Penn Medicine announces 9 million operating gain for the first quarter of fiscal year 2026.

The University of Pennsylvania Health System reported a significant increase in its financial performance for the first quarter of fiscal 2026, achieving an operating gain of 9.3 million for the period ending September 30. This figure marks a noteworthy rise from the .3 million reported for the same quarter a year earlier, underscoring the health system’s robust growth trajectory.

For the quarter, total revenue reached .3 billion, compared to .8 billion in the equivalent timeframe last year. This year’s results include contributions from Doylestown Health, an organization acquired by Penn on April 1. Notably, Doylestown Health reported total revenue of 9 million for the corresponding quarter last year, during which it unfortunately experienced an operating loss. The integration of Doylestown Health has evidently contributed to the overall positive revenue trends within the Penn Health System.

The financial report presented to bondholders also highlighted that approximately million of this quarter’s results stemmed from unusual gains, predominantly due to settlements with insurers, as noted by Julia Puchtler, the health system’s chief financial officer. These settlement gains played a notable role in the improved financial standing.

In terms of patient metrics, excluding Doylestown, Penn’s hospitals saw a 5.2% increase in admissions compared to the prior year. The total number of admissions, including those from Doylestown, was recorded at 40,172—a significant increase of 15% from the 34,789 admissions reported in the same quarter last year. While there were some declines in outpatient orthopedic and general surgeries, the decrease was not as pronounced as experienced in the previous year. Overall, the health system noted that its physicians performed 22,956 outpatient surgeries, which translates to a 10% increase from the 20,814 performed a year prior.

An additional point of interest is the average length of stay for patients in the health system’s seven hospitals, which decreased to 5.91 days from 6.16 days in the same quarter of the previous year. This reduction marks the lowest average length of stay for the first quarter since fiscal 2021, an achievement that contributed positively to the overall quarterly performance.

These results reflect the University of Pennsylvania Health System’s ongoing efforts to enhance its operational efficiency and improve care delivery across its network, especially following the integration of Doylestown Health. The health system remains committed to navigating an evolving healthcare landscape while continuing to provide high-quality patient care.

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