As of the July, 2022, release via CMS

VALLEY MEDICAL CENTER

CMS id: 500088
400 SOUTH 43RD STREET, RENTON WA 98058. County: KING
System: --
CBSA: Seattle-Tacoma-Bellevue, WA

The 330-bed, acute-care hospital had $-101,380,753 in net service to patients*, with a total profit margin of 1.13422% in fiscal year 2021, the latest year available.
It spent 1.40% of its operating expenses on uncompensated care and reported $22,499,086 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	gov	gov	gov	gov	gov
Acute beds Median	295 118	311 118	311 119.5	331 118	330 119
Total beds Median	295 162	311 162	311 162	331 162	330 163.5
FTEs Median	3,050.87 788.06	3,133.54 793.42	3,295.81 806.03	3,450.59 787.61	3,523.96 804.34

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	544,658,033 150,932,746	598,620,250 158,950,878	622,817,721 168,696,998	639,969,581 163,454,693	707,367,055 186,589,412
Operating expenses Median	610,808,799 149,311,209	632,006,494 156,110,414	689,893,626 164,890,568	753,958,912 166,516,854	808,747,808 180,120,888
Net income from service 2 patients (NS2P) ? Median	-66,150,766 -964,173	-33,386,244 -643,601.5	-67,075,905 -116,254	-113,989,331 -5,025,862	-101,380,753 -1,284,564
NS2P margin ? Median	-12.15% -0.62	-5.58% -0.29	-10.77% 0.18	-17.81% -5.07	-14.33% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for VALLEY 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	66,424,361 5,089,215	91,039,362 4,572,541	91,442,453 5,268,134	133,470,205 13,092,619	131,044,101 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	184,050 224,999	236,110 199,009	87,512 206,870.5	157,045 194,343	430,364 249,496
⊳ Line 7: Investments ? ⊳ Median	4,416,828 299,524	4,277,316 188,688.5	4,001,390 370,813	4,269,673 309,361.5	2,836,680 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	32,547	21,289	13,148	6,233	6,312
⊳ Line 11: Rebates and refunds of expenses	56,040	14,510	15,087	14,479	7,466
⊳ 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	3,138,159	3,274,062	3,282,657	2,943,752	1,886,033
⊳ Line 15: Revenue from rental of living quarters	17,374	15,271	14,556	14,556	14,556
⊳ Line 16: Revenue from sale of medical and surgical supplies	7,465	10,640	8,600	8,092	8,861
⊳ Line 17: Revenue from sale of drugs to other than patients	16,017,360	24,049,642	43,900,129	56,771,850	64,867,699
⊳ Line 18: Revenue from sale of medical records and abstracts	61,155	40,218	44,158	60,922	41,379
⊳ 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	22,000	26,000	24,000	24,262	24,000
⊳ Line 22: Rental of hospital space	307,141	316,677	326,523	369,589	404,837
⊳ 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	42,045,101	58,667,157	39,651,187	68,760,575	60,448,409
Total income ? Median	273,595 6,586,430	57,653,118 6,767,106	24,366,548 8,419,950	19,480,874 8,094,175	29,663,348 15,162,888
Non-operating expenses Median	22,453,553 146,289.5	17,572,736 164,857	12,465,675 89,880.5	11,649,363 106,761	20,153,898 31,473.5
Net income Median	-22,179,958 6,043,842	40,080,382 5,845,112	11,900,873 7,606,259	7,831,511 7,283,041	9,509,450 14,957,241
Net margin Median	-3.62962% 4.62%	5.81162% 4.42%	1.66618% 5.16%	1.01256% 5.2%	1.13422% 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 VALLEY 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	69,747,518 23,241,334	67,181,616 23,709,545	69,299,141 24,248,380	62,101,955 22,858,541	59,835,555 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	69,747,518 21,577,146	67,181,616 22,041,594	69,299,141 22,722,063	62,101,955 21,570,441	59,835,555 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	40,564,183 11,160,864	46,410,499 11,987,345	47,365,817 12,926,866	51,236,103 11,884,480	55,340,496 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	40,564,183 10,918,923	46,410,499 11,706,976	47,365,817 12,615,917	51,236,103 11,458,116	55,340,496 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	3,286,808 3,284,314	3,152,909 3,250,551	3,185,723 3,386,837	2,945,426 3,360,806	2,842,237 3,508,953
Disproportionate-share hospital (DSH) Median	3,148,710 594,888	3,008,268 595,761	3,094,891 577,894	2,689,246 542,168	2,493,691 549,667
Outlier Median	2,830,667 582,572	1,828,220 538,116	1,925,108 212,434	576,260 126,559	608,236 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	21,635,022 3,662,910	18,828,640 3,730,911	28,496,844 4,081,319	28,452,761 4,643,908	22,499,086 4,389,147
Charity care Median	5,807,655 2,654,636	9,790,800 2,940,659	7,889,360 3,380,215	9,385,598 3,488,738	8,076,573 3,233,405
Uncompensated care (UCC) Median	9,248,722 5,147,790	15,282,312 5,337,617	12,330,511 5,711,082	13,406,636 5,923,418	11,353,247 5,508,107
UCC as a % of operating expenses Median	1.51% 3.24	2.42% 3.12	1.79% 3.21	1.78% 3.3	1.40% 2.86
Total shortfall/UCC Median	30,883,744 9,489,989	34,110,952 9,424,297	40,827,355 10,120,158	41,859,397 11,171,337	33,852,333 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	291,691,442 52,142,039	313,029,193 54,485,252	345,403,482 57,395,589	378,261,582 58,830,919	400,591,836 61,722,907
Salaries as a % of operating expenses Median	46.39 36.68	48.42 36.56	48.99 36.37	49.12 35.93	49.21 35.24
Intern, resident salaries* Median	1,374,712 2,598,592	1,549,178 2,686,824	1,514,690 2,753,773	1,590,811 2,937,156	1,587,286 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	3,104,146 1,449,244	2,785,595 1,475,986	3,012,264 1,563,078	3,892,697 1,721,954	8,096,142 2,991,828
Contract hours, direct-care Median	42,304.00 22,725	37,690.00 23,018.5	35,453.00 24,503.48	45,407.15 25,026.5	89,357.00 33,786
Contract wages, direct-care Median	73.38 64.67	73.91 64.53	84.96 65.06	85.73 68.97	90.60 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.