As of the July, 2022, release via CMS

MEMORIAL HERMANN TEXAS MEDICAL CNTR

CMS id: 450068
6411 FANNIN, HOUSTON TX 77030. County: HARRIS
System: MEMORIAL HERMANN
CBSA: Houston-The Woodlands-Sugar Land, TX

The 1,087-bed, acute-care hospital had $65,536,646 in net service to patients*, with a total profit margin of 7.10752% in fiscal year 2021, the latest year available.
It spent 8.69% of its operating expenses on uncompensated care and reported $8,147,617 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	665 118	653 118	658 119.5	685 118	687 119
Total beds Median	1,036 162	1,022 162	1,014 162	1,058 162	1,087 163.5
FTEs Median	5,687.95 788.06	5,674.09 793.42	5,844.99 806.03	6,243.68 787.61	6,544.84 804.34

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	775,270,050 150,932,746	1,613,167,123 158,950,878	1,691,807,422 168,696,998	1,755,749,974 163,454,693	2,142,530,278 186,589,412
Operating expenses Median	1,525,891,163 149,311,209	1,578,634,539 156,110,414	1,626,113,674 164,890,568	1,755,529,616 166,516,854	2,076,993,632 180,120,888
Net income from service 2 patients (NS2P) ? Median	-750,621,113 -964,173	34,532,584 -643,601.5	65,693,748 -116,254	220,358 -5,025,862	65,536,646 -1,284,564
NS2P margin ? Median	-96.82% -0.62	2.14% -0.29	3.88% 0.18	0.01% -5.07	3.06% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MEMORIAL HERMANN TEXAS MEDICAL CNTR 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	55,405,004 5,089,215	61,817,289 4,572,541	53,160,877 5,268,134	89,816,369 13,092,619	93,381,155 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	13,886,079 224,999	9,437,749 199,009	6,987,525 206,870.5	2,535,788 194,343	13,258,935 249,496
⊳ Line 7: Investments ? ⊳ Median	1,345 299,524	0 188,688.5	12,321 370,813	66,065 309,361.5	88,989 375,329
⊳ 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	10,292,145	10,324,863	10,563,679	9,393,738	6,097,341
⊳ 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	5,339,499	4,549,598	7,791,934	14,613,316	32,887,832
⊳ 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	0	0	0	0	0
⊳ 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	25,885,936	37,505,079	27,805,418	63,207,462	41,048,058
Total income ? Median	-695,216,109 6,586,430	96,349,873 6,767,106	118,854,625 8,419,950	90,036,727 8,094,175	158,917,801 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	-695,216,109 6,043,842	96,349,873 5,845,112	118,854,625 7,606,259	90,036,727 7,283,041	158,917,801 14,957,241
Net margin Median	-83.69291% 4.62%	5.75228% 4.42%	6.81128% 5.16%	4.87854% 5.2%	7.10752% 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 MEMORIAL HERMANN TEXAS MEDICAL CNTR 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	189,636,501 23,241,334	207,055,318 23,709,545	207,688,210 24,248,380	202,492,380 22,858,541	218,283,536 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	187,131,916 21,577,146	205,227,690 22,041,594	206,801,325 22,722,063	201,441,676 21,570,441	216,629,321 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	2,260,199 3,535,627	1,584,822 3,746,588	684,671 3,782,288	833,637 3,865,578	1,383,014 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	244,386 1,203,033	242,806 1,215,295	202,214 1,313,657	217,067 1,365,298	271,201 1,179,746
All outpatient revenue Median Click here to show/hide details	37,415,707 11,160,864	40,184,201 11,987,345	42,209,227 12,926,866	40,080,781 11,884,480	41,456,736 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	37,415,707 10,918,923	40,184,201 11,706,976	42,209,227 12,615,917	40,080,781 11,458,116	41,456,736 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	28,017,585 3,284,314	29,676,881 3,250,551	28,922,545 3,386,837	27,776,674 3,360,806	29,688,491 3,508,953
Disproportionate-share hospital (DSH) Median	6,443,975 594,888	6,950,724 595,761	6,533,246 577,894	5,945,934 542,168	5,519,858 549,667
Outlier Median	15,854,759 582,572	16,062,061 538,116	15,620,381 212,434	2,331,595 126,559	3,127,101 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	5,779,069 3,662,910	4,668,426 3,730,911	2,567,953 4,081,319	4,360,604 4,643,908	8,147,617 4,389,147
Charity care Median	88,630,916 2,654,636	86,473,125 2,940,659	89,859,862 3,380,215	109,685,648 3,488,738	153,814,921 3,233,405
Uncompensated care (UCC) Median	107,894,679 5,147,790	119,219,693 5,337,617	108,188,051 5,711,082	135,788,200 5,923,418	180,516,067 5,508,107
UCC as a % of operating expenses Median	7.07% 3.24	7.55% 3.12	6.65% 3.21	7.73% 3.3	8.69% 2.86
Total shortfall/UCC Median	113,673,748 9,489,989	123,888,119 9,424,297	110,756,004 10,120,158	140,148,804 11,171,337	188,663,684 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	440,149,335 52,142,039	451,909,831 54,485,252	474,075,319 57,395,589	517,670,358 58,830,919	572,960,813 61,722,907
Salaries as a % of operating expenses Median	28.85 36.68	28.63 36.56	29.15 36.37	29.49 35.93	27.59 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	36,025,426 1,251,927	37,584,262 1,186,494	38,304,038 1,204,885	40,080,087 1,279,653	41,738,461 1,469,317
Contract adjusted salaries, direct-care Median	48,466,623 1,449,244	40,368,928 1,475,986	42,440,482 1,563,078	47,696,983 1,721,954	17,288,897 2,991,828
Contract hours, direct-care Median	1,221,985.20 22,725	1,180,449.91 23,018.5	1,273,136.04 24,503.48	1,328,762.66 25,026.5	160,548.93 33,786
Contract wages, direct-care Median	39.66 64.67	34.20 64.53	33.34 65.06	35.90 68.97	107.69 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.