Philadelphia-based University of Pennsylvania Health System recorded operating income of $336.9 million (2.5% operating margin) for fiscal year 2026, up from operating income of $246.7 million (2.1% margin) during the same period last year, according to its Aug. 28 financial report.
Six things to know:
1. Penn Medicine reported total operating revenue of $13.6 billion for the 12 months ended June 30, up from $12 billion during the same period last year, according to its unaudited finance report. Patient service revenue was $11.4 billion, up from $10.2 billion.
2. The system’s revenue growth is increasingly driven by outpatient services, a spokesperson told the Daily Pennsylvanian Sept. 1. Outpatient services accounted for more than 60% of total operating revenue in the fiscal year. Penn Medicine reported 5.9 million outpatient visits in fiscal 2026, up from 5.4 million in fiscal 2025.
3. Total operating expenses were $12.8 billion in fiscal 2026, up from $11.2 billion during the same period last year. Salaries, wages and employee benefits totaled $6.9 billion, up from $6.2 billion. Supplies and service expenses were $5.6 billion, up from $4.8 billion. Malpractice expenses were $217 million, up from $141 million.
4. Penn Medicine’s fiscal 2026 results reflect a full 12 months of Doylestown (Pa.) Health, which the system acquired April 1, 2025. The 245-bed teaching hospital was included for only a partial period in the prior fiscal year.
5. Penn Medicine on June 9 extended the appointment of CEO Kevin Mahoney through June 2031. He has led the health system since July 2019. He joined the system in 1996 and previously served as executive vice president and chief administrative officer.
6. The system reported net income of $1.6 billion in fiscal 2026, up from $923.1 million the year prior, aided by unrealized and realized investment gains.
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