New York City-based Montefiore Health System recorded an operating loss of $104.9 million (-4.5% operating margin) during the first quarter of 2026, compared to an operating loss of $20.8 million (-1% margin) during the same period last year, according to its May 28 financial report.
Although the system recorded $109.3 million in COVID-19 relief funds from the Federal Emergency Management Agency, Montefiore was challenged by the longest nursing strike in New York City’s history, as well as two extreme winter storms.
“Despite these circumstances, our doors remained open and we continued delivering the high-quality care our patients and communities depend on us for,” said Colleen Blye, Montefiore’s executive vice president, CFO and chief business officer.
Montefiore recorded total operating revenue of $2.3 billion during the three months ended March 31, up from $2.1 billion during the same period last year. Net patient service revenue was $2.1 billion, up from $2 billion. Grants and contracts totaled $142.7 million, up from $36 million.
Total operating expenses were $2.4 billion in Q1 2026, up from $2.2 billion during the same quarter last year. Salaries, wages and employee benefits totaled $1.38 billion, up from $1.35 billion. Supplies and other expenses totaled $934 million, up from $718.3 million.
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 disrupted patient care operations and contributed to reduced volumes in certain inpatient and outpatient service lines.
Ms. Blye said the system is continuing to look for opportunities to grow its payer mix and diversify its revenue stream as it faces growing financial headwinds fueled by rising supply, labor and pharmaceutical costs.
“Academic medical centers like Montefiore are anchors for the neighborhoods we serve and vital drivers of New York’s economy,” she said. “We will continue to work with advocates and elected leaders to ensure that policies deliver sustained and needed funding for institutions like ours that provide a critical benefit to the public.”
Montefiore reported a net loss of $113.5 million in Q1 2026, compared to a net loss of $14.8 million during the same period last year.
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