Cincinnati-based Bon Secours Mercy Health recorded an operating income of $97.7 million (2.6% operating margin) during the first quarter of 2026, compared to an operating income of $96.5 million (2.8% margin) during the same period last year, according to its May 26 financial report.
Five things to know:
1. Bon Secours reported total operating revenue of $3.7 billion for the three months ended March 31, up 9.8% year over year. Net patient service revenue grew 10.9%, primarily driven by increased reimbursement from supplemental state Medicaid programs. Revenue from supplemental state programs totaled $442.1 million in Q1, up from $238.7 million during the same period last year.
2. Total operating expenses were $3.6 billion in Q1, up 9.6% year over year. Employee compensation increased 4.1% to $1.7 billion. Supply expenses increased 10.5% to $768.1 million. Other operating expenses increased 31.5% to $497.1 million, driven by increased provider fees related to supplemental state Medicaid programs.
3. The system said it is continuing to implement initiatives focused on labor utilization and rates of pay. These initiatives helped improve total employee compensation as a percentage of net patient service revenue from 52.4% in Q1 2025 to 49.2% in Q1 2026.
4. As of March 31, Bon Secours had 222 days cash on hand, up from 220 on Dec. 31.
5. Bon Secours reported net income of $69.7 million in Q1, down from $167.9 million during the same period last year.
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