Most Philly-area health systems had improved financial results in first half of fiscal 2026
Children's Hospital of Philadelphia had the highest operating profit margin in the region in the six months that ended Dec. 31.
Six of eight nonprofit health systems in Southeastern Pennsylvania and northern Delaware posted improved financial results for the six months that ended Dec. 31 compared to the year before. Still, half of them had operating losses, according to financial data reported last month to bond investors.
Jefferson Health and Temple University Health System reported results that were worse than the same period last year.
Children’s Hospital of Philadelphia remained the region’s most profitable health system, with a 6.2% operating margin, up from 5.2% the year before. CHOP posted $2.7 billion in total revenue in the last six month of 2025, up 9% from $2.4 billion the year before.
Nonprofit health systems in South Jersey, such as Cooper, Inspira, and Virtua, do not report comparable financial results until they file their annual audited financials statements in the spring.
Here’s a summary:
Jefferson Health: Jefferson had an operating loss of $201 million in the six months that ended Dec. 31, compared to a $55 million loss the year before. The $201 million loss included a $64.7 million restructuring charge related to severance for 600 to 700 people laid off in October and other changes designed to improve efficiency in the 32-hospital system that stretches from South Jersey to Scranton, Jefferson said.
University of Pennsylvania Health System: Penn had an operating profit of $189 million in the first six months of fiscal 2026, up from $117 million in the same period a year ago. Operating income increased, even after Penn put $43 million put into reserves for medical malpractice claims. Two years ago, Penn had recorded charges totaling $90 million for the same purpose.
ChristianaCare: ChristianaCare, Delaware’s largest health system, posted a $37 million operating gain, up from $33 million in the first six months of fiscal 2025. The health system’s revenue rose 9% to $1.75 billion, helped in part by its expansion into Pennsylvania. ChristianaCare took over five of Crozer Health’s freestanding outpatient locations in Delaware County.
Temple University Health System: Temple had a $50.5 million operating loss in the six months that ended Dec. 31. In the same period the year before, Temple reported a $13.5 million operating gain. The nonprofit attributed some of the losses to costs related to the opening of Temple Women & Families Hospital in September.
Main Line Health: Main Line had an $8.7 million operating profit in the six months that ended Dec. 31. Main Line’s swing from an $8.9 million loss in the same period of 2024 benefited from a change in accounting for depreciation that reduced expenses. Without that change, Main Line would have had another loss.
Tower Health: Tower had an operating loss of $16 million in the first six month of fiscal 2026, according to its report to bondholders Friday. In the same period a year ago, the Berks County nonprofit’s loss was $16.1 million.
Redeemer Health: Redeemer reported an operating loss of $14.7 million, compared to a loss of $19.5 million the year before. The improvement happened even though the health system in Philadelphia’s northern suburbs increased revenue by just 1.2%, to $227 million.