Penn State Health reports strong financial and volume growth through third quarter of FY26

Penn State Health continued its positive financial momentum through the third quarter of fiscal year 2026, reporting improved operating performance, strong revenue growth and increased patient volumes compared to the same period a year ago.

For the nine months ending March 31, the academic health system saw total unrestricted revenues and other support increase by $339 million – a 10.1% rise compared to the prior-year period.

Net patient service revenue rose 8.7% year over year, reflecting sustained growth across key service lines, continued demand for care across the system and an ongoing focus on expanding access and availability – including for specialty care services throughout the region.

Total operating expenses increased by approximately $322 million, or 9.7%, compared to the prior-year period, driven in part by continued investments in workforce and patient care resources.

Penn State Health reported operating income of $77.6 million, compared to $60.4 million in the same period last year. This resulted in an operating margin of approximately 2.1%, up from about 1.8% in the prior-year period, demonstrating ongoing improvement in operational efficiency and financial performance.

“Penn State Health’s strong performance through the third quarter reflects both the growing trust patients place in our system and the disciplined focus of our teams on delivering high-quality, efficient care,” said Tracy Moyer, executive vice president and chief financial officer for Penn State Health. “We are encouraged by the continued growth in patient volumes and revenues, along with improvements in our operating margin, which position us well to sustain our momentum and invest in the future of health care across the communities we serve.”

Growth in patient volumes continued to support financial performance across the system:

• Admissions increased to 45,460, up 1.3% year over year
• Total surgeries grew 2.9% to 34,679 cases
• Outpatient visits rose to more than 1.31 million, a 5.6% increase
• Births increased 13.8% to 3,419

These gains were partially offset by a modest 1.8% decline in emergency department visits compared to a year ago.

The system’s days cash on hand increased to 118 days compared to 112 at the same time a year ago, underscoring the organization’s financial stability and flexibility to support ongoing operations and strategic investments.

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