New York City-based Montefiore Health System recorded an operating loss of $103.7 million (-1.6% operating margin) through the third quarter of 2025, down from an operating income of $147.4 million (2.3% margin) during the same period last year.
“Loss of FEMA reimbursements and continued expense growth, including heightened personnel costs across our labor contracts, were primary drivers of the losses,” said Colleen Blye, Montefiore’s executive vice president, CFO and chief business officer.
The health system reported total operating revenue of $6.5 billion in the nine months ended Sept. 30, up from $6.4 billion during the same period in 2024. Net patient service revenue was $6 billion, up from $5.8 billion. Grants and contracts totaled $102.6 million, down from $334.4 million.
Operating expenses were $6.6 billion through the third quarter, up from $6.3 billion during the same period last year. Salaries and wages were $3.1 billion, up from $2.9 billion. Employee benefits totaled $928.5 million, up from $864.6 million. Supplies and other expenses were $2.3 billion, up from $2.2 billion.
“As the healthcare industry navigates this critical time in which federal funding has been slashed and states are limited in their ability to fill the gaps, we will keep focused on diversifying our payer mix, controlling expenses and working with our government and community leaders to identify new opportunities for sustainable funding,” Ms. Blye said in her statement shared with Becker’s.
