As of the July, 2022, release via CMS

UNIVERSITY OF WI HOSPITALS & CLINICS

CMS id: 520098
600 HIGHLAND AVE, MADISON WI 53792. County: DANE
System: --
CBSA: Madison, WI

The 624-bed, acute-care hospital had $206,401,263 in net service to patients*, with a total profit margin of 16.55343% in fiscal year 2021, the latest year available.
It spent 1.46% of its operating expenses on uncompensated care and reported $0 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	495 118	498 118	498 119.5	474 118	490 119
Total beds Median	611 162	617 162	626 162	604 162	624 163.5
FTEs Median	8,407.16 788.06	8,588.70 793.42	8,897.29 806.03	9,827.08 787.61	9,336.26 804.34

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	1,737,915,000 150,932,746	1,861,601,000 158,950,878	2,006,130,134 168,696,998	2,055,624,988 163,454,693	2,324,088,319 186,589,412
Operating expenses Median	1,715,334,000 149,311,209	1,776,163,037 156,110,414	1,900,458,353 164,890,568	1,961,456,157 166,516,854	2,117,687,056 180,120,888
Net income from service 2 patients (NS2P) ? Median	22,581,000 -964,173	85,437,963 -643,601.5	105,671,781 -116,254	94,168,831 -5,025,862	206,401,263 -1,284,564
NS2P margin ? Median	1.30% -0.62	4.59% -0.29	5.27% 0.18	4.58% -5.07	8.88% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for UNIVERSITY OF WI HOSPITALS & CLINICS 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	60,836,000 5,089,215	38,687,000 4,572,541	79,945,465 5,268,134	132,176,899 13,092,619	242,649,871 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	0 224,999	0 199,009	0 206,870.5	8,272,958 194,343	4,237,725 249,496
⊳ Line 7: Investments ? ⊳ Median	32,685,000 299,524	8,801,000 188,688.5	54,813,892 370,813	67,561,499 309,361.5	221,623,462 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	0	0	4,467,933	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	51,000	728,000	0	0	0
⊳ Line 21: Rental of vending machines	0	0	0	0	0
⊳ Line 22: Rental of hospital space	0	0	0	2,072,943	2,116,228
⊳ 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	28,100,000	29,158,000	20,663,640	54,269,499	14,672,456
Total income ? Median	83,417,000 6,586,430	124,124,963 6,767,106	185,617,246 8,419,950	226,345,730 8,094,175	449,051,134 15,162,888
Non-operating expenses Median	18,529,000 146,289.5	20,142,000 164,857	20,507,856 89,880.5	24,423,778 106,761	24,167,983 31,473.5
Net income Median	64,888,000 6,043,842	103,982,963 5,845,112	165,109,390 7,606,259	201,921,952 7,283,041	424,883,151 14,957,241
Net margin Median	3.60739% 4.62%	5.47196% 4.42%	7.91483% 5.16%	9.22944% 5.2%	16.55343% 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 UNIVERSITY OF WI HOSPITALS & CLINICS 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	227,133,479 23,241,334	248,441,719 23,709,545	254,882,661 24,248,380	241,543,462 22,858,541	251,207,239 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	225,625,001 21,577,146	246,988,997 22,041,594	253,426,637 22,722,063	240,267,257 21,570,441	249,979,289 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	1,508,478 1,845,420	1,452,722 1,757,392	1,456,024 1,738,842	1,276,205 1,510,463	1,227,950 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	123,078,942 11,160,864	134,344,970 11,987,345	136,796,962 12,926,866	124,646,487 11,884,480	135,624,309 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	119,868,134 10,918,923	131,094,805 11,706,976	133,097,731 12,615,917	124,646,487 11,458,116	135,624,309 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	3,210,808 1,282,808	3,250,165 1,407,728	3,699,231 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	42,887,508 3,284,314	44,462,617 3,250,551	44,087,008 3,386,837	41,347,210 3,360,806	44,475,022 3,508,953
Disproportionate-share hospital (DSH) Median	2,760,235 594,888	3,266,283 595,761	3,687,555 577,894	3,056,358 542,168	3,880,102 549,667
Outlier Median	15,085,028 582,572	16,289,684 538,116	19,264,020 212,434	2,592,257 126,559	2,765,441 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	12,629,994 3,662,910	17,043,498 3,730,911	21,871,002 4,081,319	0 4,643,908	0 4,389,147
Charity care Median	103,310,607 2,654,636	21,630,219 2,940,659	21,580,101 3,380,215	28,547,340 3,488,738	23,180,125 3,233,405
Uncompensated care (UCC) Median	118,344,145 5,147,790	33,426,585 5,337,617	31,821,348 5,711,082	34,579,476 5,923,418	30,832,606 5,508,107
UCC as a % of operating expenses Median	6.90% 3.24	1.88% 3.12	1.67% 3.21	1.76% 3.3	1.46% 2.86
Total shortfall/UCC Median	130,974,139 9,489,989	50,470,083 9,424,297	53,692,350 10,120,158	34,579,476 11,171,337	30,832,606 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	576,144,439 52,142,039	594,101,123 54,485,252	598,488,160 57,395,589	613,048,419 58,830,919	676,101,001 61,722,907
Salaries as a % of operating expenses Median	34.11 36.68	33.21 36.56	31.49 36.37	31.25 35.93	31.93 35.24
Intern, resident salaries* Median	26,651,168 2,598,592	27,942,622 2,686,824	30,860,502 2,753,773	33,036,251 2,937,156	33,300,293 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	9,659,405 1,449,244	3,224,145 1,475,986	3,455,928 1,563,078	9,232,379 1,721,954	12,971,633 2,991,828
Contract hours, direct-care Median	141,439.80 22,725	46,556.00 23,018.5	50,213.80 24,503.48	128,725.73 25,026.5	127,122.00 33,786
Contract wages, direct-care Median	68.29 64.67	69.25 64.53	68.82 65.06	71.72 68.97	102.04 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.