As of the July, 2022, release via CMS

MEMORIAL HERMANN HOSPITAL SYS

CMS id: 450184
1635 NORTH LOOP WEST, HOUSTON TX 77008. County: HARRIS
System: MEMORIAL HERMANN
CBSA: Houston-The Woodlands-Sugar Land, TX

The 1,414-bed, acute-care hospital had $202,978,176 in net service to patients*, with a total profit margin of 13.79791% in fiscal year 2021, the latest year available.
It spent 12.35% of its operating expenses on uncompensated care and reported $874,177 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	1,126 118	1,080 118	1,068 119.5	1,065 118	1071 119
Total beds Median	1,411 162	1,376 162	1,388 162	1,408 162	1,414 163.5
FTEs Median	6,272.60 788.06	6,124.81 793.42	6,494.14 806.03	6,805.79 787.61	6,895.74 804.34

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	1,402,621,625 150,932,746	1,438,856,241 158,950,878	1,587,407,559 168,696,998	1,612,177,159 163,454,693	1,900,862,141 186,589,412
Operating expenses Median	1,390,299,720 149,311,209	1,418,057,501 156,110,414	1,473,989,558 164,890,568	1,534,823,284 166,516,854	1,697,883,965 180,120,888
Net income from service 2 patients (NS2P) ? Median	12,321,905 -964,173	20,798,740 -643,601.5	113,418,001 -116,254	77,353,875 -5,025,862	202,978,176 -1,284,564
NS2P margin ? Median	0.88% -0.62	1.45% -0.29	7.14% 0.18	4.80% -5.07	10.68% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MEMORIAL HERMANN HOSPITAL SYS 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	30,566,860 5,089,215	42,365,217 4,572,541	31,694,981 5,268,134	62,300,849 13,092,619	68,793,191 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	719,818 224,999	406,712 199,009	771,303 206,870.5	442,696 194,343	17,052,133 249,496
⊳ Line 7: Investments ? ⊳ Median	63,987 299,524	64,421 188,688.5	103,213 370,813	136,648 309,361.5	165,885 375,329
⊳ 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	7,707,235	7,658,832	8,436,132	7,492,714	4,612,595
⊳ 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	811,861	733,685	119,246	392,040	1,975,166
⊳ 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	21,263,959	33,501,567	22,265,087	53,836,751	44,987,412
Total income ? Median	42,888,765 6,586,430	63,163,957 6,767,106	145,112,982 8,419,950	139,654,724 8,094,175	271,771,367 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	42,888,765 6,043,842	63,163,957 5,845,112	145,112,982 7,606,259	139,654,724 7,283,041	271,771,367 14,957,241
Net margin Median	2.99254% 4.62%	4.26432% 4.42%	8.96256% 5.16%	8.34019% 5.2%	13.79791% 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 HOSPITAL SYS 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	197,868,835 23,241,334	207,412,042 23,709,545	223,211,484 24,248,380	227,979,408 22,858,541	232,430,742 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	184,902,773 21,577,146	192,760,245 22,041,594	207,005,558 22,722,063	213,346,484 21,570,441	221,106,776 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	12,966,062 3,535,627	14,651,797 3,746,588	16,205,926 3,782,288	14,632,924 3,865,578	11,323,966 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	73,668,965 11,160,864	74,784,578 11,987,345	80,696,915 12,926,866	75,100,787 11,884,480	71,854,335 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	65,038,321 10,918,923	64,095,887 11,706,976	69,700,664 12,615,917	66,244,598 11,458,116	63,418,755 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	8,630,644 1,282,808	10,688,691 1,407,728	10,996,251 1,341,512	8,856,189 1,407,046	8,435,580 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	4,654,134 3,284,314	4,867,936 3,250,551	5,003,899 3,386,837	5,306,971 3,360,806	5,050,444 3,508,953
Disproportionate-share hospital (DSH) Median	6,986,525 594,888	7,031,479 595,761	6,937,538 577,894	6,801,973 542,168	6,158,838 549,667
Outlier Median	4,273,447 582,572	3,690,261 538,116	3,211,054 212,434	553,195 126,559	679,235 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	1,590,569 3,662,910	1,473,790 3,730,911	628,437 4,081,319	579,163 4,643,908	874,177 4,389,147
Charity care Median	124,330,452 2,654,636	125,271,216 2,940,659	134,657,636 3,380,215	152,560,095 3,488,738	169,228,290 3,233,405
Uncompensated care (UCC) Median	185,349,521 5,147,790	190,913,947 5,337,617	172,787,972 5,711,082	199,348,695 5,923,418	209,728,797 5,508,107
UCC as a % of operating expenses Median	13.33% 3.24	13.46% 3.12	11.72% 3.21	12.99% 3.3	12.35% 2.86
Total shortfall/UCC Median	186,940,090 9,489,989	192,387,737 9,424,297	173,416,409 10,120,158	199,927,858 11,171,337	210,602,974 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	465,429,440 52,142,039	473,703,415 54,485,252	509,183,368 57,395,589	539,339,104 58,830,919	582,845,233 61,722,907
Salaries as a % of operating expenses Median	33.48 36.68	33.41 36.56	34.54 36.37	35.14 35.93	34.33 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	445,628 1,251,927	704,443 1,186,494	368,371 1,204,885	1,133,079 1,279,653	1,610,541 1,469,317
Contract adjusted salaries, direct-care Median	7,535,479 1,449,244	6,889,922 1,475,986	6,871,884 1,563,078	4,754,422 1,721,954	24,444,415 2,991,828
Contract hours, direct-care Median	119,150.00 22,725	134,076.00 23,018.5	131,474.00 24,503.48	82,751.00 25,026.5	256,411.81 33,786
Contract wages, direct-care Median	63.24 64.67	51.39 64.53	52.27 65.06	57.45 68.97	95.33 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.