Roseville, Calif.-based Adventist Health recorded an operating loss of $34 million (-1.8% operating margin) in the first quarter of 2026, an improvement from an operating loss of $42 million (-2.3% margin) during the same period last year, according to its May 29 financial report.
Adventist Health reported total operating revenue of $1.9 billion during the three months ended March 31, up from $1.8 billion during the same period last year. Patient service revenue was $1.7 billion, up from $1.6 billion. Premium revenue was $62 million, up from $54 million.
The system said it continued to see positive momentum from bringing revenue cycle operations in-house. The move has resulted in 53 days in AR and cash collections of $1.3 billion — or 98% of goal — as of March 31.
Total operating expenses were $1.92 billion in Q1 2026, up from $1.86 billion during the same period last year. Employee compensation was $879 million, up from $868 million. Professional fees totaled $237 million, up from $230 million. Supply expenses totaled $294 million, up from $272 million. Purchased services and other expenses totaled $418 million, up from $396 million.
Adventist said labor costs as a percentage of total operating revenue decreased from 59% in Q1 2025 to 57.7% in Q1 2026.
Adventist implemented a systemwide margin improvement plan in 2025, which it said has driven improved performance. A key component of the plan was automating and reducing its overhead fixed-cost structure. Initiated in August 2025, 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 reported a net loss of $72 million in Q1 2026, compared to a net loss of $26 million during the same period last year.
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