New York City-based Montefiore Health System recorded an operating loss of $120.9 (-1.4% operating margin) in 2025, down from an operating income of $164.7 million (1.9% margin) in 2024, according to its March 13 financial report.
Montefiore faced headwinds in 2025 from the absence of Federal Emergency Management Agency reimbursements, the ongoing shift to outpatient care and rising labor and operating costs, executive vice president, CFO and chief business officer Colleen Blye said in a statement. The system received $1.2 million in FEMA disaster relief funds in 2025, compared to $254.9 million in 2024.
In 2024, Montefiore’s operating performance was primarily driven by noncontinuous or one time FEMA and 1115 waiver funding. Without those federal and state funds, the system’s operating margin would have been -2.4% in 2024.
For the 12 months ended Dec. 31, 2025, Montefiore reported total operating revenue of $8.8 billion, up from $8.6 billion in 2024. Net patient service revenue was $8.2 billion, up from $7.8 billion. Grants and contracts totaled $134.6 million, down from $381.2 million.
Total operating expenses were $8.9 billion in 2025, up from $8.4 billion in 2024. Salaries, wages and employee benefits totaled $5.5 billion, up from $5.1 billion. Supplies and other expenses were $3 billion, up from $2.95 billion.
Montefiore reported a net loss of $56.3 million in 2025, down from a net income of $228 million in 2024.
“Looking ahead at 2026, we remain focused on sustaining the high-quality care provided to our community, while navigating the decreased federal funding landscape,” Ms. Blye said. “That said, we are grateful for the federal government’s recent obligations of long-standing FEMA reimbursements from the peak of the COVID pandemic to hospitals across New York.”
Montefiore is also working with state leaders to ensure that the intended revenue from New York’s Managed Care Organization tax for hospitals remains directed toward them.
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