Cost report takeaways: Rehabilitation hospitals have a solid 2022

Here are five takeaway estimates from the cost reports for 262 rehabilitation health hospitals that reported for complete fiscal years 2021 and 2022. See more data about rehabilitation hospitals and other hospital types in Modern Healthcare's Data + Insights.

1) Median net patient revenue increased.

2) Net patient revenue was concentrated at the top.

The 25 hospitals with the most net patient revenue in fiscal 2022 accounted for a third of all net patient revenue among hospitals examined.

3) Median operating expenses increased.

Median reported operating expenses increased more in 2022 than did median reported net patient revenue.

4) Median operating margin fell, but still remained positive.

Operating margins are calculated in this case by dividing net service to patients (net patient revenue minus operating expenses) by net patient revenue. The Medicaid and CHIP Payment and Access Commission considers net service to patients as equivalent to operating income.

5) Nearly half of operating expenses went toward salaries.

At the median, salaries as a percentage of operating expenses stayed flat.

Data come from cost reports for 262 rehabilitation health hospitals that reported complete fiscal 2021 and 2022 information, and reported total patient revenue greater than zero, to the Centers for Medicare and Medicaid Services. Numbers are rounded.