Montefiore operating margin dips to -0.4% in H1

New York City-based Montefiore Health System recorded an operating loss of $17.9 million (-0.4% operating margin) in the first half of 2025, down from an operating income of $32.3 million (0.8% margin) during the same period last year, according to its Aug. 28 financial report. 

The system reported total operating revenue of $4.4 billion for the six months ended June 30, up from $4.1 billion during the same period last year. Net patient service revenue was $4 billion, up from $3.8 billion. Grants and contracts totaled $71.8 million, down from $119.5 million.

Operating expenses totaled $4.4 billion in the first half of 2025, up from $4.1 billion during the same period last year. Salaries, wages and benefits totaled $2.7 billion, up from $2.5 billion. Supplies and other expenses totaled $1.5 billion, up from $1.4 billion. 

“The recent federal legislation has challenged an already difficult fiscal climate for all hospitals and health systems, especially ones like ours which serve a patient population predominantly covered by government insurance,” Collen Blye, Montefiore’s executive vice president, CFO and chief business officer, said in a statement shared with Becker’s. 

Ms. Blye said to ensure sustainability, the system will “continue to strive to diversify the revenue base, bring in new revenue streams to facilitate growth and control expenses.”

“We will also carry on our work with elected officials to identify vital, long-term funding opportunities for hospitals and health systems which deliver life-saving care and essential health programs to their constituents, while serving as major job creators in the communities they represent,” she said. 

Montefiore reported a net loss of $2.5 million in the first half of 2025, down from a net income of $57 million during the same period last year. 

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