San Diego-based Sharp HealthCare recorded operating income of $36.2 million (2.3% operating margin) in the third quarter of 2026, up from an operating loss of $21.5 million (-1.5% margin) during the same period last year, according to its Aug. 6 financial report.
The health system recorded total operating revenue of $1.6 billion for the three months ended June 30, up from $1.4 billion during the same period last year. Net patient service revenue totaled $942.3 million, up from $871.2 million. Premium revenue totaled $558.8 million, up from $508.4 million.
Total operating expenses were $1.53 billion in the third quarter, up from $1.45 billion during the same period last year. Salaries, wages and benefits totaled $649.6 million, up from $631.8 million. Medical fee expenses totaled $283.6 million, up from $242.8 million. Supply costs totaled $206.2 million, up from $187.1 million.
The system noted that financial performance continues to be affected by a shift in payer mix, “notably a rise in Medicare Advantage membership.”
“This increase, influenced by demographic trends and competitive market dynamics, results in lower average reimbursement, adding pressure to operating margins,” Sharp said in the report. “Management is evaluating strategies to address this shift while maintaining service quality.”
Sharp recorded a net income of $426.7 million in the third quarter, up from $261.7 million during the same period last year.
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