Lebanon, N.H.-based Dartmouth Health recorded an operating loss of $22.9 million (-2% operating margin) in the third quarter of fiscal year 2026, compared to operating income of $47.7 million (4.3% margin) during the same period last year, according to its Aug. 28 financial report.
Total operating revenue and other support rose to $1.2 billion in the three months ended June 30, up from $1.1 billion a year earlier. Net patient service revenue was $879.6 million, up from $838.2 million, driven by volume growth tied to strategic service lines and physician recruitment.
Total operating expenses were $1.2 billion in the third quarter of 2026, up from $1.1 billion during the same period last year. Salaries and employee benefits totaled $638.9 million, up from $600.1 million. Medical supplies and medication costs rose to $301.2 million, up from $260.2 million.
The system reported a net income of $36.7 million during the third quarter of 2026, down from $106 million during the same period last year.
Dartmouth-Hitchcock Medical Center — its flagship hospital — has implemented a financial resiliency plan aimed at increasing patient access and reducing costs to improve its ongoing operating margin. The system engaged an external consultant in the second half of fiscal year 2026 to accelerate the plan and identify additional margin opportunities systemwide.
For the nine months ended June 30, Dartmouth Health posted an operating loss of $86.4 million (-2.6% operating margin), compared to operating income of $44 million (1.4% margin) during the same period last year. The system attributed the year-to-date loss to a decline in patient revenue from weather-related closures in February that exceeded expectations, along with higher-than-anticipated labor and medication costs.
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