Penn State Health has continued its positive financial growth through the third quarter of fiscal year 2025, reporting strong results for the nine months ending March 31. The health system showed solid performance across multiple key financial indicators.
Total unrestricted revenues rose by $206.2 million, marking a 6.6% increase compared to the same period last year. Operating margin also saw a significant improvement, reaching $60.3 million—up $12.4 million from the previous year and surpassing the system’s financial targets.
Days Cash on Hand (DCOH) increased to 112 days, up from 106 days at the end of fiscal year 2024, indicating stronger liquidity and better overall financial health.
“These results highlight our teams’ dedication to providing excellent care while maintaining operational efficiency,” said Deborah Addo, interim CEO, president, and COO of Penn State Health. “As we continue to grow and invest in our communities, we remain focused on improving our operations and ensuring long-term sustainability.”
The positive financial performance comes as a result of effective expense management, operational improvements, and the system’s ability to meet rising patient demand. Patient volumes, including hospital visits and surgeries, increased in the third quarter, helping to offset the impact of rising supply and pharmaceutical costs.
Community hospitals played a key role in these results. For instance, Lancaster Medical Center saw a rise in surgical cases and outpatient volume, especially after the integration of Lancaster Orthopedic Group. The hospital also reported higher obstetric cases and emergency department visits. Hampden and Holy Spirit medical centers also maintained strong patient volumes, with Hampden beginning to see obstetric deliveries from Partners in Women’s Healthcare in March.
System-wide, surgical volumes, including outpatient surgery centers, exceeded expectations, while emergency department visits were close to budgeted levels.
The financial performance also reflects ongoing investments in long-term infrastructure, including costs associated with the upcoming transition to the EPIC electronic medical record system.
Looking ahead to the final quarter of the fiscal year, Penn State Health remains committed to delivering high-quality care while maintaining strong financial results.
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