New Hyde Park, N.Y.-based Northwell Health recorded an operating income of $26.9 million (0.5% operating margin) in the third quarter of 2025, down from an operating income of $77.5 million (1.7% margin) during the same period last year, according to its Dec. 1 financial report.
Northwell reported total operating revenue of $5 billion for the three months ended Sept. 30, up from $4.6 billion during the same period in 2024. The system reported total patient revenue of $4.4 billion, up from $4.1 billion.
The system said the increase in operating revenue was primarily attributable to increases in patient volume, payment rates, pharmacy sales and continued ambulatory and physician network growth. Revenue cycle initiatives also contributed to the increase.
Total operating expenses were $5 billion in the quarter, up from $4.5 billion. Salaries totaled $2.6 billion, up from $2.4 billion. Employee benefits were $537.4 million, up from $481.2 million. Supplies and expenses were $1.5 billion, up from $1.4 billion.
Northwell attributed the increase in operating expenses to the cost-of-living-wage adjustments, the effect of inflation on supply and expense price trends, increases in volume, and costs for new treatments and medical supplies.
The system reported a net income of $169.1 million in the third quarter, down from $333.2 million during the same period in 2024.
After its May merger with Danbury, Conn.-based Nuvance Health, Northwell is now a 28-hospital system with more than 105,000 employees. The combined system has about 1,100 ambulatory and physician practice locations.
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