Temple University Health System topped $3 billion in annual revenue and had $22 million in operating profit in the year that ended June 30, up from $973,000 in profit the year before, according to a report to investors Friday.
The North Philadelphia nonprofit health system improved its profitability by focusing on reducing supply chain costs and relying less on high-cost agency staffing, chief financial officer Jerry Oetzel said in a statement. “In addition, Temple Health saw slightly higher than expected payment rate increases from governmental payers,” he said.
Here are details on Temple’s fiscal 2025 financial results:
Revenue: Temple’s $3.3 billion in total revenue increased 15% compared to fiscal 2024. More than 80% the patient revenue increase came from outpatient services, thanks largely to gains in Temple’s pharmacy business. Temple also saw higher revenue from inpatients with serious medical conditions and organ transplants.
Expenses: A $44.3 million, or 55%, increase in insurance expenses was driven by medical malpractice losses. Temple also noted higher pay rates for nurses, who are in the midst of negotiating a new union contract at Temple University Hospital.
Noteworthy: Temple is expecting to lose $30 million to $90 million annually because of changes to Medicaid in the federal law signed by President Donald Trump in July, Oetzel said.
Separately, Temple reported cash reserves of $1 billion on June 30, up from $943.9 million 12 months earlier. Still, the number of days of cash on hand fell to 116 from 124 because of higher operating expenses.