Cleveland Clinic reported an operating income of $255.3 million (5.6% operating margin) during the second quarter of 2025, up from $45 million (1.2% margin) during the same period last year, according to the system’s Aug. 14 financial report.
Total operating revenue was $4.5 billion for the three months ended June 30, a 15.2% increase year over year. One contributor to revenue growth in the quarter was a $146 million gain in insurance premium revenue related to new Medicare Advantage delegated premium and risk agreements that took effect Jan. 1.
Total operating expenses were $4.1 billion in the quarter, a 10% increase year over year. The system said the rise was driven by growth in patients served, inflationary trends that increased personnel and pharmaceutical costs, and expenses associated with the new delegated premium and risk agreements.
Cleveland Clinic said it has implemented initiatives to stabilize its workforce, including reducing reliance on agency personnel and premium labor, which allowed it to manage the year-over-year increase in personnel costs to 4.6% in the quarter.
As of June 30, the system had 309 days cash on hand, down from 315 on Dec. 31. Cleveland Clinic had a long-term debt of $4.8 billion at the end of the second quarter, up from $4.6 billion on Dec. 31.
The system reported a net income of $763.2 million in the quarter, up from $187.8 million during the same period last year.
“Cleveland Clinic remains financially stable as demand for our healthcare services continues to grow for both domestic and international markets, especially for patients needing more complex levels of care,” the system said in a statement shared with Becker’s. “To ensure long-term sustainability, we continue to diversify our revenue streams and carefully manage our expense base in line with patients served.”
