Penn Medicine reported a $337 million operating profit for the year ended June 30

The University of Pennsylvania Health System had $337 million in operating profit in fiscal 2026, up from $247 million the year before, the Philadelphia nonprofit reported to bond investors Friday.

“We saw good growth in several of our clinical programs that helped us to generate the operating performance,” Julia Puchtler, the health system’s chief financial officer, said in an interview.

That’s money “we’re going to be able to reinvest in the academic missions and in our clinical programs and our workforce,” she said.

Here are more details:

Revenue: Penn’s total revenue rose 13.7%, to $13.6 billion from $12 billion the year before. Revenue from patient care accounted for $11.4 billion of the total in fiscal 2026, according to Penn’s report to bondholders.

Outpatient cancer care and outpatient surgeries by urologists and ear, nose, and throat doctors stood out as areas of growth, Puchtler said. On the inpatient side, neurosciences and transplants had notable increases, she said.

Expenses: For the first time since 2021, the average length of time a patient spent in the hospital fell below 6 days. Longer stays have higher expenses, even though hospitals generally don’t get paid more for them.

The average in fiscal 2026 was 5.93 days, from 6.14 days the year before. That looks like a small decline, but it adds up when spread over the health system’s more than 161,000 admissions in the year. The reduction helped Penn reduce expenses relative to revenue. It also freed capacity for more patients, Puchtler said.

In employee benefits, Penn had an additional $20 million in expenses because it aligned retirement plans across the system, Puchtler said.

Notable: Penn refinanced about $300 million in debt last month at a lower interest rate. That means the health system will save $28 million in interest payments over the next 9 or 10 years, Puchtler said.