New York City-based Memorial Sloan Kettering Cancer Center reported an operating loss of $113.2 million for the first half of 2025, citing rising expenses and one-time costs related to its Epic EHR implementation.
The center said in an Aug. 15 news release that its operating cash flow margin was 1.4%. The organization attributed the shortfall to higher medical supply and pharmaceutical expenses, along with investments tied to the Feb. 1 Epic go-live.
Memorial Sloan Kettering described Epic as a “cornerstone” of its digital modernization strategy, expected to improve patient satisfaction, operational efficiency and revenue cycle performance. As with other hospitals adopting new EHR systems, the cancer center saw a temporary decline in patient activity in February and March following the launch.
Despite the costs, operating revenue grew 5.2% year-over-year, including a 3.9% increase in patient revenue. Patient activity rebounded in the second quarter, with growth across key service areas, according to the release.
Operating expenses climbed 9.7%, partly due to Epic-related costs. The institution said it continues to seek efficiency measures while focusing on access, discipline and its mission-driven programs.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
