HERSHEY, Pa. — Penn State Health continued its positive financial momentum into the third quarter of fiscal year 2025, reporting strong results through March that reflect solid performance across a range of key financial indicators.
For the nine months ending March 31, total unrestricted revenues rose by $206.2 million — a 6.6% increase compared to the same period last fiscal year. Operating margin also improved, reaching $60.3 million — up $12.4 million year-over-year and ahead of the system’s financial plan.
The system’s Days Cash on Hand (DCOH) increased to 112 days compared to 106 at the end of FY24, signaling stronger liquidity and overall financial health.
“These results reflect the unwavering commitment of our teams to provide exceptional care while operating efficiently and responsibly,” said Deborah Addo, interim chief executive officer, president, and chief operating officer of Penn State Health. “As we continue to grow and invest in our communities, we remain focused on strengthening our operations and ensuring long-term sustainability for those we serve.”
The financial results reflect ongoing efforts in expense management, operational efficiency and performance improvement across the system — all while meeting growing patient demand. Notably, overall patient volumes increased in the third quarter, helping to offset pressures from rising supply and pharmaceutical costs.
Community hospitals played a major role in the system’s success. For example, Lancaster Medical Center saw a rise in surgical cases and outpatient volume, boosted by the addition of Lancaster Orthopedic Group. The hospital also treated more obstetric cases and emergency department patients during the quarter. Hampden and Holy Spirit medical centers reported sustained strong patient volumes. Hampden also began seeing obstetric deliveries from Partners in Women’s Healthcare in March, adding to its inpatient activity.
Systemwide, surgical volumes — including outpatient surgery centers — exceeded expectations, while emergency department visits remained close to budget.
These results also reflect investments in long-term infrastructure, including costs associated with Penn State Health’s upcoming transition to the EPIC electronic medical record system.
As Penn State Health moves into the final quarter of the fiscal year, it remains focused on delivering high-quality care while maintaining strong financial performance.