Mazzoni Center posted its first operating profit since 2020 with significant financial turnaround
The Philadelphia health center serving the LGBTQ community benefited in fiscal 2025 from its first full year with benefits as a federally qualified health center look-alike.
Mazzoni Center, the Philadelphia region’s largest LGBTQ health agency, reported its first operating profit since 2000 in the year that ended last June, the Center City nonprofit said Friday.
The center logged an operating gain of $1.24 million after losing $2.13 million in fiscal 2024 and $5.15 million the year before that, according to Mazzoni’s audited financial statements.
Fiscal 2025 results benefited from Mazzoni’s first full year of participation in a federal program that supports primary care for underserved and low-income communities. As a federally qualified health center look-alike, Mazzoni collected better rates from Medicare and Medicaid and had broader access to a lucrative federal drug discount program.
The center had a $4.6 million gain in net revenue from the drug discount program known as 340(b). Revenue from patients visits increased by $2 million.
Reported total revenue of $40 million for fiscal 2025, which includes gross revenue from the 340(b) program, is not comparable to the previous year because of a change in accounting.
“While the total revenue growth was partially due to fully recognizing the benefits of our FQHC-look-alike status, it was also driven by increases in patient and visit numbers,” CEO Simon Trowell said in an email.
The number of patients seen at Mazzoni increased 12% in calendar year 2025 to 10,057, Trowell said. Total patient visits reached 33,902, up 34%, he said.
During its period of steep losses, cash shortfalls, and layoffs, Mazzoni operated under the cloud of what is called a “going concern notice,” reflecting doubts about whether a business will be able to meet its financial obligations in the next year.
That warning was lifted as of April 17, according to the latest audited statement.
“We remain confident in the organization’s financial viability and have continued to take steps to advance and ensure long-term sustainability,” Trowell and chief financial officer Dan Clemons said in a statement accompanying the fiscal 2025 audit.
