Temple Health reported $13.4 million in operating income in first half of fiscal 2025

Temple University Health System reported $13.4 million in operating income in the first six months of fiscal 2025, a sharp improvement over a $75.3 million loss in the same period a year earlier, the nonprofit owned by Temple University told municipal bond investors Tuesday.

The results include Chestnut Hill Hospital, which Temple has owned in a joint venture with Redeemer Health and the Philadelphia College of Osteopathic Medicine since the beginning of 2023. The loss at Chestnut Hill was $6 million, an $8 million improvement over the prior year, according to the Temple bondholder presentation.

Here are more details on Temple’s financial results:

Revenue: Temple reported a 22% gain in total revenue, to $1.53 billion from $1.26 billion. A key factor was a big increase in revenue from Temple’s specialty pharmacy business. Temple has been expanding the operation to take advantage of a federal drug discount program meant to benefit safety-net hospitals. Revenue also included a $69.2 million increase in state funding.

Expenses: The health system’s chief financial officer, Jerry Oetzel, highlighted the fact that for the first time in a couple years salary costs are close to budgeted expectations, instead of exceeding them. Still, Temple spent 7.8% more on salaries than it did the year before, with half the increase from pay increases and other efforts to retain staff. The remainder was from paying more people to care for increases in the number of patients, Oetzel said.

Notable: State inspectors are expected at Temple Women’s Hospital in the Crescentville section of Philadelphia next week. “I believe we’ll have the ambulatory portions approved for operations in April, and the [obstetric] portion will start in May,” Temple CEO Mike Young said. Temple paid $12 million for the former Cancer Treatment Centers of America location in 2021 after it closed that year.

When that facility reopens, the current labor and delivery spaces at Temple University Hospital will be used for 20 additional beds for basic care almost immediately, Young said. Over a 12-month period, Temple’s main hospital will also see a net increase of 28 intensive care beds, he said. The hospital has 576 licensed beds.