Vancouver, Wash.-based PeaceHealth reported a $92.3 million operating loss (-2.2% margin) for the fiscal year ended June 30, narrowing from a $153.3 million loss (-3.9% margin) in fiscal 2025, according to audited financial statements issued Sept. 25.
Seven things to know:
1. Revenue increased 6.6% year over year to $4.2 billion. Patient service revenue climbed to $4.02 billion, up 6.2% from $3.78 billion in fiscal 2025. Other operating revenue increased to $216.7 million from $189.7 million.
2. Operating expenses rose 3.8% to $4.3 billion. Salaries and wages increased to $2.1 billion from $2 billion, supplies rose to $711 million from $665.1 million and purchased services increased to $547.8 million from $534.4 million.
3. PeaceHealth’s operating performance improved substantially before nonrecurring costs. The system reported a $16.9 million loss from operations before nonrecurring expenses, compared with a $122.5 million loss the year before. Nonrecurring expenses, however, increased to $75.4 million from $30.8 million.
4. The nonrecurring costs were primarily tied to restructuring. PeaceHealth recorded $22.6 million in reduction-in-force costs, $36.9 million in consulting expenses and $16 million in other expenses connected with its “carryforward plan,” which the system said is intended to align resources with its mission.
5. Investment gains lifted PeaceHealth to a $153.2 million excess of revenues over expenses, up from $16 million in fiscal 2025. Net investment returns increased to $256.7 million from $187.2 million, helping generate $245.6 million in total nonoperating income.
6. Liquidity increased, though operating cash flow turned negative. PeaceHealth reported $2.7 billion in financial assets available to meet general expenditures within one year, up from $2.4 billion. Cash and cash equivalents fell to $242.1 million from $316.5 million, and operating activities used $43.8 million in cash compared with generating $200.1 million a year earlier.
7. Total debt remained relatively stable at about $1.8 billion. PeaceHealth issued $784.2 million of long-term debt during the year and made $786.7 million in principal payments. The system also spent $171.4 million on property, plant and equipment, up from $143.5 million in fiscal 2025.
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