As of the July, 2022, release via CMS

MEMORIAL HERMANN NORTHEAST

CMS id: 450684
18951 MEMORIAL NORTH, HUMBLE TX 77338. County: HARRIS
System: MEMORIAL HERMANN HEALTH SYSTEM
CBSA: Houston-The Woodlands-Sugar Land, TX

The 242-bed, acute-care hospital had $26,618,725 in net service to patients*, with a total profit margin of 11.21079% in fiscal year 2021, the latest year available.
It spent 12.96% of its operating expenses on uncompensated care and reported $188,214 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	221 118	225 118	208 119.5	208 118	208 119
Total beds Median	251 162	255 162	242 162	242 162	242 163.5
FTEs Median	1,044.99 788.06	1,095.12 793.42	1,166.48 806.03	1,182.02 787.61	1,194.55 804.34

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	246,447,308 150,932,746	252,107,791 158,950,878	285,366,770 168,696,998	296,446,698 163,454,693	359,934,138 186,589,412
Operating expenses Median	243,851,176 149,311,209	241,422,204 156,110,414	262,927,544 164,890,568	273,977,802 166,516,854	333,315,413 180,120,888
Net income from service 2 patients (NS2P) ? Median	2,596,132 -964,173	10,685,587 -643,601.5	22,439,226 -116,254	22,468,896 -5,025,862	26,618,725 -1,284,564
NS2P margin ? Median	1.05% -0.62	4.24% -0.29	7.86% 0.18	7.58% -5.07	7.40% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MEMORIAL HERMANN NORTHEAST 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	9,005,898 5,089,215	11,747,962 4,572,541	6,481,051 5,268,134	12,591,346 13,092,619	15,466,675 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	3,092 224,999	0 199,009	35,606 206,870.5	1,850,684 194,343	2,238,242 249,496
⊳ Line 7: Investments ? ⊳ Median	15,439 299,524	10,758 188,688.5	20,316 370,813	11,521 309,361.5	1,933 375,329
⊳ 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	823,926	1,074,706	1,318,885	802,779	947,318
⊳ 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	210,705	40,336	53,383	1,045,498	863,380
⊳ 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	7,952,736	10,622,162	5,052,861	8,880,864	11,415,802
Total income ? Median	11,602,030 6,586,430	22,433,549 6,767,106	28,920,277 8,419,950	35,060,242 8,094,175	42,085,400 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	11,602,030 6,043,842	22,433,549 5,845,112	28,920,277 7,606,259	35,060,242 7,283,041	42,085,400 14,957,241
Net margin Median	4.54174% 4.62%	8.50220% 4.42%	9.90937% 5.16%	11.34496% 5.2%	11.21079% 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 NORTHEAST 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	30,659,395 23,241,334	31,738,052 23,709,545	36,391,905 24,248,380	35,720,014 22,858,541	39,535,736 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	30,659,395 21,577,146	31,738,052 22,041,594	36,391,905 22,722,063	35,720,014 21,570,441	39,535,736 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	0 3,535,627	0 3,746,588	0 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	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	12,425,617 11,160,864	13,379,404 11,987,345	14,062,729 12,926,866	10,757,150 11,884,480	10,748,485 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	12,425,617 10,918,923	13,379,404 11,706,976	14,062,729 12,615,917	10,757,150 11,458,116	10,748,485 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	957,582 594,888	893,542 595,761	940,177 577,894	902,378 542,168	1,350,039 549,667
Outlier Median	216,995 582,572	163,097 538,116	45,783 212,434	46,062 126,559	86,763 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	373,705 3,662,910	148,197 3,730,911	43,633 4,081,319	68,208 4,643,908	188,214 4,389,147
Charity care Median	16,021,110 2,654,636	26,749,728 2,940,659	28,944,339 3,380,215	33,051,188 3,488,738	33,577,810 3,233,405
Uncompensated care (UCC) Median	32,380,945 5,147,790	35,977,845 5,337,617	38,708,078 5,711,082	43,222,091 5,923,418	43,207,603 5,508,107
UCC as a % of operating expenses Median	13.28% 3.24	14.90% 3.12	14.72% 3.21	15.78% 3.3	12.96% 2.86
Total shortfall/UCC Median	32,754,650 9,489,989	36,126,042 9,424,297	38,751,711 10,120,158	43,290,299 11,171,337	43,395,817 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	77,649,252 52,142,039	82,779,154 54,485,252	90,156,034 57,395,589	93,054,020 58,830,919	106,280,679 61,722,907
Salaries as a % of operating expenses Median	31.84 36.68	34.29 36.56	34.29 36.37	33.96 35.93	31.89 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	2,345,987 1,449,244	2,266,386 1,475,986	1,050,593 1,563,078	2,086,106 1,721,954	23,870,875 2,991,828
Contract hours, direct-care Median	38,624.00 22,725	35,978.00 23,018.5	15,576.84 24,503.48	25,573.68 25,026.5	205,482.95 33,786
Contract wages, direct-care Median	60.74 64.67	62.99 64.53	67.45 65.06	81.57 68.97	116.17 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.