Burlington, Mass.-based Tufts Medicine’s operating margin fell to -3.4% through the first nine months of fiscal 2026, compared with -2.3% during the same period a year earlier, as the health system’s CEO and CFO prepare to step down.
Tufts reported an operating loss of $79.5 million on $2.4 billion in revenue for the nine months ended June 30, according to financial documents filed Aug. 28. That compares with an operating loss of $50 million on $2.2 billion in revenue during the same period in fiscal 2025.
Revenue increased 7.1% year over year, while expenses climbed 8.2% to $2.4 billion from $2.3 billion. Patient service revenue rose 3.2% to $1.8 billion, while other revenue increased 27.8% to $498 million.
Several expense categories increased during the period. Salaries and wages rose 4.4% to $1.1 billion, employee benefits increased 8.5% to $231.9 million and purchased services climbed 8.7% to $353 million. Supplies and other expenses increased 16.4% to $705.2 million.
After $16.7 million in nonoperating revenue, Tufts recorded a $62.8 million net loss through June 30, compared with a $47 million net loss a year earlier.
For the third quarter alone, Tufts posted a $33.1 million operating loss on $806.2 million in revenue, compared with a $5.9 million operating loss on $753.2 million in revenue during the same quarter in 2025. The quarterly operating margin declined to about -4.1% from -0.8%.
The results come as President and CEO Mike Dandorph and CFO Andrew DeVoe prepare to leave the system Sept. 30.
The Tufts Medicine Board appointed COO Phil Okala acting president and CEO, according to an Aug. 4 internal memo from board Chair Phil Lembo that was shared with Becker’s. Greg Kruse, vice president of strategic operations and analytics intelligence, will assume responsibility for budget planning and oversee some financial services operations as the system prepares to search for Mr. DeVoe’s successor.
Mr. Lembo said the health system has made progress strengthening its financial foundation in recent years and is entering the “next phase” of its turnaround.
“While important work remains ahead, we have generated significant momentum and are entering the next phase of our financial turnaround with greater focus, discipline and purpose,” he said.
Tufts had $62.1 million in cash and cash equivalents as of June 30, down from $72.3 million a year earlier. Investments rose to $486.5 million from $272.7 million. Total assets increased to $2.3 billion from $2. billion, while total liabilities rose to $2.2 billion from $1.8 billion.
Operational volumes were mixed. Inpatient discharges increased slightly to 35,535 from 35,243, while total patient days declined to 187,381 from 193,245. Average daily census fell to 742 from 775 and occupancy of available beds declined to 74% from 77%. Total surgical cases increased to 23,957 from 23,824, while emergency department visits fell 3.7% to 128,398.
Mr. Dandorph joined Tufts Medicine as president and CEO in January 2020. Mr. DeVoe has served as CFO since February 2024. Both executives are expected to remain in their roles through Sept. 30.
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