Roseville, Calif.-based Adventist Health recorded an operating loss of $53 million (-1.4% margin) in the first half of 2026, narrowed from an $81 million loss (-2.2% margin) in the same period last year, according to its Aug. 28 financial report.
Six things to know:
1. Adventist reported total operating revenue of $3.8 billion for the six months ended June 30, up from $3.7 billion during the same period last year. Patient service revenue was $3.4 billion, up from $3.3 billion. Premium revenue was $129 million, up from $110 million. Other revenue declined to $227 million from $300 million, reflecting the absence of $96 million in one-time FEMA relief revenue recognized in the same period last year.
2. Total expenses were $3.85 billion in the first half of 2026, up from $3.76 billion during the same period in 2025. Employee compensation was essentially flat at $1.7 billion, which Adventist said reflects labor cost stabilization efforts, with labor costs falling to 57.3% of total operating revenue from 58.6%. Professional fees rose to $483 million from $460 million, supplies rose to $598 million from $559 million, and purchased services and other expenses rose to $838 million from $802 million.
3. Adventist said a focus on yield improvement helps increase net patient revenue year over year. The system also said it is continuing to see gains from moving its revenue cycle operations in-house, a transition management credited with faster issue identification and improved payer collaboration. Days in accounts receivable improved to 55.5 as of June 30, down from 56 a year earlier, while cash collections rose to $2.7 billion from $2.6 billion over the same comparison. Net patient revenue per CMI-adjusted discharge, a yield metric, rose 3.8% year over year, building on a 3.2% increase over the same period the year before.
4. Outpatient visits rose to 1,115,985 in the first half of 2026 from 1,093,610 during the same period last year. Clinic visits rose to 1,595,692 from 1,570,205. Outpatient revenue as a share of gross patient revenue rose to 51% from 49.7%.
5. Adventist on Aug. 30 completed a systemwide Epic rollout spanning 27 hospitals and more than 440 clinics across California, Oregon and Hawaii, marking the largest technology implementation in the health system’s history. The system said it expects increased costs in the third quarter tied to the transition, with additional revenue-yield opportunities anticipated after stabilization.
6. The system reported a net income of $41 million, up from $34 million during the same period last year.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
