Orlando (Fla.) Health recorded operating income of $81.5 million (3.0% operating margin) in the third quarter of fiscal 2026, up from $56.3 million (2.2% margin) during the same period last year, according to its Aug. 25 finance report.
Five things to know
1. The system attributed the operating income increase largely to state supplemental payment programs. Orlando Health recognized $237.1 million in combined net revenue from the Florida Low Income Pool (LIP) program and the Medicaid Hospital Directed Payment Program (Hospital DPP) in the quarter, up from $37.8 million a year earlier. LIP revenue alone totaled $145.1 million, versus $37.8 million in the prior-year period, while Hospital DPP contributed $92 million, up from zero.
2. The system reported total revenue and other support of $2.8 billion for the three months ended June 30, up 8.6% from $2.5 billion a year earlier. Net patient service revenue was $2.3 billion, up 5.8% from $2.1 billion, which Orlando Health attributed to contractual rate growth and favorable volume and case mix. Other revenue rose to $480.1 million from $385.9 million.
3. Total expenses were $2.7 billion, up 7.8% from $2.5 billion. Salaries and benefits totaled $1.4 billion, up from $1.2 billion. Supply expenses came in at $630.1 million, up from $544.6 million. Other expenses declined to $533.8 million from $583.2 million.
4. Orlando Health had about $1.3 billion in estimated costs remaining on active construction projects as of June 30, including $363 million for new bed towers, $70 million for freestanding emergency departments and $44 million for medical pavilions and institutes. Two new hospitals — Lakeland, Fla.-based Orlando Health Watson Clinic Lakeland Highlands Hospital and Wesley Chapel-based Florida Medical Clinic Orlando Health Wiregrass Ranch Hospital — opened in July.
5. The system reported net income of $405.6 million in the third quarter of 2026, up from $300.5 million during the same period last year.
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