Northwestern Medicine’s operating margin dips to 3.6% in FY 2024

Chicago-based Northwestern Medicine posted an operating income of $339.7 million (3.6% margin) for the fiscal year ending Aug. 31, down slightly from a $366.1 million (4.2% margin) operating gain in the previous fiscal year. 

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Revenue increased 10.3% year over year to $9.56 billion while expenses grew by 11.1% to $9.22 billion, according to financial documents published Dec. 4. Salaries increased 12.4% to $4.04 billion and employee benefits rose 14.2% to $600.9 million.

After accounting for nonoperating items, such as investment returns, Northwestern reported a net income of $1.58 billion in FY 2024, up from $1.14 billion in FY 2023.

As of Aug. 31, long-term debt for the health system stood at $1.67 billion.

Northwestern is an 11-hospital system with more than 5,400 affiliated physicians. Its flagship facility, Northwestern Memorial Hospital, is among the largest in the country, with 894 beds.

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