,734 577,894	940,158 542,168	779,520 549,667
Outlier Median	1,555,422 582,572	1,133,844 538,116	1,247,952 212,434	114,591 126,559	370,293 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	0 3,662,910	0 3,730,911	0 4,081,319	0 4,643,908	0 4,389,147
Charity care Median	7,853,504 2,654,636	7,128,968 2,940,659	7,645,708 3,380,215	8,821,363 3,488,738	9,131,453 3,233,405
Uncompensated care (UCC) Median	10,916,833 5,147,790	10,637,879 5,337,617	12,049,921 5,711,082	12,718,256 5,923,418	12,364,452 5,508,107
UCC as a % of operating expenses Median	3.67% 3.24	3.42% 3.12	3.67% 3.21	3.65% 3.3	3.31% 2.86
Total shortfall/UCC Median	10,916,833 9,489,989	10,637,879 9,424,297	12,049,921 10,120,158	12,718,256 11,171,337	12,364,452 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	99,316,097 52,142,039	106,233,685 54,485,252	110,254,501 57,395,589	112,967,179 58,830,919	120,262,152 61,722,907
Salaries as a % of operating expenses Median	33.43 36.68	34.19 36.56	33.59 36.37	32.38 35.93	32.20 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	5,551,102 1,449,244	5,032,820 1,475,986	5,529,712 1,563,078	5,154,800 1,721,954	4,035,855 2,991,828
Contract hours, direct-care Median	105,996.00 22,725	96,912.00 23,018.5	107,587.00 24,503.48	109,889.00 25,026.5	67,914.00 33,786
Contract wages, direct-care Median	52.37 64.67	51.93 64.53	51.40 65.06	46.91 68.97	59.43 88.94

* in an approved program

Return to top

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.