St. Louis-based Mercy recorded an operating income of $500.8 million (4.5% margin) for fiscal year 2026, up from $21.4 million (0.2% margin) in fiscal 2025, according to its Sept. 11 financial report.
Four things to know:
1. Mercy reported total operating revenue of $11.1 billion for the 12 months ended June 30, a 9.4% increase year over year. Patient service revenue rose 8.4% year over year to $9.9 billion. Other operating revenues increased 70.6% to $671.7 million, while capitation revenues declined 15.2% to $522.1 million.
2. Total operating expenses were $10.6 billion for fiscal 2026, a 4.7% increase year over year. Salaries and benefits totaled $5.7 billion, a 1.1% increase year over year. Supplies and other expenses totaled $4.2 billion, a 12.8% increase, while medical claims expenses declined 25.1% to $248.5 million.
3. Medicare made up the largest share of patient service revenue growth, rising to $4.4 billion in fiscal 2026 from $3.8 billion a year earlier, a 16.2% increase. Medicaid revenue grew 13.3% to $1.1 billion. Managed care and other commercial revenue was roughly flat at $4.3 billion, while self-pay revenue declined 20.6% to $107.4 million. Government payers — Medicare and Medicaid combined — accounted for about 44% of net accounts receivable at year-end, up slightly from 43% the prior year, with one managed care payer representing 18% of net accounts receivable in both years.
4. Mercy reported a net income of $1.1 billion in fiscal 2026, up from $302.5 million during the same period last year.
