West Orange, N.J.-based RWJBarnabas Health recorded an operating income of $385.8 million (6.4% operating margin) in the first half of 2026, up from an operating income of $334.3 million (6.3% margin) during the same period last year, according to its financial report for the six months ended June 30.
Total operating revenue was $6.1 billion through the second quarter of 2026, up from $5.3 billion during the same period in 2025. Total patient service revenue was $5.7 billion, up from $4.9 billion. Inpatient service revenue was $2.9 billion, up from $2.4 billion, driven largely by growth in the Medicaid County Option Program — a state initiative that lets participating New Jersey counties collect a fee on hospitals to draw down added federal Medicaid match, which is then passed back to hospitals as higher reimbursement — as well as strong transplant volumes. Outpatient service revenue was $1.9 billion, up from $1.7 billion. Professional billing revenue was $791.2 million, up from $681.1 million.
Total operating expenses were $5.7 billion in the first half of 2026, up from $5 billion the prior year. Salaries and employee benefits totaled $2.6 billion, up from $2.3 billion, driven by higher labor costs tied to additional full-time employees and annual merit increases. Supplies and other expenses were $2.1 billion, up from $1.8 billion, driven in part by the opening of the Jack and Sheryl Morris Cancer Center in 2025 and higher drug costs.
RWJBarnabas reported a net income of $754.4 million in the first half of 2026, up from $607.5 million during the same period last year.
