Hershey, Pa.-based Penn State Health recorded an operating income of $60.4 million (1.8% operating margin) through the first three quarters of fiscal 2025, up from $48 million (1.5% margin) during the same period last year, according to its May 29 financial report.
Five things to know:
1. The system reported a total operating revenue of $3.3 billion for the nine months ended March 31, up from $3.1 billion over the same period last year. Net patient service revenue totaled $3.1 billion, up from $2.8 billion.
2. Operating expenses totaled $3.3 billion through the third quarter, up from $3.1 billion during the same period last year. Salaries and benefit expenses were $1.9 billion, up from $1.8 billion. Medical supply and drug costs totaled $656.8 million, up from $606.4 million. Purchased services decreased to $367.6 million from $376 million.
3. Penn State Health had 112 days cash on hand as of March 31, up from 109 on Dec. 31.
4. The system recorded a net income of $107.7 million through the first three quarters of 2025, down from $110.9 million during the same period last year.
5. On May 28, Penn State Health named Michael Kupferman, MD, its next CEO, effective June 23. He will succeed Deborah Addo, who has served as interim CEO since last fall after Steve Massini retired Oct. 1 from the role.Dr. Kupferman most recently served as president of the Banner University Medicine Division and senior vice president of the physician enterprise for Phoenix-based Banner Health.
