Philadelphia-based University of Pennsylvania Health System reported an operating income of $238.5 million (2.4% operating margin) through the third quarter of fiscal 2026, up from an operating income of $163 million (1.9% margin) through the same period last year.
Five things to know:
1. Penn Medicine reported total operating revenue of $10.1 billion for the nine months ended March 31, up from $8.8 billion during the same period last year, according to its May 20 finance report. Patient service revenue was $8.5 billion, up from $7.5 billion.
2. Total operating expenses were $9.5 billion through Q3 2026, up from $8.2 billion during the same period last year. Salaries, wages and employee benefits totaled $5.1 billion, up from $4.6 billion. Supplies and service expenses were $4.1 billion, up from $3.5 billion. Malpractice expenses were $172.4 million, up from $103.7 million.
3. Penn Medicine’s results for fiscal 2026 include Doylestown (Pa.) Health, which the system acquired April 1, 2025. The 245-bed teaching hospital was not included in the prior-year comparison period.
4. 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.
5. The system reported net income of $748.2 million through Q3 2026, up from $431.2 million through the same period last year.
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