The University of Pennsylvania Health System posted a $337 million operating profit in fiscal year 2026, up significantly from $247 million the year prior.
Penn’s total revenue rose from $12 billion to $13.6 billion between fiscal years 2025 and 2026 — with patient care accounting for roughly $11.4 billion of the total. A Division of Finance spokesperson wrote that the Health System’s revenue growth is “increasingly driven” by outpatient services, which accounted for over 60% of its total revenue in the last fiscal year.
Other factors contributing to the Health System’s increased revenue included clinical programs, an April acquisition of Penn Medicine Doylestown Health, and a decrease in average patient stay times from 6.14 in FY25 to 5.93 days in FY26.
According to a previous analysis conducted by The Daily Pennsylvanian, the Health System observed a 75% increase in outpatient visits and a 48% increase in emergency department visits in the decade between 2015 and 2024. In fiscal year 2026, emergency department visits rose by 24% while outpatient visits fell by 29%.
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Several of these changes came after the University’s Board of Trustees approved a new debt plan in May 2025 amid federal funding cuts. In July, the Health System refinanced approximately $320 million of debt to reduce interest rates in the coming years — which, the Division of Finance spokesperson clarified, did not impact the system’s most recent financial performance.
The Health System comprises seven hospitals and is financially tied to the University — contributing to roughly two-thirds of Penn’s total operating revenue.
According to the Division of Finance spokesperson, the Health System allocated $220 million from its operating margin to the Perelman School of Medicine for FY26 to support the school’s “research and teaching missions.”
Plans for fiscal year 2027 include “strategic reinvestments” into the workforce through increased compensation and employee benefits — such as improved laboratory and pharmacy systems and integration of health data onto Epic, an electronic health record software corporation.
Penn Medicine is also investing $401 million in its Princeton Cancer Center, which is scheduled to open in May 2028. In an October 2025 announcement, Health System CEO Kevin Mahoney wrote that the 200,000-square-foot center is Princeton Health’s first major expansion since 2012 and features various imaging and diagnostic technologies that deliver “cutting-edge” research.
