As of the July, 2022, release via CMS

HARRIS HEALTH SYSTEM

CMS id: 450289
4800 FOURNACE PLACE, BELLAIRE TX 77401. County: HARRIS
System: --
CBSA: Houston-The Woodlands-Sugar Land, TX

The 654-bed, acute-care hospital had $-1,096,566,662 in net service to patients*, with a total profit margin of 14.89055% in fiscal year 2021, the latest year available.
It spent 39.73% of its operating expenses on uncompensated care and reported $8,411,456 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	gov	gov	gov	gov	gov
Acute beds Median	503 118	494 118	479 119.5	490 118	491 119
Total beds Median	708 162	698 162	684 162	653 162	654 163.5
FTEs Median	8,035.94 788.06	8,153.75 793.42	8,063.76 806.03	8,212.76 787.61	8,552.37 804.34

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	390,779,965 150,932,746	403,186,804 158,950,878	477,758,040 168,696,998	591,357,396 163,454,693	695,234,160 186,589,412
Operating expenses Median	1,338,543,198 149,311,209	1,457,128,391 156,110,414	1,441,258,588 164,890,568	1,620,439,399 166,516,854	1,791,800,822 180,120,888
Net income from service 2 patients (NS2P) ? Median	-947,763,233 -964,173	-1,053,941,587 -643,601.5	-963,500,548 -116,254	-1,029,082,003 -5,025,862	-1,096,566,662 -1,284,564
NS2P margin ? Median	-242.53% -0.62	-261.40% -0.29	-201.67% 0.18	-174.02% -5.07	-157.73% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for HARRIS HEALTH SYSTEM 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	972,265,175 5,089,215	1,031,582,271 4,572,541	987,990,618 5,268,134	1,119,291,645 13,092,619	1,475,584,199 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	1,371,758 224,999	174,800 199,009	1,334,392 206,870.5	1,247,741 194,343	4,852,827 249,496
⊳ Line 7: Investments ? ⊳ Median	5,272,894 299,524	7,815,120 188,688.5	11,423,363 370,813	15,088,717 309,361.5	4,434,213 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	28,715	23,477	21,086	43,552	106,773
⊳ Line 11: Rebates and refunds of expenses	0	0	0	0	0
⊳ Line 12: Parking lot receipts	3,936,108	3,691,681	3,679,738	4,115,310	2,081,573
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	2,789,305	2,968,579	4,046,784	4,247,152	2,378,540
⊳ 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	0	0	0	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	572,917	447,319	384,726	563,179	425,448
⊳ 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	381,813	304,884	285,616	321,974	98,569
⊳ Line 22: Rental of hospital space	70,212	54,642	39,088	39,846	40,618
⊳ Line 23: Gov appropriations ? ⊳ Median	698,819,314 1,017,693	717,016,808 983,261.5	739,021,648 1,173,286	767,514,777 1,987,202	780,712,611 1,597,664
⊳ Sum Line 24	259,022,139	299,084,961	227,754,177	326,109,397	680,453,027
Total income ? Median	24,501,942 6,586,430	-22,359,316 6,767,106	24,490,070 8,419,950	90,209,642 8,094,175	379,017,537 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	0 106,761	55,770,816 31,473.5
Net income Median	24,501,942 6,043,842	-22,359,316 5,845,112	24,490,070 7,606,259	90,209,642 7,283,041	323,246,721 14,957,241
Net margin Median	1.79759% 4.62%	-1.55839% 4.42%	1.67082% 5.16%	5.27342% 5.2%	14.89055% 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 HARRIS HEALTH SYSTEM 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	51,308,212 23,241,334	66,331,977 23,709,545	114,437,941 24,248,380	170,533,409 22,858,541	197,116,406 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	50,204,465 21,577,146	65,400,623 22,041,594	113,437,597 22,722,063	169,813,868 21,570,441	196,521,259 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	721,520 1,845,420	598,147 1,757,392	606,144 1,738,842	719,541 1,510,463	595,147 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	231,793 3,535,627	201,498 3,746,588	299,909 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	150,434 1,203,033	131,709 1,215,295	94,291 1,313,657	0 1,365,298	0 1,179,746
All outpatient revenue Median Click here to show/hide details	23,456,694 11,160,864	22,051,936 11,987,345	22,905,272 12,926,866	23,871,347 11,884,480	15,310,533 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	23,456,694 10,918,923	22,051,936 11,706,976	22,905,272 12,615,917	23,871,347 11,458,116	15,310,533 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	9,882,093 3,284,314	9,040,928 3,250,551	8,862,345 3,386,837	9,941,120 3,360,806	9,664,231 3,508,953
Disproportionate-share hospital (DSH) Median	2,243,101 594,888	1,586,033 595,761	1,419,191 577,894	1,493,774 542,168	1,172,494 549,667
Outlier Median	964,178 582,572	556,510 538,116	318,190 212,434	323,358 126,559	242,653 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	3,365,523 3,662,910	3,732,391 3,730,911	5,453,050 4,081,319	6,895,038 4,643,908	8,411,456 4,389,147
Charity care Median	630,916,691 2,654,636	602,766,134 2,940,659	601,200,502 3,380,215	645,169,598 3,488,738	676,008,761 3,233,405
Uncompensated care (UCC) Median	663,209,011 5,147,790	632,221,852 5,337,617	638,277,537 5,711,082	682,393,982 5,923,418	711,899,690 5,508,107
UCC as a % of operating expenses Median	49.55% 3.24	43.39% 3.12	44.29% 3.21	42.11% 3.3	39.73% 2.86
Total shortfall/UCC Median	666,574,534 9,489,989	635,954,243 9,424,297	643,730,587 10,120,158	689,289,020 11,171,337	720,311,146 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	516,056,442 52,142,039	537,144,287 54,485,252	552,472,821 57,395,589	598,581,614 58,830,919	640,335,865 61,722,907
Salaries as a % of operating expenses Median	38.55 36.68	36.86 36.56	38.33 36.37	36.94 35.93	35.74 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	1,270,733 1,449,244	323,274 1,475,986	947,869 1,563,078	5,830,239 1,721,954	7,903,220 2,991,828
Contract hours, direct-care Median	21,929.82 22,725	8,329.27 23,018.5	15,411.09 24,503.48	85,512.27 25,026.5	98,713.84 33,786
Contract wages, direct-care Median	57.95 64.67	38.81 64.53	61.51 65.06	68.18 68.97	80.06 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.