Sayre, Pa.-based Guthrie Clinic reported a $35.9 million operating loss (-1.8% margin) for the fiscal year ended June 30, improving from a $45.3 million operating loss (-2.4% margin) in the prior fiscal year.
The health system reported $2 billion in operating revenue for fiscal 2026, up 5.9% year over year, according to its Aug. 24 financial report.
Six things to know:
1. Net patient service revenue increased 6.9% year over year to $1.94 billion, driven primarily by higher infusion and surgical volumes. Other operating revenue fell 20.3% to $59.1 million, primarily due to the prior-year recognition of insurance proceeds, FEMA reimbursement and New York healthcare worker bonus funding.
2. Operating expenses increased 5.2% to $2.04 billion. Salary and benefit expenses rose 5.6% to $1.15 billion, primarily due to increased full-time equivalents, including providers, recruitment and retention payments and enhanced rates for certain patient care areas.
3. Pharmaceutical expenses increased 15.5% to $263.1 million. Guthrie attributed the increase primarily to an unexpected loss of pharmaceutical discounts at one hospital and higher cancer treatment service volumes across the system. Purchased services decreased 1.6% to $177.9 million amid reduced laboratory, IT and external consulting needs.
4. Guthrie recorded $75.9 million in nonoperating gains for the fiscal year, including $30.7 million in unrealized investment gains, $24.3 million in interest and dividends and $22.8 million in realized investment gains. The system reported $41.7 million in revenues over expenses attributable to controlling interest, up from $33.2 million a year earlier.
5. Guthrie ended the fiscal year with $2.02 billion in total assets and $891 million in cash and unrestricted investments available for operations and capital expenditures. Days cash on hand increased to about 165 from about 163 a year earlier, while cash to debt improved to 157% from 143%.
6. Acute admissions decreased 3.9% year over year to 33,483, while acute patient days fell 3.8% to 141,335. Emergency department visits were relatively flat at 152,217. Outpatient charges increased 19.2% to $4.74 billion. Medicare represented 52.4% of gross charges in fiscal 2026, up from 51.9% a year earlier.
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