As of the July, 2022, release via CMS

HOUSTON METHODIST THE WOODLANDS

CMS id: 670122
17201 INTERSTATE 45, THE WOODLANDS TX 77385. County: MONTGOMERY
System: THE METHODIST HOSPITAL - COPORATE DI
CBSA: Houston-The Woodlands-Sugar Land, TX

The 186-bed, acute-care hospital had $93,190,885 in net service to patients*, with a total profit margin of 20.22130% in fiscal year 2021, the latest year available.
It spent 5.22% 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	161	365	365	366	365
Ownership	nfp	nfp	nfp	nfp	nfp
Acute beds Median	123 118	130 118	161 119.5	161 118	161 119
Total beds Median	139 162	146 162	186 162	186 162	186 163.5
FTEs Median	347.01 788.06	883.98 793.42	1,111.12 806.03	1,261.33 787.61	1,420.99 804.34

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	79,935,723 150,932,746	230,096,639 158,950,878	341,633,405 168,696,998	349,481,450 163,454,693	469,341,072 186,589,412
Operating expenses Median	77,982,482 149,311,209	202,941,206 156,110,414	263,893,620 164,890,568	307,490,268 166,516,854	376,150,187 180,120,888
Net income from service 2 patients (NS2P) ? Median	1,953,241 -964,173	27,155,433 -643,601.5	77,739,785 -116,254	41,991,182 -5,025,862	93,190,885 -1,284,564
NS2P margin ? Median	2.44% -0.62	11.80% -0.29	22.76% 0.18	12.02% -5.07	19.86% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for HOUSTON METHODIST THE WOODLANDS 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	1,993,785 5,089,215	1,538,996 4,572,541	973,908 5,268,134	1,221,590 13,092,619	2,150,913 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	344,483	971,146	1,284,045	1,037,779	1,297,576
⊳ Line 15: Revenue from rental of living quarters	0	0	0	0	0
⊳ Line 16: Revenue from sale of medical and surgical supplies	1,352	19,063	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	40,123	42,672	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	0	4,106	2,610	16,487
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	90,936	264,124	295,972	284,788	382,128
⊳ Line 21: Rental of vending machines	1,084	14,206	20,155	15,205	11,562
⊳ Line 22: Rental of hospital space	0	19,876	87,020	67,912	52,121
⊳ 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	1,555,930	250,581	-757,513	-229,376	391,039
Total income ? Median	3,947,026 6,586,430	28,694,429 6,767,106	78,713,693 8,419,950	43,212,772 8,094,175	95,341,798 15,162,888
Non-operating expenses Median	100,630 146,289.5	25,000 164,857	14,592 89,880.5	0 106,761	0 31,473.5
Net income Median	3,846,396 6,043,842	28,669,429 5,845,112	78,699,101 7,606,259	43,212,772 7,283,041	95,341,798 14,957,241
Net margin Median	4.69476% 4.62%	12.37695% 4.42%	22.97064% 5.16%	12.32176% 5.2%	20.22130% 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 HOUSTON METHODIST THE WOODLANDS 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	8,945,042 23,241,334	26,461,001 23,709,545	41,189,637 24,248,380	42,238,766 22,858,541	52,067,609 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	8,945,042 21,577,146	26,461,001 22,041,594	41,189,637 22,722,063	42,238,766 21,570,441	52,067,609 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	4,573,956 11,160,864	15,037,084 11,987,345	21,412,631 12,926,866	22,991,654 11,884,480	28,286,716 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	4,573,956 10,918,923	15,037,084 11,706,976	21,412,631 12,615,917	22,991,654 11,458,116	28,286,716 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	0 594,888	0 595,761	0 577,894	0 542,168	0 549,667
Outlier Median	1,997,761 582,572	4,814,251 538,116	4,149,154 212,434	1,226,387 126,559	1,042,995 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	1,584,067 3,662,910	700 3,730,911	18,163 4,081,319	0 4,643,908	0 4,389,147
Charity care Median	2,019,043 2,654,636	7,079,412 2,940,659	12,290,479 3,380,215	16,405,058 3,488,738	17,747,054 3,233,405
Uncompensated care (UCC) Median	2,201,873 5,147,790	9,495,719 5,337,617	14,337,803 5,711,082	17,894,065 5,923,418	19,648,123 5,508,107
UCC as a % of operating expenses Median	2.82% 3.24	4.68% 3.12	5.43% 3.21	5.82% 3.3	5.22% 2.86
Total shortfall/UCC Median	3,785,940 9,489,989	9,496,419 9,424,297	14,355,966 10,120,158	17,894,065 11,171,337	19,648,123 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	26,462,591 52,142,039	64,737,504 54,485,252	84,871,901 57,395,589	97,475,225 58,830,919	118,700,883 61,722,907
Salaries as a % of operating expenses Median	33.93 36.68	31.90 36.56	32.16 36.37	31.70 35.93	31.56 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	99,972 1,449,244	450,740 1,475,986	388,695 1,563,078	5,422,839 1,721,954	7,038,049 2,991,828
Contract hours, direct-care Median	770.00 22,725	3,454.00 23,018.5	3,732.00 24,503.48	60,437.00 25,026.5	58,014.00 33,786
Contract wages, direct-care Median	129.83 64.67	130.50 64.53	104.15 65.06	89.73 68.97	121.32 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.