Dallas-based Baylor Scott & White Health recorded an operating income of $518 million (11.3% margin) in the first quarter of fiscal 2026, up from an operating income of $369 million (9.1% margin) during the same period last year, according to its Nov. 14 financial report.
Total operating revenue for the three months ended Sept. 30 was $4.6 billion, a 13.5% increase year over year. Net patient care revenue increased 12.4% year over year to $3.6 billion, driven by increased acuity, updated managed care contracts and favorable payer and service mixes. Premium revenue increased 11.8% to $748 million, primarily due to growth in individual exchange and Medicare Advantage, coupled with premium increases for members of these plans.
Total operating expenses grew 10.8% year over year to $4.1 billion. Salaries, wages and benefits increased 8.7% to $1.9 billion. Supplies and other expenses grew 9.9% to $1.6 billion. Medical claims increased 20.9% to $446 million, primarily due to growth in individual exchange and Medicare Advantage members as well as increases in medical and pharmaceutical drug costs.
The system recorded a net income of $990 million in the first quarter, up from $676 million during the same period last year.
