Charlotte, N.C.-based Advocate Health recorded an operating income of $380.1 million (3.7% operating margin) during the first quarter of 2026, up from $329.1 million (3.6% margin) during the same period last year, according to its May 27 financial report.
Six things to know:
1. The system reported total operating revenue of $10.2 billion during the three months ended March 31, up from $9.2 billion during the same period last year. Patient service revenue was $8.7 billion, up from $7.8 billion.
2. Total operating expenses were $9.8 billion in Q1 2026, up from $8.8 billion during the same period last year. Salaries, wages and benefits totaled $5.5 billion, up from $5.1 billion. Supplies and drugs totaled $2.2 billion, up from $2 billion. Purchased services and other expenses were $1.7 billion, up from $1.4 billion.
3. Advocate Health’s Medicaid payer mix increased to 22% in Q1 2026 from 17% during the same period last year, while commercial payer mix declined to 45% from 51%.
4. As of March 31, Advocate Health had 269 days cash on hand, down from 283 on Dec. 31.
5. On May 1, Raleigh, N.C.-based WakeMed Health & Hospitals and Charlotte-based Atrium Health — part of Advocate Health — announced plans to combine into a single entity, which the organizations said involves a $2 billion investment in Wake County (N.C.) to expand facilities, grow the workforce and broaden care access across North Carolina. The deal has drawn scrutiny from state officials and Wake County leaders over competition, governance and healthcare costs.
6. Advocate Health reported net income of $640.9 million in Q1 2026, up from $499.5 million during the same period in 2025.
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