Chesterfield, Mo.-based Mercy recorded a $19.1 million operating loss (-0.4% operating margin) through the first half of fiscal 2025, down from an operating income of $59.9 million (1.4% margin) over the same period in 2024, according to its March 14 financial report.
Mercy posted total operating revenues of $5 billion in the six months ended Dec. 31, up from $4.3 billion over the same period last year. Patient service revenues increased to $4.5 billion from $4 billion. The health system attributed the increase in patient service revenue to higher volumes and contracted rate improvements. Total patient discharges increased 12.8% year over year.
Total operating expenses reached $5 billion in the first half of 2025, up from $4.3 billion during the same period last year. Salaries and benefits expenses were $2.8 billion, up from $2.4 billion. Supplies and other expenses were $1.8 billion, up from $1.6 billion. Medical claims expenses were $151.6 million, up from $56 million.
Mercy said the increase in salaries and benefits was due to growth and higher volumes, offset by a decrease in premium labor costs. The increase in supplies and other expenses was related to volume increases as well as higher medical supply and drug costs resulting from changes in patient acuity/service mix.
The system had 165.9 days of cash on hand as of Dec. 31, down from 185.7 days on June 30. As of Dec. 31, Mercy had long-term debt totaling $2.58 billion, down from $2.59 billion on June 30.
Mercy posted a net income of $98.2 million through the first half of 2025, down from $213.8 million in the first half of 2024.