New York City-based Montefiore Health System recorded an operating loss of $69.1 million (-1.5% operating margin) through the first half of 2026, down from an operating loss of $17.9 million (-0.4% margin) during the same period last year, according to its Aug. 27 finance report.
The system recorded operating revenue of $4.7 billion during the six months ended June 30, up from $4.4 billion during the same period last year. Net patient service revenue was $4.3 billion, up from $4 billion. Grants and contracts totaled $185.8 million, up from $71.8 million. Other revenue was $182 million, down from $255.8 million.
Total operating expenses were $4.8 billion in the first half of 2026, up from $4.4 billion during the same period last year. Salaries, wages and benefits totaled $2.8 billion, up from $2.7 billion during the same period last year. Supplies and other expenses totaled $1.8 billion, up from $1.5 billion.
On Jan. 12, nearly 15,000 New York City nurses went on strike at Montefiore, as well as Mount Sinai Health System and NewYork-Presbyterian. The strike extended into February. Montefiore said that as a result, the system incurred increased operating expenses associated with the utilization of temporary and contract labor. These costs included onboarding and training temporary personnel, as well as certain operational support measures implemented to maintain continuity of patient care, including temporary housing and other staffing support arrangements.
Montefiore said the strike also disrupted patient care operations and contributed to reduced volumes in certain inpatient and outpatient service lines.
Increased expense pressures from supply and labor costs contributed to financial strains at the system, Colleen Blye, Montefiore’s executive vice president, CFO and chief business officer, said in a statement shared with Becker’s.
“Reimbursements from FEMA and other government funding remain crucial and reflect the importance of federal and state government partnerships,” Ms. Blye said. “Looking ahead, Montefiore continues to be proactive and strategic about managing spending, investing in technology to improve outcomes, diversifying its payer mix, and staying focused on its mission to advance the health of the communities it serves.”
Montefiore posted a net loss of $75.3 million in the first half of 2026, down from a net loss of $2.5 million during the same period last year.
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