St. Louis-based Mercy recorded an operating income of $176.1 million (3.3% operating margin) in the first half of fiscal 2026, up from an operating loss of $19.1 million (-0.4% margin) during the same period last year, according to its Feb. 24 financial report.
Five things to know.
1. Total operating revenue was $5.4 billion for the six months ended Dec. 31, up from $5 billion during the same period last year. Patient service revenue was $4.9 billion, up from $4.5 billion. Capitation revenue was $259.7 million, down from $300.9 million. Other operating revenue was $226.2 million, up from $196.1 million.
2. Outpatient visits were up 19.8% year over year. Surgeries and emergency room visits increased 8.2% and 2.9%, respectively. Clinic visits grew 7.1%. Mercy said the increases were due to an intentional effort around patient access.
3. Total operating expenses were $5.2 billion in the first half of 2026, up from $5 billion last year. Salaries and benefits totaled $2.84 billion, up from $2.83 billion. Supplies and other expenses were $2 billion, up from $1.8 billion.
4. Salaries and benefits as a percentage of patient and capitation revenue was 54.8% in the first half of 2026, compared to 58.6% during the same period last year.
5. Mercy reported a net income of $434.8 million in the first half of 2026, up from $98.2 million during the same period last year.
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