New York City-based NewYork-Presbyterian recorded an operating income of $115 million (3.9% operating margin) in the third quarter of 2025, down from an operating income of $123 million (4.5% margin) during the same period last year, according to its Nov. 26 financial report.
Five things to know:
1. The system said the decrease in operating income was driven by the increase in total expenses exceeding the growth in total revenue, with employee wages and benefits and supplies and other expenses being the primary components of the increase.
2. NewYork-Presbyterian reported total operating revenue of $2.9 billion for the three months ended Sept. 30, up from $2.7 billion during the same period last year. Net patient service revenue increased 4% year over year. The increase was primarily driven by increases in inpatient volume, emergency room visits, ambulatory surgery procedures, clinic visits and higher payment rates. The increases were partially offset by a decrease in mental health clinic visits and lower acuity compared to the third quarter of 2024.
3. Total operating expenses were $2.8 billion in the quarter, up from $2.6 billion last year. The increase was driven by a 4.5% growth in salaries, wages and benefits. The system had 77 more full-time equivalent employees compared to the same quarter last year. General wage and benefit increases were consistent with the labor market. These increases were partially offset by a 30% decrease in temporary and agency costs.
4. Supplies and other expenses increased 11.6% year over year. The growth was attributed primarily to an increase in costs associated with providing services to treat more patients, purchasing new medical and pharmaceutical supplies introduced in the market to support quality and safe patient care, and an inventory adjustment related to expired COVID-19 stockpile inventory.
5. The system recorded a net income of $530.2 million in the third quarter, up from $493.9 million during the same period last year.
