CAHMPAS Financial Indicators for Our Hospital CAHMPAS Team North Carolina Rural Health Research and Policy Analysis Center Cecil G. Sheps Center for Health Services Research 725 Martin Luther King, Jr. Boulevard Chapel Hill, NC 27514 CAH.finance@schsr.unc.edu

Profitability: Total Margin Measures the control of expenses relative to revenues 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 3.09% Definition Net income Total revenue

Profitability: Cash Flow Margin Measures the ability to generate cash flow from providing patient care services 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 8.08% Definition Net income – (Contributions, investments, & appropriations + Depreciation expense + Interest expense) Net patient revenue + Other income – Contributions, investments, and appropriations

Profitability: Return on Equity Measures the net income generated by equity investment (net assets) 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 5.97% Definition Net income Net assets

Profitability: Operating Margin Measures the control of operating expenses relative to operating revenues 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 1.79% Definition Net patient revenue + Other revenue – Total operating expenses Net patient revenue + Other revenue

Liquidity: Current Ratio Measures the number of times short-term obligations can be paid using short-term assets 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 2.35 Definition Current assets Current liabilities

Liquidity: Days Cash on Hand Measures the number of days an organization could operate if no cash was collected or received 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 76.26 days Definition Cash + Temporary investments + Investments (Total expenses – Depreciation) / Days in period

Liquidity: Days in Net Accounts Receivable Measures the number of days that it takes an organization to collect its receivables 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 52.46 days Definition Net patient accounts receivable (Net patient revenue) / Days in period

Liquidity: Days in Gross Accounts Receivable Measures revenue cycle performance (compared with days in net accounts receivable) 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 50.37 days Definition Gross patient accounts receivable (Gross patient revenue) / Days in period

Capital Structure: Equity Financing Measures the percentage of total assets financed by equity 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 57.82% Definition Net assets Total assets

Captial Structure: Debt Service Coverage Measures the ability to pay obligations related to long-term debt, principal payments, and interest 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 2.89 times Definition Net income + Depreciation Expense + Interest expense Notes and loans payable (short-term) * (365 / DIP1) + Interest expense 1. Days in Period

Capital Structure: Long-Term Debt to Capitalization Measures the percentage of total capital that is debt 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 27.72% Definition Long-term debt Long-term debt + Net assets

Revenue: Outpatient Revenues to Total Revenues Measures the percentage of total revenues that are for outpatient revenues (e.g., Rural Health Clinics, free-standing clinics, and home health clinics) 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 76.36% Definition Total outpatient revenues Total patient revenues

Revenue: Patient Deductions Measures the allowances and discounts per dollar of total patient revenue 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 42.73% Definition Contractual allowances + Discounts Gross total patient revenue

Revenue: Medicare Inpatient Payer Mix Measures the percentage of total inpatient days that are provided to Medicare patients 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 73.24% Definition Medicare inpatient days Total inpatient days – Nursery bed days – NF Swing bed days

Revenue: Hospital Medicare Outpatient Payer Mix Measures the percentage of total outpatient charges that are for Medicare patients 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 36.83% Definition Hospital outpatient Medicare charges Hospital total outpatient charges

Revenue: Hospital Medicare Outpatient Cost to Charge Measures outpatient Medicare costs per dollar of outpatient Medicare charges 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 0.45 Definition Hospital outpatient Medicare outpatient costs Hospital Medicare outpatient charges

Revenue: Medicare Acute Inpatient Cost per Day Measures the average daily cost of a Medicare acute inpatient 2015 Our Hospital 2015 Median CAH Peer Group State U.S. $2,493 Definition Medicare acute inpatient cost (Medicare inpatient days (excluding HMO))

Cost: Salaries to Net Patient Revenue Measures the percentage of net patient revenue that are labor costs 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 44.68% Definition Salary expense Net patient revenue

Cost: Average Age of Plant Measures the average age in years of the fixed assets of an organization 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 10.18 years Definition Accumulated depreciation Depreciation expense * (365 / DIP1) 1. Days in Period

Cost: FTEs per Adjusted Occupied Bed Measures the number of full-time employees per each occupied bed 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 5.51 FTEs Definition Number of FTEs Adjusted occupied beds1 1. (Inpatient days – NF Swing days – Nursery days) * (Total patient revenue / (Total inpatient revenue – Inpatient NF revenue – Other LTC Revenue)) / Days in period

Cost: Average Salary per FTE Measures the price and mix of labor 2015 Our Hospital 2015 Median CAH Peer Group State U.S. $54,306 Definition Salary expense Number of FTEs

Utilization: Average Daily Census Swing-SNF Beds Measures the average number of swing-SNF beds occupied per day 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 1.53 beds Definition Inpatient swing bed SNF days Days in period

Utilization: Average Daily Census Acute Beds Measures the average number of acute care beds occupied per day 2015 Our Hospital 2015 Median CAH Peer Group State U.S. 2.91 beds Definition Inpatient acute care bed days Days in period

Summary of Results for Our Hospital