Lebanon, N.H.-based Dartmouth Health recorded an operating loss of $52.5 million (-4.8% operating margin) in the second quarter of 2026, compared to an operating loss of $19.7 million (-1.9% margin) during the same period last year.
Total operating revenue was $1.1 billion for the three months ended March 31, up from $1 billion during the same period last year. Net patient service revenue was $833.8 million, up from $780 million.
Total operating expenses were $1.1 billion in Q2 2026, up from $1 billion during the same period last year. Salaries and employee benefits totaled $623.7 million, up from $566.7 million. Medical supplies and medications totaled $291 million, up from $258.2 million, which the system attributed to expanded pharmacy services and higher inpatient acuity.
Dartmouth Health recorded an operating loss of $63.5 million (-2.9% margin) through the first half of 2026. The system said the loss was driven by a decrease in patient revenue stemming from weather-related closures in February, as well as higher-than-anticipated labor and medication costs.
The system said that beginning in July 2025, Dartmouth Hitchcock Medical Center — its flagship hospital — implemented a financial resiliency plan to increase patient access and reduce costs, with the aim of improving its margin for the fiscal year ending Sept. 30, 2026. These initiatives will take effect in the second half of 2026 and the system has engaged with an outside consultant to accelerate the implementation of these plans.
Dartmouth Health reported a net loss of $62 million in the second quarter of 2026, compared to a net loss of $13.5 million during the same period last year. In the first half of 2026, the system recorded a net loss of $50.8 million, compared to a net loss of $17.7 million in H1 2025.
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