As of the July, 2022, release via CMS

HCA HOUSTON HEALTHCARE SOUTHEAST

CMS id: 450097
4000 SPENCER HIGHWAY, PASADENA TX 77504. County: HARRIS
System: HCA
CBSA: Houston-The Woodlands-Sugar Land, TX

The 260-bed, acute-care hospital had $47,082,840 in net service to patients*, with a total profit margin of 16.17025% in fiscal year 2021, the latest year available.
It spent 16.01% of its operating expenses on uncompensated care and reported $40,320 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	forprofit	forprofit	forprofit	forprofit	forprofit
Acute beds Median	264 118	212 118	222 119.5	221 118	203 119
Total beds Median	346 162	270 162	265 162	278 162	260 163.5
FTEs Median	1,460.82 788.06	1,110.40 793.42	1,132.94 806.03	1,067.49 787.61	1,004.03 804.34

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	261,000,682 150,932,746	225,178,972 158,950,878	259,750,940 168,696,998	275,438,858 163,454,693	296,079,568 186,589,412
Operating expenses Median	277,634,885 149,311,209	222,477,054 156,110,414	234,391,113 164,890,568	223,644,891 166,516,854	248,996,728 180,120,888
Net income from service 2 patients (NS2P) ? Median	-16,634,203 -964,173	2,701,918 -643,601.5	25,359,827 -116,254	51,793,967 -5,025,862	47,082,840 -1,284,564
NS2P margin ? Median	-6.37% -0.62	1.20% -0.29	9.76% 0.18	18.80% -5.07	15.90% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for HCA HOUSTON HEALTHCARE SOUTHEAST 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	3,142,221 5,089,215	1,120,511 4,572,541	1,066,158 5,268,134	971,411 13,092,619	947,093 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	0 299,524	0 188,688.5	0 370,813	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	132,596	148,148	21,226
⊳ Line 12: Parking lot receipts	0	0	1,334	110	0
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	840,948	722,200	901,902	618,333	767,115
⊳ Line 15: Revenue from rental of living quarters	0	0	2,650	2,975	3,400
⊳ Line 16: Revenue from sale of medical and surgical supplies	0	0	17,638	16,048	26,709
⊳ 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	174	512	3,885	21,724	1,668
⊳ 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	-1,004	0	0
⊳ Line 21: Rental of vending machines	0	32,136	25,583	9,675	14,650
⊳ Line 22: Rental of hospital space	0	0	41,025	40,221	42,029
⊳ 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	2,301,099	365,663	-59,451	114,177	70,296
Total income ? Median	-13,491,982 6,586,430	3,822,429 6,767,106	26,425,985 8,419,950	52,765,378 8,094,175	48,029,933 15,162,888
Non-operating expenses Median	2 146,289.5	0 164,857	4,999,809 89,880.5	0 106,761	-7 31,473.5
Net income Median	-13,491,984 6,043,842	3,822,429 5,845,112	21,426,176 7,606,259	52,765,378 7,283,041	48,029,940 14,957,241
Net margin Median	-5.10784% 4.62%	1.68910% 4.42%	8.21502% 5.16%	19.08951% 5.2%	16.17025% 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 HCA HOUSTON HEALTHCARE SOUTHEAST 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	40,338,447 23,241,334	36,422,093 23,709,545	41,906,437 24,248,380	41,412,843 22,858,541	36,060,082 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	35,420,841 21,577,146	31,619,321 22,041,594	37,938,055 22,722,063	36,617,963 21,570,441	31,846,769 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	2,520,286 1,845,420	1,825,084 1,757,392	191,905 1,738,842	0 1,510,463	0 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	2,397,320 3,535,627	2,977,688 3,746,588	3,776,477 3,782,288	4,794,880 3,865,578	4,213,313 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	7,044,991 11,160,864	5,517,870 11,987,345	5,936,049 12,926,866	4,443,675 11,884,480	4,350,792 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	7,044,991 10,918,923	5,517,870 11,706,976	5,936,049 12,615,917	4,443,675 11,458,116	4,350,792 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	1,613,493 594,888	1,665,126 595,761	1,297,781 577,894	1,098,631 542,168	1,348,702 549,667
Outlier Median	301,999 582,572	289,070 538,116	147,831 212,434	177,397 126,559	111,536 139,139

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	40,320 4,389,147
Charity care Median	40,830,390 2,654,636	35,923,335 2,940,659	40,406,489 3,380,215	40,132,851 3,488,738	36,233,868 3,233,405
Uncompensated care (UCC) Median	48,933,243 5,147,790	41,487,224 5,337,617	44,702,612 5,711,082	43,858,721 5,923,418	39,873,060 5,508,107
UCC as a % of operating expenses Median	17.63% 3.24	18.65% 3.12	19.07% 3.21	19.61% 3.3	16.01% 2.86
Total shortfall/UCC Median	48,933,243 9,489,989	41,487,224 9,424,297	44,702,612 10,120,158	43,858,721 11,171,337	39,913,380 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	104,003,623 52,142,039	81,150,520 54,485,252	84,181,188 57,395,589	80,545,030 58,830,919	81,679,758 61,722,907
Salaries as a % of operating expenses Median	37.42 36.68	36.33 36.56	35.58 36.37	35.93 35.93	32.64 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	2,600,000 1,449,244	3,275,386 1,475,986	4,362,065 1,563,078	4,645,873 1,721,954	1,773,515 2,991,828
Contract hours, direct-care Median	45,604.00 22,725	56,288.23 23,018.5	90,924.92 24,503.48	82,515.57 25,026.5	24,945.00 33,786
Contract wages, direct-care Median	57.01 64.67	58.19 64.53	47.97 65.06	56.30 68.97	71.10 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.