Hershey, Pa.-based Penn State Health reported an operating income of $56.8 million (1.4% margin) for fiscal year 2024, ended June 30, a significant improvement from a $160.5 million operating loss (-3.3% margin) in fiscal year 2023, according to a Nov. 26 news release.
Here are five things to know:
1. The improved operating income was in part driven by a 12% improvement in net patient service revenue, which increased to $3.8 billion. Growth contributions included Lancaster Medical Center operations, which opened in October 2022, along with the Pennsylvania Psychiatric Institute addition, which integrated into Penn State Health in July 2023.
2. Penn State Health's net income was $138.2 million in FY 2024, up from a $125.4 million loss during FY 2023, according to its most recent financial report.
3. Total revenue for the health system was $4.2 billion in FY 2024, an 11% increase from $3.8 billion in FY2023. Total expenses were $4.2 billion in FY 2024, a 5% increase from $4 billion in 2023.
4. Penn State Health's days of cash on hand was 106 on Sept. 30, the first quarter of FY 2025, and its long-term debt was $979.7 million.
5. "Our disciplined practices have resulted in notable improvements in just one year," Paula Tinch, executive vice president of finance and CFO of Penn State Health, said in the release. "This strong financial position has enabled Penn State Health to further invest in its core missions of patient care, research and training the next generation of physicians."