Temple Health reported a $15 million operating loss in the first quarter of fiscal 2026
The North Philadelphia nonprofit's quarterly revenue for the three months that ended Sept. 30 was $800 million, which was a 13% increase over the same period last year.
Temple University Health System reported a $15 million operating loss in the three months that ended Sept. 30.
The result for the first quarter of fiscal 2026 was an improvement from the North Philadelphia nonprofit’s $17 million loss last year.
“We’re pretty happy where we are,” CEO Mike Young said Wednesday. Revenue was above budget and labor costs were on budget in the first quarter for the first time in several years.
Here are some details:
Revenue: Total revenue was $800 million, up 13% from $712.5 million a year ago. Outpatient revenue increased by nearly $62 million, much of it from the health system’s specialty and retail pharmacy business.
Temple participates in a federal program for safety-net hospitals that allows it to buy certain drugs at a discount and then get full reimbursement from insurance companies.
Expenses: Temple noted in its report to municipal bond investors Tuesday that salaries, including higher pay rates for nurses, and higher drug spending for outpatient infusions and other pharmacy business were the biggest expense increases.
Notable: On the labor front, several job categories remain hard to fill, Young said. Those are CT techs, nurse anesthetists, and lab techs. “Other than those three [specialties], it’s not where it was three years ago, where you couldn’t find anybody,” he said.