UPenn’s health system had $49 million in operating income in first quarter of fiscal 2025
The nonprofit health system's first-quarter revenue climbed 10% to $2.83 billion thanks to volume gains in transplants and other high-intensity services.
The University of Pennsylvania Health System had $49.3 million in operating income in the first quarter of fiscal 2025, down from $57.8 million in the same period last year, the nonprofit health system reported to bondholders Friday. Revenue climbed 10%, to $2.83 billion from $2.57 billion.
Here are some details:
Revenue: Despite having lower-than-expected growth in certain surgical areas, such as GI and orthopedics, overall revenue growth was solid because of strong performance in neurosurgery, cardiac surgery, and transplants, the health system’s chief financial officer, Julia Puchtler, said in an interview Monday. For example, Penn did 140 abdominal solid organ transplants, such as kidneys and livers, in the three months ended Sept. 30, up from 129 in the same period a year ago, Puchtler said.
Expenses: Puchtler highlighted two areas of expenses as significant factors in Penn’s results: employee benefits and medical malpractice legal costs. The cost of employee benefits rose 11.5%, while salaries and wages were up 7.2%. Penn used to record $25 million in a fiscal quarter for medical malpractice expenses. It’s now $35 million a quarter, Puchtler said.
Notable: Some unplanned repairs at its Roberts Proton Therapy Center in University City meant the center didn’t serve its normal volume of patients in the first quarter. Last month, the center was back at full capacity, Puchtler said.