Roundup of third-quarter financial results for Philly-area nonprofit health systems
Children’s Hospital of Philadelphia was the most profitable nonprofit health system in Southeastern Pennsylvania during the nine months that ended March 31.
Half of the nonprofit health systems in Southeastern Pennsylvania had operating losses in the first nine months of fiscal 2026, the systems’ latest reports to municipal bond investors showed.
All had strong revenue growth, with the exceptions of Redeemer Health and Tower Health, the two smallest systems by revenue. The gains at Jefferson Health and Penn Medicine benefited from acquisitions in fiscal 2025.
The reports are not perfectly comparable because of variations in accounting practices.
For example, Jefferson, Main Line Health, and ChristianaCare changed their depreciation rates, which reduced their expenses relative to competitors. Jefferson includes investment income in its revenue, boosting its results.
Here’s a summary in order of revenue, from the region’s largest to smallest systems:
Jefferson Health had a $252.6 million operating loss, which it attributed to severe winter weather, restructuring costs related to layoffs, and shortfalls in insurance reimbursement. Total revenue was just shy of $13 billion, up from $11.6 billion last year, which included only eight months of results from Lehigh Valley Health Network.
The University of Pennsylvania Health System’s operating income in the nine months ended March 31 rose to $238 million, up sharply from $163 million in the same period a year ago. Total revenue for the nine months increased nearly 15% to $10.1 billion from $8.8 billion last year. This year’s results include Doylestown Health, which Penn acquired in April 2025.
Children’s Hospital of Philadelphia had a $271 million operating profit in the first nine months of fiscal 2026, up from $195.8 million the year before. Total revenue rose 9% to $4.1 billion from $3.7 billion, thanks to strong gains in payments for hospital patients and unspecified other operating revenue.
ChristianaCare reported $76.4 million in operating income, up from $57.4 million the year before. Its revenue climbed to $2.64 billion from $2.5 billion. This year’s results include a new micro-hospital that opened last summer in Chester County and five former Crozer Health outpatient facilities in Delaware County.
Temple University Health System had an operating loss of $9.9 million, recovering largely from a $50.5 million loss in the first half of fiscal 2026. In the same period a year ago, Temple had a $10.9 million operating loss. The health system’s revenue was $2.6 billion, up from $2.3 billion last year.
Main Line Health reported a small operating profit of $214,000, following a winter quarter setback. The four-hospital nonprofit system recorded an $8.5 million loss in the three months that ended March 31. Severe winter weather reduced patient visits, and the health system increased its reserves for medical malpractice expenses.
Tower Health swung to a small operating loss of $3.6 million. During the same period a year ago, Tower had a $4.2 million operating profit. Revenue increased 1.6% to $1.6 billion.
Steep losses continued at Redeemer Health, which reported a $29 million operating loss, compared to a $33 million loss last year. Redeemer’s total revenue rose by less than 1%, to $332 million. Redeemer owns Holy Redeemer Hospital, a 239-bed facility in Abington Township, Montgomery County, not far from Jefferson Abington Hospital.
