As of the July, 2022, release via CMS

KADLEC REGIONAL MEDICAL CENTER

CMS id: 500058
888 SWIFT BOULEVARD, RICHLAND WA 99352. County: BENTON
System: PROVIDENCE HEALTH & SERVICES
CBSA: Kennewick-Richland, WA

The 300-bed, acute-care hospital had $-26,267,417 in net service to patients*, with a total profit margin of 6.19958% in fiscal year 2021, the latest year available.
It spent 1.93% of its operating expenses on uncompensated care and reported $32,510,965 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	201 118	201 118	201 119.5	201 118	241 119
Total beds Median	270 162	270 162	260 162	260 162	300 163.5
FTEs Median	2,785.63 788.06	2,985.19 793.42	2,973.77 806.03	2,896.66 787.61	2,918.94 804.34

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	595,778,692 150,932,746	640,403,685 158,950,878	654,835,854 168,696,998	675,388,060 163,454,693	736,160,913 186,589,412
Operating expenses Median	533,903,597 149,311,209	595,290,741 156,110,414	684,109,694 164,890,568	708,858,390 166,516,854	762,428,330 180,120,888
Net income from service 2 patients (NS2P) ? Median	61,875,095 -964,173	45,112,944 -643,601.5	-29,273,840 -116,254	-33,470,330 -5,025,862	-26,267,417 -1,284,564
NS2P margin ? Median	10.39% -0.62	7.04% -0.29	-4.47% 0.18	-4.96% -5.07	-3.57% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for KADLEC REGIONAL 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	25,410,885 5,089,215	6,016,486 4,572,541	61,546,724 5,268,134	106,223,683 13,092,619	76,658,785 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	2,979,337 224,999	1,883,520 199,009	2,424,911 206,870.5	7,549,119 194,343	-1,445,718 249,496
⊳ Line 7: Investments ? ⊳ Median	16,069,404 299,524	-9,479,682 188,688.5	30,629,571 370,813	39,676,680 309,361.5	27,396,345 375,329
⊳ 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	0	0	0	0	0
⊳ 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	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	27,538	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	6,334,606	13,612,648	28,492,242	58,997,884	50,708,158
Total income ? Median	87,285,980 6,586,430	51,129,430 6,767,106	32,272,884 8,419,950	72,753,353 8,094,175	50,391,368 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	36 89,880.5	0 106,761	0 31,473.5
Net income Median	87,285,980 6,043,842	51,129,430 5,845,112	32,272,848 7,606,259	72,753,353 7,283,041	50,391,368 14,957,241
Net margin Median	14.05142% 4.62%	7.90963% 4.42%	4.50497% 5.16%	9.30812% 5.2%	6.19958% 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 KADLEC REGIONAL 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	88,748,960 23,241,334	88,168,831 23,709,545	92,281,095 24,248,380	92,682,100 22,858,541	93,612,834 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	84,912,475 21,577,146	84,061,222 22,041,594	88,699,122 22,722,063	88,298,466 21,570,441	90,594,333 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	3,836,485 3,535,627	4,107,609 3,746,588	3,581,973 3,782,288	4,383,634 3,865,578	3,018,501 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	81,439,303 11,160,864	80,839,413 11,987,345	82,366,267 12,926,866	78,081,068 11,884,480	92,448,053 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	81,439,303 10,918,923	80,839,413 11,706,976	82,366,267 12,615,917	78,081,068 11,458,116	92,448,053 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	2,807,152 3,284,314	3,181,813 3,250,551	3,651,373 3,386,837	4,265,354 3,360,806	3,893,543 3,508,953
Disproportionate-share hospital (DSH) Median	3,540,084 594,888	3,371,192 595,761	2,977,491 577,894	3,496,331 542,168	3,571,043 549,667
Outlier Median	5,374,424 582,572	5,134,480 538,116	1,344,796 212,434	862,379 126,559	1,139,869 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	43,198,912 3,662,910	41,700,312 3,730,911	43,396,301 4,081,319	29,645,161 4,643,908	32,510,965 4,389,147
Charity care Median	9,478,995 2,654,636	11,184,752 2,940,659	14,106,379 3,380,215	11,847,037 3,488,738	10,440,471 3,233,405
Uncompensated care (UCC) Median	13,511,960 5,147,790	15,029,293 5,337,617	16,853,661 5,711,082	19,150,183 5,923,418	14,701,618 5,508,107
UCC as a % of operating expenses Median	2.53% 3.24	2.52% 3.12	2.46% 3.21	2.70% 3.3	1.93% 2.86
Total shortfall/UCC Median	56,710,872 9,489,989	56,729,605 9,424,297	60,249,962 10,120,158	48,795,344 11,171,337	47,212,583 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	248,832,182 52,142,039	269,365,465 54,485,252	274,856,756 57,395,589	284,177,539 58,830,919	298,928,754 61,722,907
Salaries as a % of operating expenses Median	51.40 36.68	50.73 36.56	49.64 36.37	49.65 35.93	50.39 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	414,098 1,449,244	3,090,238 1,475,986	1,520,489 1,563,078	1,805,512 1,721,954	4,952,638 2,991,828
Contract hours, direct-care Median	5,317.00 22,725	53,853.66 23,018.5	30,822.00 24,503.48	37,700.00 25,026.5	76,722.00 33,786
Contract wages, direct-care Median	77.88 64.67	57.38 64.53	49.33 65.06	47.89 68.97	64.55 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.