Temple Health reported a $50.5 million operating loss in the first half of fiscal 2026

Temple University Health System had a $50.5 million operating loss in the six months that ended Dec. 31, the Philadelphia nonprofit told bond investors Monday. In the same period the year before, Temple reported a $13.5 million operating gain.

Here are some details on Temple results:

Revenue: Total revenue reached $1.64 billion, up 7.3% from the year before. Patient revenue rose 8% due mostly to increased outpatient revenue from Temple’s pharmacy business, infusions, and same-day surgeries. Two hits to revenue were a $14.3 million decrease in state funding and decline in the number of transplants, which bring in large amounts of revenue.

Expenses: Temple attributed some of its loss in the first six months of fiscal 2026 to $20 million in extra expenses associated with the opening of its new Woman & Families Hospital, a $7.2 million increase in medical liability expenses, and a $6.4 million increase in losses under its Medicaid contract with Health Partners Plans.

Notable: Despite its operating loss, even on a cash basis, Temple financial reserves increased to more than $1 billion as of Dec. 31. Most of the gain came from investments. The reserves equal the amount of money needed to keep the health system operating for 119 days if no more revenue came in. At the end of 2024, that figure was 113 days.