New York City-based NewYork-Presbyterian reported operating income of $124.2 million (4% operating margin) during the second quarter of 2026, up from $101.7 million (3.6% margin) during the same period last year, according to its Aug. 24 disclosure report.
Four things to know:
1. The system recorded total operating revenue of $3.1 billion during the three months ended June 30, an 8.5% increase year over year. Net patient service revenue rose 8.5% to $2.9 billion, driven by higher clinic visits, ambulatory surgery volume, mental health visits and emergency visits, along with agreed-upon increases under third-party payor agreements. Other revenue rose 9.5% to $228.9 million on higher specialty pharmacy revenue, partly offset by a $30 million year-over-year decline in FEMA grant revenue; no FEMA revenue was recognized in the quarter.
2. Total operating expenses were $3 billion during the second quarter, an 8.1% increase year over year. Salaries, wages and employee benefits rose $113.3 million, or 6.9%. Factors driving that growth included market-based wage increases; workforce growth tied to the September 2025 opening of NYP The One, an outpatient center in White Plains, N.Y.; and higher employee health benefit claims. Supplies and other expenses climbed 10.8% to $1 billion, driven by higher medical and pharmaceutical purchases and costs tied to the ramp-up of NYP The One.
3. The Justice Department filed a lawsuit against NewYork-Presbyterian on March 26 alleging that the system stifled competition through restrictive payer contracts. The complaint seeks injunctive relief rather than monetary damages, but two follow-on class actions seeking monetary relief were also filed, according to the report. The system said the litigation is in the early stages and its legal counsel is evaluating the allegations and “cannot yet provide an opinion on the potential outcomes, or whether such outcomes will have a direct material financial impact” on the system.
4. NewYork-Presbyterian reported a net income of $1.1 billion in the second quarter of 2026, up from $611.6 million during the same period last year.
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