Dallas-based Baylor Scott & White Health reported operating income of $1.5 billion (8.3% margin) during the fiscal year ending June 30, 2026, down from a $1.7 billion operating gain (10% margin) in the previous fiscal year, according to financial statements published Sept. 30.
Five things to know:
1. Operating revenue increased 6.6% year over year to $18.5 billion for the year ended June 30, up from $17.3 billion in fiscal 2025. Net patient care revenue increased 6.8% to $14.4 billion, while premium revenue increased 1.5% to $2.9 billion.
2. Operating income fell 11.7% to $1.5 billion from $1.7 billion a year earlier. Baylor Scott & White’s operating margin was 8.3%, compared with 10% in fiscal 2025. Operating expenses climbed 8.6% to $16.9 billion. Salaries, wages and employee benefits increased 9.4% to $7.7 billion, while supply costs rose 13.3% to $3.1 billion.
3. Investment gains lifted the system’s bottom line. Baylor Scott & White recorded $1.5 billion in total nonoperating gains, including $1.4 billion in investment gains. Revenue and gains in excess of expenses and losses totaled $2.9 billion, up from $2.7 billion in fiscal 2025.
4. The system ended fiscal 2026 with $2.55 billion in cash and cash equivalents, up from $2.47 billion a year earlier. Total assets increased to $26.29 billion from $22.93 billion, while net assets increased to $16.36 billion from $13.83 billion. Baylor Scott & White reported $4.33 billion in financial assets available for general expenditures within one year.
5. Baylor Scott & White’s health plan is exiting two lines of business. The health plan exited the Texas Medicaid managed care market in August and plans to exit its individual line of business in December. Those businesses represented about 227,077 members as of June 30 and accounted for about 68% of the health plan’s premium revenue and claims costs in fiscal 2026, according to its financial report.
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