Springfield, Ill.-based Hospital Sisters Health System recorded an operating income of $2.9 million (0.2% operating margin) in the first half of fiscal 2026, up from an operating loss of $6.1 million (-0.4% margin) during the same period last year, according to its Feb. 17 financial report.
Five things to know:
1. Total operating revenue was $1.5 billion for the six months ended Dec. 31, up from $1.4 billion during the same period last year. Net patient service revenue grew 6.7% year over year.
2. Total operating expenses were $1.5 billion, up from $1.4 billion. Salaries, wages and benefits were $542 million, up from $530.2 million. Supply expenses were $252.6 million, up from $236.9 million. Purchased service costs were $308 million, up from $247.5 million.
3. Salaries and benefits represented 35.3% of HSHS’ total revenue in the first half of 2026, compared to 37.8% during the same period last year. In February 2025, HSHS outsourced revenue cycle management to Ensemble Health Partners. As part of the agreement, about 700 HSHS employees joined Ensemble. This resulted in reduced salary and benefit costs but was offset by increased purchased service expenses.
4. To bolster financial performance, HSHS said it has implemented improvement plans involving revenue cycle, supply chain, labor and staffing, improved volume capacity, managed care negotiations and productivity.
5. HSHS recorded a net income of $90.7 million in the first half of 2026, up from $36.4 million last year.
