Nashville, Tenn.-based Vanderbilt Health recorded an operating income of $249.7 million (5.4% operating margin) in the first half of fiscal 2026, up from an operating income of $130.1 million (3.1% margin) during the same period last year, according to its Feb. 27 earnings report.
Vanderbilt Health reported total operating revenue of $4.7 billion for the six months ended Dec. 31, up from $4.2 billion during the same period last year. The system’s 14% growth in patient service revenue was the key driver of the increase. Net patient service revenue was $4.1 billion, up from $3.6 billion. This increase was attributed to favorable realization/collections, CMI/acuity, payer mix and volumes.
Total operating expenses were $4.4 billion in the first half of 2026, up from $4 billion last year. Salaries, wages and benefits were $2.3 billion, up from $2.1 billion. Supplies and drug expenses were $1.1 billion, up from $989.5 million. Vanderbilt said the increase in drug costs was driven by growth in its retail and specialty pharmacy, as well as utilization of certain higher-cost drugs in the clinical setting. Supply expenses were driven by surgical volumes and higher-acuity surgeries, such as transplants.
Vanderbilt Health reported a net income of $361 million in the first half of 2026, up from $203.9 million in the first half of 2025.
