{"id":186688,"date":"2025-08-30T07:09:09","date_gmt":"2025-08-30T07:09:09","guid":{"rendered":"https:\/\/www.europesays.com\/us\/186688\/"},"modified":"2025-08-30T07:09:09","modified_gmt":"2025-08-30T07:09:09","slug":"penn-medicine-reported-fiscal-2025-financial-results","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/186688\/","title":{"rendered":"Penn Medicine reported fiscal 2025 financial results"},"content":{"rendered":"

The University of Pennsylvania Health System had a $247 million operating profit in the year ended June 30, the nonprofit told bond investors Friday. <\/p>\n

The system\u2019s 2.1% operating margin was about the same as the year before, excluding last year\u2019s unusual gain from a federal drug settlement<\/a>. An overall increase in expenses has reduced margins throughout healthcare industry since the coronavirus pandemic.<\/p>\n

Penn\u2019s target for the fiscal year that started July 1 is a 2.4% operating margin, with the longer-term goal of climbing back to 4%, the system\u2019s chief financial officer Julia Puchtler said in an interview Friday.<\/p>\n

That level of profit allows the health system to transfer about $200 million a year<\/a> to Penn\u2019s medical school for education and research \u2014 which it has continued doing despite lower profitability \u2014 and to invest in growth, Puchtler said.<\/p>\n

Here are details on Penn\u2019s fiscal 2025 financial results:<\/p>\n

Revenue:<\/b> The health system reported nearly $12 billion in revenue. That total increased 10% from $10.9 billion in fiscal 2024. A small part of the growth came from the acquisition of Doylestown Health<\/a> at the beginning of April. That deal added about $120 million in revenue and the same amount of expenses in the three months that ended June 30, Puchtler said. <\/p>\n

Expenses:<\/b> The amount Penn spent on supplies and services jumped 16.6% last year. Some of that increase is from growth in chemotherapy<\/a> for cancer patients, CAR-T treatments, and bone marrow transplants, Puchtler said. These are high-cost programs, but \u201cthere\u2019s offset in the revenue to cover that, so it\u2019s good growth,\u201d she said.<\/p>\n

Robotic surgery is a counterexample. It is increasingly common because it results in better outcomes for patients, Puchtler said, but doesn\u2019t generate more revenue to offset that added cost.<\/p>\n

Noteworthy:<\/b> Penn\u2019s cash reserves were enough to cover 186 days of expenses at the end of June without any new revenue. That was down from more than 190 a year ago, partly because of the Doylestown acquisition, according to Standard & Poor\u2019s, a credit-rating agency. Puchtler said part of the proceeds from a $300 million bond sale in July added a few days of cash.<\/p>\n

Then in August, to add to its liquidity of more than $1 billion during a financially challenging time for the healthcare industry, Penn secured $300 million in short-term borrowings. That issuance of so-called commercial paper received S&P\u2019s highest credit rating for that kind of debt, according to the ratings agency\u2019s Aug. 19 report.<\/p>\n","protected":false},"excerpt":{"rendered":"The University of Pennsylvania Health System had a $247 million operating profit in the year ended June 30,…\n","protected":false},"author":3,"featured_media":186689,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5132],"tags":[5229,1448,2830,1311,67,586,132,5230,104651,68,2969],"class_list":{"0":"post-186688","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-philadelphia","8":"tag-america","9":"tag-pa","10":"tag-pennsylvania","11":"tag-philadelphia","12":"tag-united-states","13":"tag-united-states-of-america","14":"tag-unitedstates","15":"tag-unitedstatesofamerica","16":"tag-upenn-heath-system-financial-results-fiscal-2025","17":"tag-us","18":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115116465544848013","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/186688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=186688"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/186688\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/186689"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=186688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=186688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=186688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}