New Orleans-based Ochsner Health recorded operating income of $32.5 million (0.8% operating margin) in the first half of 2026, up from an operating loss of $42.7 million (-1.1% margin) during the same period last year, according to its Aug. 13 financial report.
Five things to know:
1. Ochsner reported total operating revenue of $4.3 billion for the six months ended June 30, a 10.8% increase year over year. Patient service revenue totaled $3 billion, a 14.9% increase year over year. The system said the increase was primarily related to an increase in relative value units and patient days. Patient service revenue in January 2025 was negatively affected by Winter Storm Enzo, which caused the closure of most clinics and the cancellation of most procedures for three days. Inpatient revenue increased 17.2% year over year in the first six months of 2026 and outpatient revenue increased 12.4%.
2. Total operating expenses were $4.3 billion, an 8.7% increase year over year. Salaries, wages and benefits totaled $2 billion, a 5.2% increase. Medical supplies and services totaled $1.2 billion, a 16.9% increase year over year, primarily related to increased drug expenses stemming from increased volumes and price inflation for the retail and 340B pharmacies and infusion suites. A portion of the increase was also attributed to rising volume in operating departments and price inflation for implants and other medical supplies.
3. Ochsner had 120 days of cash on hand as of June 30, down from 123 on Dec. 31.
4. Robert Hart, MD, Ochsner Health’s chief physician executive and president of the Ochsner Clinic, will retire at the end of 2026 after 32 years of service. He will be succeeded by Brian Moore, MD. Dr. Moore currently serves as chief medical officer for Ochsner South Shore and Bayou regions and associate dean for clinical affairs at Xavier Ochsner College of Medicine.
5. The system reported a net income of $114.9 million in the first half of 2026, up from a net loss of $2.2 million during the same period last year.
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