Orlando (Fla.) Health recorded an operating income of $47.4 million (1.9% operating margin) in the second quarter of 2026, down from $94.7 million (3.9% margin) during the same period last year, according to its May 26 financial report.
Five things to know:
1. Orlando Health said the decline in operating income resulted from a lag in approval of the Florida Low Income Pool program. The program did not receive final CMS and Florida Legislative Budget Commission approval until April, “resulting in a delay of recognition of the related revenue and expense.” The system received $57.7 million in net program proceeds in the second quarter of 2025.
2. The system reported total operating revenue of $2.5 billion for the three months ended March 31, up from $2.4 billion during the same period last year. Net patient service revenue was $2.3 billion, up from $2.1 billion. Other revenue was $222.2 million, down from $302.7 million.
3. Total operating expenses were $2.5 billion, up from $2.3 billion. Salaries and benefits totaled $1.3 billion, up from $1.2 billion. Supply expenses totaled $617 million, up from $518.9 million. Other expenses totaled $403.2 million, down from $470.6 million.
4. Orlando Health said it has seen “early indications of payer mix shifts due to affordability, eligibility redetermination, plan costs, and ACA Marketplace enrollment trends.” The system said it expects those trends to continue throughout 2026.
5. The system reported net income of $118.3 million in Q2 2026, down from $132.9 million during the same period last year.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
