The University of Pennsylvania Health System reported a $109.3 million operating gain during the first quarter of the 2026 fiscal year, according to financial disclosures made to bondholders on Nov. 14.
The results were detailed in a Nov. 6 presentation to a Penn Board of Trustees committee by UPHS chief financial officer Julia Puchtler. The system more than doubled its profit from the same period last year and reflects higher patient volumes, the recent acquisition of Doylestown Health, and roughly $15 million in one-time gains related largely to settlements with insurers.
Penn Medicine recorded $3.3 billion in total revenue in the fiscal quarter ending Sept. 30, up from $2.8 billion during the same period last year. Its operating gain of $109.3 million represents a sharp increase from the $49.3 million recorded a year ago.
The acquisition of Doylestown Health, completed April 1, contributed $109 million in revenue to this year’s first quarter. Doylestown posted an operating loss in the equivalent period last year.
Excluding Doylestown, Penn hospitals saw a 5.2% rise in inpatient admissions, according to Puchtler. Including the new system, total admissions reached 40,172 — a 15% increase from 34,789 a year prior.
Across the system, physicians completed 22,956 outpatient surgeries, up 10% from 20,814 last year. Puchtler noted that while outpatient orthopedic and general surgery volumes declined slightly, the reductions were not as steep as those seen in previous quarters.
One operational metric — average length of stay — fell to 5.91 days across Penn’s seven hospitals, down from 6.16 days last year. Puchtler said the improvement “helped bolster our performance,” marking the shortest first-quarter average since FY 2021.
Last year’s financial reports show that Penn Medicine entered fiscal 2026 amid rising expenses and operational adjustments. In May, The Daily Pennsylvanian reported that the system's operating profit for the first nine months of fiscal 2025 declined despite revenue growth, as spending on supplies and purchased services increased 16% year over year.
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