Epic launch contributes to Memorial Sloan Kettering’s $113M shortfall

New York City-based Memorial Sloan Kettering Cancer Center reported an operating loss of $113.2 million for the first half of 2025, citing rising expenses and one-time costs related to its Epic EHR implementation.

The center said in an Aug. 15 news release that its operating cash flow margin was 1.4%. The organization attributed the shortfall to higher medical supply and pharmaceutical expenses, along with investments tied to the Feb. 1 Epic go-live.

Memorial Sloan Kettering described Epic as a “cornerstone” of its digital modernization strategy, expected to improve patient satisfaction, operational efficiency and revenue cycle performance. As with other hospitals adopting new EHR systems, the cancer center saw a temporary decline in patient activity in February and March following the launch.

Despite the costs, operating revenue grew 5.2% year-over-year, including a 3.9% increase in patient revenue. Patient activity rebounded in the second quarter, with growth across key service areas, according to the release.

Operating expenses climbed 9.7%, partly due to Epic-related costs. The institution said it continues to seek efficiency measures while focusing on access, discipline and its mission-driven programs.

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