Roseville, Calif.-based Adventist Health reported an operating loss of $159 million (-2.2% operating margin) in 2025, an improvement from an operating loss of $224 million (-3.2% margin) in 2024, according to its March 19 financial report.
Adventist Health reported total operating revenue of $7.4 billion for the 12 months ended Dec. 31, up from $6.9 billion during the same period last year. Patient service revenue was $6.6 billion, up from $6.2 billion. Premium revenue was $221 million, up from $213 million.
Total operating expenses were $7.5 billion in 2025, up from $7.1 billion in 2024. Employee compensation was $3.5 billion, up from $3.4 billion. Supply expenses totaled $1.2 billion, up from $1.1 billion. Purchased services and other expenses totaled $1.6 billion, up from $1.4 billion.
The health system said it continued to see positive momentum from bringing its revenue cycle operations in-house.
“The movement of revenue cycle to in-house has improved transparency and teamwork between finance, managed care, and revenue cycle which has shortened the time for issue identification and operating improvement,” the system said in the report. “Results of this collaboration include the identification of managed governmental and commercial payers not paying according to contract and escalating for resolution. Based on these and other actions, net patient revenue per CMI-adjusted discharge was 1.9% higher than prior year.”
Adventist Health also said it implemented a systemwide margin improvement plan in 2025, which drove improved performance. A key component of the plan was automating and reducing its overhead fixed-cost structure. Initiated in August, components of some core business services within IT, finance, human resources, talent acquisition, supply chain and accounts payable functions were outsourced to vendors. The system said the initiative “will improve efficiency, enabling scalable growth and reducing costs, while allowing Adventist Health to retain full management responsibility.”
The system reported net income of $54 million in 2025, compared to a net loss of $121 million in 2024.
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