As of the July, 2022, release via CMS

PHD#1 DBA SKAGIT VALLEY HOSPITAL

CMS id: 500003
1415 E KINCAID STREET, MOUNT VERNON WA 98273. County: SKAGIT
System: SKAGIT REGIONAL HEALTH HOME OFFICE
CBSA: Mount Vernon-Anacortes, WA

The 137-bed, acute-care hospital had $-52,313,801 in net service to patients*, with a total profit margin of -0.23487% in fiscal year 2020, the latest year available.
It spent 1.79% of its operating expenses on uncompensated care and reported $15,876,419 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	--
Ownership	gov	gov	gov	gov	--
Acute beds Median	125 118	125 118	125 119.5	125 118	-- 119
Total beds Median	137 162	137 162	137 162	137 162	-- 163.5
FTEs Median	1,703.09 788.06	1,688.19 793.42	1,763.86 806.03	1,778.60 787.61	-- 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	306,142,240 150,932,746	325,043,432 158,950,878	337,173,906 168,696,998	338,844,412 163,454,693	-- 186,589,412
Operating expenses Median	340,763,656 149,311,209	350,534,314 156,110,414	376,091,126 164,890,568	391,158,213 166,516,854	-- 180,120,888
Net income from service 2 patients (NS2P) ? Median	-34,621,416 -964,173	-25,490,882 -643,601.5	-38,917,220 -116,254	-52,313,801 -5,025,862	-- -1,284,564
NS2P margin ? Median	-11.31% -0.62	-7.84% -0.29	-11.54% 0.18	-15.44% -5.07	--% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for PHD#1 DBA SKAGIT VALLEY 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	22,725,923 5,089,215	21,417,530 4,572,541	25,775,699 5,268,134	47,032,240 13,092,619	-- 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	1,695,648 224,999	1,300,394 199,009	1,053,195 206,870.5	907,306 194,343	-- 249,496
⊳ Line 7: Investments ? ⊳ Median	157,285 299,524	285,599 188,688.5	341,459 370,813	191,624 309,361.5	-- 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	13,91--	15,3--1	15,997	17,33--	--
⊳ Line 10: Purchase discounts	0	0	0	0	--
⊳ Line 11: Rebates and refunds of expenses	616,430	511,264	907,857	539,096	--
⊳ Line 12: Parking lot receipts	0	0	0	0	--
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	--
⊳ Line 14: Revenue from meals sold to emplyees and guests	231,252	262,679	286,674	234,232	--
⊳ Line 15: Revenue from rental of living quarters	0	0	0	0	--
⊳ Line 16: Revenue from sale of medical and surgical supplies	3,783	27,769	0	0	--
⊳ Line 17: Revenue from sale of drugs to other than patients	53,846	13,453	0	0	--
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	0	0	--
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	46,817	47,346	39,642	8,443	--
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	0	0	0	--
⊳ Line 21: Rental of vending machines	0	0	0	0	--
⊳ Line 22: Rental of hospital space	943,274	743,311	992,892	979,927	--
⊳ Line 23: Gov appropriations ? ⊳ Median	0 1,017,693	0 983,261.5	0 1,173,286	0 1,987,202	-- 1,597,664
⊳ Sum Line 24	18,963,678	18,210,414	22,137,983	44,154,282	--
Total income ? Median	-11,895,493 6,586,430	-4,073,352 6,767,106	-13,141,521 8,419,950	-5,281,561 8,094,175	-- 15,162,888
Non-operating expenses Median	-3,028,238 146,289.5	-14,207,484 164,857	-6,194,950 89,880.5	-4,375,250 106,761	-- 31,473.5
Net income Median	-8,867,255 6,043,842	10,134,132 5,845,112	-6,946,571 7,606,259	-906,311 7,283,041	-- 14,957,241
Net margin Median	-2.69629% 4.62%	2.92504% 4.42%	-1.91392% 5.16%	-0.23487% 5.2%	--% 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 PHD#1 DBA SKAGIT VALLEY 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	35,282,580 23,241,334	37,409,223 23,709,545	39,397,551 24,248,380	33,276,682 22,858,541	-- 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	35,282,580 21,577,146	37,409,223 22,041,594	39,397,551 22,722,063	33,276,682 21,570,441	-- 22,140,684
⊳ Swingbeds ⊳ Median	0 --	0 --	0 --	0 --	-- --
⊳ Tax Equity and Fiscal Responsibility Act payments (TEFRA) ⊳ Median	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	-- 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	0 3,535,627	0 3,746,588	0 3,782,288	0 3,865,578	-- 3,983,889
⊳ Long-term care hospital (LTCH) ⊳ Median	0 --	0 --	0 --	0 --	-- --
⊳ Critical-access hospitals ⊳ Median	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	-- 1,179,746
All outpatient revenue Median Click here to show/hide details	44,873,022 11,160,864	44,709,952 11,987,345	48,738,357 12,926,866	42,283,136 11,884,480	-- 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	44,669,907 10,918,923	44,501,674 11,706,976	48,541,443 12,615,917	42,155,476 11,458,116	-- 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	0 1,282,808	0 1,407,728	0 1,341,512	0 1,407,046	-- 1,476,867
⊳ Community mental health clinics (CMHC) ⊳ Median	0 --	0 --	0 --	0 --	-- --
⊳ Rural health clinics ⊳ Median	203,115 618,038	208,278 697,279	196,914 690,232	127,660 684,010	-- 670,558
⊳ Other federally qualified health clinics ⊳ Median	0 --	0 --	0 --	0 --	-- --

Other payments

Item	2017	2018	2019	2020	2021
Graduate Medical Education (GME) Median	4,519,066 3,284,314	4,664,138 3,250,551	5,064,230 3,386,837	4,499,279 3,360,806	-- 3,508,953
Disproportionate-share hospital (DSH) Median	1,001,294 594,888	1,179,259 595,761	1,182,954 577,894	1,071,125 542,168	-- 549,667
Outlier Median	1,945,424 582,572	1,648,693 538,116	909,031 212,434	598,772 126,559	-- 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	11,850,954 3,662,910	10,772,663 3,730,911	9,629,344 4,081,319	15,876,419 4,643,908	-- 4,389,147
Charity care Median	1,829,668 2,654,636	2,594,153 2,940,659	3,639,712 3,380,215	4,547,467 3,488,738	-- 3,233,405
Uncompensated care (UCC) Median	5,771,617 5,147,790	5,767,900 5,337,617	6,614,994 5,711,082	6,982,539 5,923,418	-- 5,508,107
UCC as a % of operating expenses Median	1.69% 3.24	1.65% 3.12	1.76% 3.21	1.79% 3.3	--% 2.86
Total shortfall/UCC Median	17,622,571 9,489,989	16,540,563 9,424,297	16,244,338 10,120,158	22,858,958 11,171,337	-- 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	149,671,362 52,142,039	154,983,100 54,485,252	166,949,716 57,395,589	173,783,475 58,830,919	-- 61,722,907
Salaries as a % of operating expenses Median	43.92 36.68	44.21 36.56	44.39 36.37	44.43 35.93	-- 35.24
Intern, resident salaries* Median	1,865,007 2,598,592	1,662,044 2,686,824	2,140,832 2,753,773	2,213,653 2,937,156	-- 2,909,848
Contract intern, resident salaries* Median	0 1,251,927	0 1,186,494	0 1,204,885	0 1,279,653	-- 1,469,317
Contract adjusted salaries, direct-care Median	1,349,559 1,449,244	549,133 1,475,986	1,441,872 1,563,078	1,916,926 1,721,954	-- 2,991,828
Contract hours, direct-care Median	16,972.29 22,725	8,386.27 23,018.5	18,495.41 24,503.48	25,307.00 25,026.5	-- 33,786
Contract wages, direct-care Median	79.52 64.67	65.48 64.53	77.96 65.06	75.75 68.97	-- 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.