Southfield, Mich.-based Corewell Health reported an operating income of $276 million (1.6% margin) in 2025, up from $208 million (1.3% margin) in 2024, according to audited financial statements published Feb. 27.
Seven things to know:
1. The 21-hospital system saw operating revenue increase 7.5% year over year to $17.6 billion in 2025. Net patient service revenue totaled $9.8 billion, up from $9.1 billion in 2024, while premium revenue rose to $7.4 billion from $6.9 billion.
2. Operating expenses increased 7.2% year over year to $17.4 billion. Labor costs climbed to $6.3 billion from $5.9 billion in 2024, and healthcare claims expense increased to $5.7 billion from $5.3 billion.
3. Investment returns reached $1.1 billion in 2025, up from $734 million in 2024. After accounting for other nonoperating items, total other nonoperating revenue was $1 billion, compared to $717 million a year earlier.
4. Corewell Health reported a net income of $1.3 billion in 2025, compared to $921 million in 2024. Total margin was 6.8%, up from 5.4% in the prior year.
5. Total assets were $18.5 billion as of Dec. 31, 2025, up from $16.8 billion at year-end 2024. Total net assets increased to $12.5 billion from $11.1 billion.
6. Total cash and investments increased to $9.9 billion as of Dec. 31, 2025, up $1.3 billion from the prior year. Days cash on hand rose to 214.4 from 200.2 in 2024.
7. Long-term debt was $1.9 billion at year-end 2025, the same as the year prior. The system’s total debt-to-capitalization ratio improved to 16.8% from 18% a year earlier.
