Despite facing headwinds like increased labor and supply costs, several health systems reported positive operating performance in the first half of fiscal 2026 after recording operating losses during the same period last year.
Here are four health systems that drove operating margins back into the black for the six months ended Dec. 31:
1. Springfield, Ill.-based Hospital Sisters Health System recorded an operating income of $2.9 million (0.2% operating margin) in the first half of fiscal 2026, up from an operating loss of $6.1 million (-0.4% margin) during the same period last year.
2. Annapolis, Md.-based Luminis Health recorded an operating income of $4 million (0.6% operating margin) in the first half of fiscal 2026, up from an operating loss of $8.8 million (-1.4% margin) during the same period last year.
3. Radnor Township, Pa.-based Main Line Health recorded an operating income of $8.7 million (0.6% operating margin) in the first half of fiscal 2026, up from an operating loss of $8.9 million (-0.7% margin) during the same period last year.
4. St. Louis-based Mercy recorded an operating income of $176.1 million (3.3% operating margin) in the first half of fiscal 2026, up from an operating loss of $19.1 million (-0.4% margin) during the same period last year.
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