Cleveland-based University Hospitals reported an adjusted operating loss of $84 million (-2.5% margin) for the six months ended June 30, 2025, a 7.1% improvement from the same period in 2024, driven by higher patient service revenue and lower reliance on contract labor, according to financial documents published Aug. 27.
Seven things to know:
1. Total adjusted operating revenue rose 8.2% year over year to $3.4 billion, while adjusted operating expenses increased 7.8% to $3.5 billion.
2. Net patient service revenue reached $3.1 billion, including notable contributions from the specialty pharmacy and infusion lines ($42 million, up 16.9%) and the academic medical center ($18 million, up 1.4%) and the combined performance of the Eastern and Western Region Community Medical Centers ($46 million, up 12.4%).
3. Adjusted EBITDA increased 15.5% year over year to $56 million, reflecting stronger operating performance despite ongoing cost pressures.
4. Days of cash on hand fell to 132 days as of June 30, 2025, down from 145 at year-end 2024, due to a $217 million drop in cash and equivalents partially offset by investment gains.
5. Long-term debt was $1.6 billion as of June 30, 2025.
6. Adjusted discharges increased 6.3% systemwide, with community medical centers leading at 9.1% growth, according to the report. Inpatient surgeries rose 2.8% overall, driven by neurology and orthopedics at the academic medical center.
7. Medicaid state-directed payments timing skewed results: $62 million in Medicaid SDP revenue was not recognized in the first half of 2025 due to delayed legislation, according to the health system. Without this delay, the operating loss would have been $22 million, a 75.7% improvement from the prior year.
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