As of the July, 2022, release via CMS

HOUSTON NORTHWEST MEDICAL CENTER

CMS id: 450638
710 FM 1960 WEST, HOUSTON TX 77090. County: HARRIS
System: HCA
CBSA: Houston-The Woodlands-Sugar Land, TX

The 322-bed, acute-care hospital had $15,127,637 in net service to patients*, with a total profit margin of 3.60150% in fiscal year 2021, the latest year available.
It spent 15.35% of its operating expenses on uncompensated care and reported $1,511,239 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	251 118	251 118	240 119.5	233 118	240 119
Total beds Median	311 162	311 162	312 162	305 162	322 163.5
FTEs Median	1,152.60 788.06	1,219.98 793.42	1,124.25 806.03	1,085.26 787.61	1,037.00 804.34

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	284,926,606 150,932,746	240,160,573 158,950,878	220,913,614 168,696,998	252,440,959 163,454,693	325,622,482 186,589,412
Operating expenses Median	271,087,711 149,311,209	263,168,524 156,110,414	267,546,669 164,890,568	273,601,246 166,516,854	310,494,845 180,120,888
Net income from service 2 patients (NS2P) ? Median	13,838,895 -964,173	-23,007,951 -643,601.5	-46,633,055 -116,254	-21,160,287 -5,025,862	15,127,637 -1,284,564
NS2P margin ? Median	4.86% -0.62	-9.58% -0.29	-21.11% 0.18	-8.38% -5.07	4.65% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for HOUSTON NORTHWEST MEDICAL CENTER 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	2,000,290 5,089,215	1,203,828 4,572,541	1,340,790 5,268,134	5,484,541 13,092,619	-3,527,395 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	23,337 299,524	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	14,800	0	0	0	0
⊳ Line 11: Rebates and refunds of expenses	71,067	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	1,227,685	0	388,319	748,664	242,610
⊳ 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	16,401	0	17,959	15,022	12,224
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	24,994	0	0	0	0
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	0	0	0	0
⊳ Line 21: Rental of vending machines	13,486	0	10,126	4,603	5,455
⊳ Line 22: Rental of hospital space	35,694	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	572,439	1,203,828	924,386	4,716,252	-3,787,684
Total income ? Median	15,839,185 6,586,430	-21,804,123 6,767,106	-45,292,265 8,419,950	-15,675,746 8,094,175	11,600,242 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	18 106,761	-4 31,473.5
Net income Median	15,839,185 6,043,842	-21,804,123 5,845,112	-45,292,265 7,606,259	-15,675,764 7,283,041	11,600,246 14,957,241
Net margin Median	5.52029% 4.62%	-9.03369% 4.42%	-20.37857% 5.16%	-6.07763% 5.2%	3.60150% 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 HOUSTON NORTHWEST MEDICAL CENTER 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	37,324,139 23,241,334	37,217,504 23,709,545	35,889,648 24,248,380	39,342,158 22,858,541	39,937,749 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	35,233,886 21,577,146	33,177,278 22,041,594	31,288,824 22,722,063	33,847,695 21,570,441	34,586,500 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	2,090,253 3,535,627	4,040,226 3,746,588	4,600,824 3,782,288	5,494,463 3,865,578	5,351,249 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	9,021,440 11,160,864	7,010,099 11,987,345	5,780,140 12,926,866	4,908,603 11,884,480	4,258,495 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	9,021,440 10,918,923	7,010,099 11,706,976	5,780,140 12,615,917	4,908,603 11,458,116	4,258,495 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	106,233 3,284,314	110,298 3,250,551	116,162 3,386,837	131,447 3,360,806	130,022 3,508,953
Disproportionate-share hospital (DSH) Median	2,025,326 594,888	1,670,885 595,761	1,494,044 577,894	1,502,993 542,168	1,376,941 549,667
Outlier Median	1,686,931 582,572	2,436,912 538,116	1,749,455 212,434	1,623,801 126,559	857,309 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	54,208 3,662,910	0 3,730,911	399,834 4,081,319	892,137 4,643,908	1,511,239 4,389,147
Charity care Median	27,029,475 2,654,636	29,083,175 2,940,659	38,542,925 3,380,215	45,150,891 3,488,738	43,695,179 3,233,405
Uncompensated care (UCC) Median	38,222,091 5,147,790	36,297,802 5,337,617	42,458,583 5,711,082	49,319,472 5,923,418	47,649,909 5,508,107
UCC as a % of operating expenses Median	14.10% 3.24	13.79% 3.12	15.87% 3.21	18.03% 3.3	15.35% 2.86
Total shortfall/UCC Median	38,276,299 9,489,989	36,297,802 9,424,297	42,858,417 10,120,158	50,211,609 11,171,337	49,161,148 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	99,263,792 52,142,039	95,128,543 54,485,252	85,441,229 57,395,589	85,164,297 58,830,919	86,124,104 61,722,907
Salaries as a % of operating expenses Median	36.92 36.68	36.15 36.56	31.91 36.37	31.09 35.93	27.76 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	236,154 1,251,927	254,929 1,186,494	184,814 1,204,885	171,103 1,279,653	277,282 1,469,317
Contract adjusted salaries, direct-care Median	753,227 1,449,244	2,602,185 1,475,986	2,135,675 1,563,078	4,349,883 1,721,954	5,330,736 2,991,828
Contract hours, direct-care Median	11,982.00 22,725	53,793.75 23,018.5	46,100.60 24,503.48	84,402.00 25,026.5	95,197.00 33,786
Contract wages, direct-care Median	62.86 64.67	48.37 64.53	46.33 65.06	51.54 68.97	56.00 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.