As of the July, 2022, release via CMS

THE METHODIST HOSPITAL

CMS id: 450358
6565 FANNIN STREET, HOUSTON TX 77030. County: HARRIS
System: THE METHODIST HOSPITAL- CORPORATE DI
CBSA: Houston-The Woodlands-Sugar Land, TX

The 1,090-bed, acute-care hospital had $172,654,072 in net service to patients*, with a total profit margin of 9.85443% in fiscal year 2021, the latest year available.
It spent 3.14% of its operating expenses on uncompensated care and reported $19,795 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	779 118	763 118	874 119.5	896 118	792 119
Total beds Median	1,020 162	1,043 162	1,163 162	1,203 162	1,090 163.5
FTEs Median	6,713.60 788.06	7,016.53 793.42	7,471.71 806.03	7,475.26 787.61	7,617.90 804.34

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	1,752,065,542 150,932,746	1,920,297,562 158,950,878	2,153,293,686 168,696,998	2,114,391,175 163,454,693	2,451,664,380 186,589,412
Operating expenses Median	1,648,932,821 149,311,209	1,773,594,935 156,110,414	1,969,189,407 164,890,568	2,073,143,248 166,516,854	2,279,010,308 180,120,888
Net income from service 2 patients (NS2P) ? Median	103,132,721 -964,173	146,702,627 -643,601.5	184,104,279 -116,254	41,247,927 -5,025,862	172,654,072 -1,284,564
NS2P margin ? Median	5.89% -0.62	7.64% -0.29	8.55% 0.18	1.95% -5.07	7.04% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for THE METHODIST HOSPITAL 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	69,518,867 5,089,215	74,958,352 4,572,541	83,993,558 5,268,134	77,433,800 13,092,619	76,480,286 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	792,353 309,361.5	1,201,451 375,329
⊳ 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	311,231	137,118	39,026	-12,106	541,386
⊳ Line 12: Parking lot receipts	1,624,811	1,716,987	1,761,766	1,628,540	1,890,530
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	9,793,016	9,976,231	10,727,627	7,056,623	8,148,781
⊳ 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	187,776	198,422	162,530	217,588	1,186
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	383,962	502,655	263,946	292,305	202,559
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	119,364	0	0	0	0
⊳ Line 21: Rental of vending machines	4,807,310	128,346	120,667	98,825	100,750
⊳ Line 22: Rental of hospital space	0	4,682,432	5,051,342	5,237,833	5,124,271
⊳ 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	52,291,397	57,616,161	65,866,654	62,121,839	59,269,372
Total income ? Median	172,651,588 6,586,430	221,660,979 6,767,106	268,097,837 8,419,950	118,681,727 8,094,175	249,134,358 15,162,888
Non-operating expenses Median	6 146,289.5	0 164,857	0 89,880.5	0 106,761	2 31,473.5
Net income Median	172,651,582 6,043,842	221,660,979 5,845,112	268,097,837 7,606,259	118,681,727 7,283,041	249,134,356 14,957,241
Net margin Median	9.47810% 4.62%	11.10940% 4.42%	11.98317% 5.16%	5.41474% 5.2%	9.85443% 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 THE METHODIST HOSPITAL 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	318,028,981 23,241,334	317,760,808 23,709,545	350,323,917 24,248,380	351,499,543 22,858,541	359,242,056 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	306,999,086 21,577,146	308,098,957 22,041,594	340,192,026 22,722,063	340,037,255 21,570,441	347,900,541 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	1,250,546 1,845,420	827,458 1,757,392	1,093,222 1,738,842	520,011 1,510,463	811,284 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	8,916,004 3,535,627	7,732,922 3,746,588	7,482,230 3,782,288	8,862,959 3,865,578	8,805,180 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	863,345 1,203,033	1,101,471 1,215,295	1,556,439 1,313,657	2,079,318 1,365,298	1,725,051 1,179,746
All outpatient revenue Median Click here to show/hide details	93,531,076 11,160,864	103,736,715 11,987,345	111,899,442 12,926,866	111,756,992 11,884,480	132,962,884 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	93,531,076 10,918,923	103,736,715 11,706,976	111,899,442 12,615,917	111,756,992 11,458,116	132,962,884 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	32,062,240 3,284,314	32,186,018 3,250,551	32,812,288 3,386,837	31,205,055 3,360,806	30,691,299 3,508,953
Disproportionate-share hospital (DSH) Median	1,108,919 594,888	1,531,933 595,761	1,398,395 577,894	1,202,472 542,168	2,138,960 549,667
Outlier Median	51,634,594 582,572	46,435,803 538,116	6,725,362 212,434	7,817,665 126,559	9,066,446 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	79,472 3,662,910	4,135 3,730,911	0 4,081,319	0 4,643,908	19,795 4,389,147
Charity care Median	36,592,506 2,654,636	39,080,588 2,940,659	45,788,768 3,380,215	54,926,385 3,488,738	63,524,339 3,233,405
Uncompensated care (UCC) Median	47,829,427 5,147,790	53,130,832 5,337,617	56,034,878 5,711,082	59,786,174 5,923,418	71,479,985 5,508,107
UCC as a % of operating expenses Median	2.90% 3.24	3.00% 3.12	2.85% 3.21	2.88% 3.3	3.14% 2.86
Total shortfall/UCC Median	47,908,899 9,489,989	53,134,967 9,424,297	56,034,878 10,120,158	59,786,174 11,171,337	71,499,780 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	467,930,612 52,142,039	499,236,369 54,485,252	548,085,798 57,395,589	565,513,004 58,830,919	611,654,184 61,722,907
Salaries as a % of operating expenses Median	28.38 36.68	28.15 36.56	27.83 36.37	27.28 35.93	26.84 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	22,681,756 1,251,927	26,209,714 1,186,494	29,235,982 1,204,885	30,096,585 1,279,653	31,480,674 1,469,317
Contract adjusted salaries, direct-care Median	23,722,921 1,449,244	27,181,472 1,475,986	32,156,677 1,563,078	38,617,090 1,721,954	47,236,198 2,991,828
Contract hours, direct-care Median	487,074.00 22,725	597,951.00 23,018.5	672,490.19 24,503.48	730,028.00 25,026.5	780,483.00 33,786
Contract wages, direct-care Median	48.70 64.67	45.46 64.53	47.82 65.06	52.90 68.97	60.52 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.