Philadelphia-based Penn Medicine reported an operating income of $238.5 million (2.4% margin) for the nine months ended March 31, up 46.3% from $163 million (1.9% margin) in the same period last year, according to financial documents filed May 20.
The results follow the April 1, 2025, acquisition of Doylestown (Pa.) Health. Doylestown Hospital, a 245-bed teaching hospital, became Penn Medicine’s seventh hospital and is now known as Penn Medicine Doylestown Health.
Six things to know:
1. Operating revenue climbed 15.2% year over year. Penn Medicine reported total operating revenue of $10.1 billion for the nine-month period, up from $8.8 billion during the same period in 2025. Net patient service revenue increased 13.5% year over year to $8.5 billion.
2. Expenses rose 14.9% year over year. Total operating expenses before interest, taxes, depreciation and amortization increased 14.9% year over year to $9.5 billion. Salaries and wages rose to $4 billion, while supplies and service costs increased to $4.1 billion. Interest expenses ($68.5 million) and depreciation and amortization ($335.3 million) costs dragged down the health system’s overall performance for the nine-month period.
3. EBITDA topped $642 million. Penn Medicine posted earnings before interest, taxes, depreciation and amortization of $642 million for the nine-month period, up from $540 million during the same period in 2025.
4. Net income rose sharply. Penn Medicine reported $748.2 million in net income, up from $431.2 million a year earlier. The increase was aided by $242.1 million in unrealized gains on alternative and equity investments and $183.1 million in net realized gains, contributions and other support.
5. The health system’s balance sheet expanded significantly. Total assets reached $17.2 billion as of March 31, 2026, compared with $15.4 billion a year earlier. Net assets grew to $10.7 billion from $9.7 billion. Long-term debt also increased, rising to $2.6 billion from $2.3 billion, reflecting capital investment activity during the period.
6. Volumes grew across several categories. Volume metrics reflect the Doylestown addition and underlying demand growth. Adult and neonatal admissions rose to 120,297 from 105,711 in the prior-year period. Emergency room visits increased to 370,992 from 332,307, and outpatient visits grew to 4.364 million from 3.938 million. Staffed adult and neonatal beds increased to 3,369 from 3,102, reflecting the addition of Doylestown Hospital’s 245-bed capacity. Occupancy held at 78%, up slightly from 77.5%.
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