Brown University Health recorded an operating loss of $17.6 million (-1.5% operating margin) in the first quarter of fiscal 2026, down from an operating income of $17.7 million (1.7% margin) during the same period last year.
Five things to know:
1. For the three months ended Dec. 31, Brown Health’s same-store operating revenues increased 3.4% compared to the same period in 2024, while operating expenses increased 6.7%, resulting in a $34.3 million decline in operating performance year over year.
2. Total operating revenue in the first quarter of 2026 was $1.2 billion, up from $1.1 billion during the same period last year. Patient service revenue was $984.3 million, up from $904.4 million. Other revenue was $154.7 million, up from $96.2 million.
3. Total operating expenses were $1.2 billion in the first quarter of 2026, up from $1 billion during the same period last year. Compensation and benefits totaled $660.4 million, up from $583 million. Supplies and other expenses were $372.8 million, up from $290.2 million. Purchased services were $59.5 million, down from $70.3 million.
4. Brown Health Medical Group on Oct. 1 merged with Brown Physicians, a multispecialty practice group led by faculty affiliated with Brown University’s medical school. The merger unified more than 1,500 providers across Rhode Island and the region. The merger added $90.8 million in net assets to the health system. In the first quarter, the merged group recorded $89.4 million in revenue and $90.5 million in operating costs, resulting in an operating loss of $1.1 million.
5. The system reported a net income of $79.1 million in the first quarter of 2026, up from $8.2 million during the same period last year.
