As of the July, 2022, release via CMS

MERCY HEALTH SYSTEM CORPORATION

CMS id: 520066
1000 MINERAL POINT AVE, JANESVILLE WI 53547. County: ROCK
System: MERCY HOME OFFICE
CBSA: Janesville-Beloit, WI

The 237-bed, acute-care hospital had $-419,033,411 in net service to patients*, with a total profit margin of 12.56218% in fiscal year 2021, the latest year available.
It spent 0.82% of its operating expenses on uncompensated care and reported $3,233,656 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	167 118	167 118	181 119.5	181 118	181 119
Total beds Median	223 162	223 162	237 162	237 162	237 163.5
FTEs Median	2,514.84 788.06	2,514.84 793.42	2,108.26 806.03	1,989.02 787.61	2,282.56 804.34

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	450,829,263 150,932,746	584,623,761 158,950,878	622,241,561 168,696,998	565,827,613 163,454,693	139,653,956 186,589,412
Operating expenses Median	440,329,513 149,311,209	563,309,363 156,110,414	594,254,784 164,890,568	548,660,214 166,516,854	558,687,367 180,120,888
Net income from service 2 patients (NS2P) ? Median	10,499,750 -964,173	21,314,398 -643,601.5	27,986,777 -116,254	17,167,399 -5,025,862	-419,033,411 -1,284,564
NS2P margin ? Median	2.33% -0.62	3.65% -0.29	4.50% 0.18	3.03% -5.07	-300.05% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MERCY HEALTH SYSTEM CORPORATION 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	6,125,570 5,089,215	1,071,388 4,572,541	-3,015,613 5,268,134	30,089,270 13,092,619	499,299,949 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	2,603,253 299,524	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	30,161	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	985,247	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	112	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	13,388	0	0	0	0
⊳ Line 22: Rental of hospital space	21,947	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	2,471,462	1,071,388	-3,015,613	30,089,270	499,299,949
Total income ? Median	16,625,320 6,586,430	22,385,786 6,767,106	24,971,164 8,419,950	47,256,669 8,094,175	80,266,538 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	16,625,320 6,043,842	22,385,786 5,845,112	24,971,164 7,606,259	47,256,669 7,283,041	80,266,538 14,957,241
Net margin Median	3.63829% 4.62%	3.82209% 4.42%	4.03264% 5.16%	7.93008% 5.2%	12.56218% 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 MERCY HEALTH SYSTEM CORPORATION 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	33,598,915 23,241,334	34,504,756 23,709,545	28,011,797 24,248,380	25,313,782 22,858,541	26,312,112 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	30,578,050 21,577,146	32,047,350 22,041,594	26,613,493 22,722,063	23,944,783 21,570,441	24,920,226 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	1,316,316 3,535,627	712,241 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	1,704,549 1,203,033	1,745,165 1,215,295	1,398,304 1,313,657	1,368,999 1,365,298	1,391,886 1,179,746
All outpatient revenue Median Click here to show/hide details	35,432,188 11,160,864	35,452,102 11,987,345	35,506,828 12,926,866	32,456,714 11,884,480	33,779,060 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	35,432,188 10,918,923	35,452,102 11,706,976	35,506,828 12,615,917	32,456,714 11,458,116	33,779,060 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	2,071,242 3,284,314	2,312,425 3,250,551	1,838,422 3,386,837	1,812,639 3,360,806	1,802,027 3,508,953
Disproportionate-share hospital (DSH) Median	939,271 594,888	821,572 595,761	631,612 577,894	550,277 542,168	548,668 549,667
Outlier Median	2,542,569 582,572	1,339,559 538,116	1,610,480 212,434	944,462 126,559	593,514 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	10,605,901 3,662,910	6,014,514 3,730,911	958,045 4,081,319	0 4,643,908	3,233,656 4,389,147
Charity care Median	467,574 2,654,636	338,369 2,940,659	467,287 3,380,215	1,102,596 3,488,738	1,945,114 3,233,405
Uncompensated care (UCC) Median	2,970,069 5,147,790	5,685,911 5,337,617	4,357,344 5,711,082	5,060,196 5,923,418	4,574,491 5,508,107
UCC as a % of operating expenses Median	0.67% 3.24	1.01% 3.12	0.73% 3.21	0.92% 3.3	0.82% 2.86
Total shortfall/UCC Median	13,575,970 9,489,989	11,700,425 9,424,297	5,315,389 10,120,158	5,060,196 11,171,337	7,808,147 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	236,950,661 52,142,039	247,999,806 54,485,252	255,152,425 57,395,589	250,848,217 58,830,919	239,934,269 61,722,907
Salaries as a % of operating expenses Median	50.76 36.68	49.25 36.56	50.46 36.37	51.35 35.93	48.33 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	1,173,529 1,449,244	2,746,708 1,475,986	2,923,181 1,563,078	2,127,024 1,721,954	1,533,530 2,991,828
Contract hours, direct-care Median	16,606.00 22,725	41,382.00 23,018.5	45,202.00 24,503.48	32,296.00 25,026.5	21,236.22 33,786
Contract wages, direct-care Median	70.67 64.67	66.37 64.53	64.67 65.06	65.86 68.97	72.21 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.