As of the July, 2022, release via CMS

METHODIST WEST HOUSTON HOSPITAL

CMS id: 670077
18500 KATY FREEWAY, HOUSTON TX 77094. County: HARRIS
System: THE METHODIST HOSPITAL- CORPORATE DI
CBSA: Houston-The Woodlands-Sugar Land, TX

The 238-bed, acute-care hospital had $98,984,936 in net service to patients*, with a total profit margin of 20.56775% in fiscal year 2021, the latest year available.
It spent 7.28% of its operating expenses on uncompensated care and reported $812 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	168 118	168 118	194 119.5	194 118	194 119
Total beds Median	193 162	193 162	238 162	238 162	238 163.5
FTEs Median	1,272.00 788.06	1,318.00 793.42	1,441.00 806.03	1,504.00 787.61	1,626.43 804.34

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	291,834,964 150,932,746	308,505,463 158,950,878	345,985,564 168,696,998	375,522,968 163,454,693	481,864,102 186,589,412
Operating expenses Median	268,779,303 149,311,209	269,360,390 156,110,414	306,593,958 164,890,568	336,028,278 166,516,854	382,879,166 180,120,888
Net income from service 2 patients (NS2P) ? Median	23,055,661 -964,173	39,145,073 -643,601.5	39,391,606 -116,254	39,494,690 -5,025,862	98,984,936 -1,284,564
NS2P margin ? Median	7.90% -0.62	12.69% -0.29	11.39% 0.18	10.52% -5.07	20.54% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for METHODIST WEST HOUSTON 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	-1,224,941 5,089,215	1,723,377 4,572,541	293,865 5,268,134	-226,473 13,092,619	155,677 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	0 299,524	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	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	1,157,524	1,132,227	1,215,907	916,047	1,162,886
⊳ 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	76,207	74,323	78,023	66,919	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	11,000	8,450	18,092	15,211	34,078
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	0	0	0	0
⊳ Line 21: Rental of vending machines	5,124	18,816	27,990	16,922	12,992
⊳ Line 22: Rental of hospital space	24,861	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	-2,499,657	489,561	-1,046,147	-1,241,572	-1,054,279
Total income ? Median	21,830,720 6,586,430	40,868,450 6,767,106	39,685,471 8,419,950	39,268,217 8,094,175	99,140,613 15,162,888
Non-operating expenses Median	95,750 146,289.5	2,947,962 164,857	-6,900 89,880.5	0 106,761	0 31,473.5
Net income Median	21,734,970 6,043,842	37,920,488 5,845,112	39,692,371 7,606,259	39,268,217 7,283,041	99,140,613 14,957,241
Net margin Median	7.47908% 4.62%	12.22339% 4.42%	11.46253% 5.16%	10.46325% 5.2%	20.56775% 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 METHODIST WEST HOUSTON 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	32,897,185 23,241,334	36,435,148 23,709,545	40,887,517 24,248,380	40,258,060 22,858,541	45,198,403 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	32,897,185 21,577,146	36,435,148 22,041,594	40,887,517 22,722,063	40,258,060 21,570,441	45,198,403 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	13,461,562 11,160,864	16,449,151 11,987,345	19,532,358 12,926,866	19,101,465 11,884,480	24,143,390 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	13,461,562 10,918,923	16,449,151 11,706,976	19,532,358 12,615,917	19,101,465 11,458,116	24,143,390 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	0 3,284,314	0 3,250,551	0 3,386,837	0 3,360,806	0 3,508,953
Disproportionate-share hospital (DSH) Median	693,267 594,888	691,552 595,761	1,392,839 577,894	1,260,931 542,168	1,184,022 549,667
Outlier Median	1,752,157 582,572	2,048,572 538,116	550,243 212,434	505,636 126,559	695,134 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	11,883 3,662,910	29,478 3,730,911	0 4,081,319	30,246 4,643,908	812 4,389,147
Charity care Median	18,971,475 2,654,636	13,895,626 2,940,659	19,571,699 3,380,215	27,138,803 3,488,738	25,039,844 3,233,405
Uncompensated care (UCC) Median	23,693,183 5,147,790	20,151,839 5,337,617	24,161,954 5,711,082	29,709,468 5,923,418	27,863,825 5,508,107
UCC as a % of operating expenses Median	8.82% 3.24	7.48% 3.12	7.88% 3.21	8.84% 3.3	7.28% 2.86
Total shortfall/UCC Median	23,705,066 9,489,989	20,181,317 9,424,297	24,161,954 10,120,158	29,739,714 11,171,337	27,864,637 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	90,144,795 52,142,039	96,257,868 54,485,252	109,167,125 57,395,589	117,665,449 58,830,919	134,917,482 61,722,907
Salaries as a % of operating expenses Median	37.07 36.68	35.74 36.56	35.61 36.37	35.02 35.93	35.24 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	1,583,520 1,449,244	1,405,674 1,475,986	1,808,515 1,563,078	2,440,440 1,721,954	6,658,227 2,991,828
Contract hours, direct-care Median	15,666.00 22,725	12,297.00 23,018.5	14,469.00 24,503.48	26,911.00 25,026.5	61,293.00 33,786
Contract wages, direct-care Median	101.08 64.67	114.31 64.53	124.99 65.06	90.69 68.97	108.63 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.