Albuquerque, N.M.-based Presbyterian Healthcare Services recorded an operating loss of $23.7 million (-1.3% operating margin) for the second quarter of 2026, down from operating income of $25.8 million (1.5% margin) during the same period last year, according to its Aug. 25 finance report.
Five things to know:
1. PHS reported total operating revenue of $1.9 billion for the three months ended June 30, a 6.1% increase year over year. Net premium revenue increased 10.4% to $1.3 billion. Net patient service revenue increased 14.5% to $564.7 million.
2. Total operating expenses were $1.9 billion, a 9% increase year over year. Medical claims expenses increased 11% to $871.9 million. Salaries, wages and employee benefits rose 7.2%, to $457.3 million. Purchased services and other expenses increased 14.5% to $286.3 million, tied to increased consulting costs and the system’s migration to a cloud computing platform.
3. Presbyterian Health Plan covered 316,915 members under the state’s Turquoise Care Medicaid managed care program as of June 30, down from 331,094 a year earlier under the prior Centennial Care contract. Despite the membership decline, PHP received rate increases from the New Mexico Health Care Authority that lifted Medicaid premium revenue by $79.2 million.
4. The system announced in June that it will end most of its Medicare Advantage plans in 2027 and lay off about 150 health plan and administrative employees. The changes will affect about 30,000 health plan members, who will need to find new coverage for 2027. Coverage for 2026 will remain unchanged.
5. PHS reported net income of $61.5 million in the second quarter of 2026, down from $108.3 million a year earlier, aided by investment income of $78.3 million, up from $52.8 million.
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