Philadelphia-based University of Pennsylvania Health System recorded an operating income of $189.4 million (2.8% operating margin) in the first half of fiscal 2026, up from an operating income of $117 million (2% margin) during the same period last year, according to its Feb. 20 financial report.
The system reported total operating revenue of $6.8 billion for the six months ended Dec. 31, up from $5.8 billion during the same period last year. Net patient service revenue was $5.7 billion, up from $5 billion during the same period last year. Other operating revenue was $1.1 billion, up from $847.9 million.
Total operating expenses were $6.3 billion in the first two quarters of 2026, up from $5.4 billion during the same period last year. Salaries, wages and employee benefits totaled $3.3 billion, up from $3 billion last year. Supplies and service expenses totaled $2.7 billion, up from $2.3 billion. Malpractice expenses were $125 million, up from $69.1 million last year.
Penn Medicine’s results for fiscal 2026 include Doylestown (Pa.) Health. The system acquired the 245-bed teaching hospital on April 1, 2025.
The seven-hospital system reported a net income of $554.4 million in the first half of 2026, up from $298.9 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.
