Advocate Health reported stronger financial performance for the three months ended March 31, 2026, as higher patient volumes and investment gains helped drive revenue and earnings growth across the nation’s third-largest nonprofit health system. Total revenue increased 10.8% year over year to $10.15 billion, while operating income rose to $380.1 million from $329.1 million during the prior-year period. Revenue in excess of expenses attributable to the controlling interest increased 28.3% to $640.9 million.
The Charlotte, North Carolina-based system benefited from growth in both inpatient and outpatient activity. Discharges increased 1.9%, outpatient surgeries rose 4.1% and physician productivity, measured by work relative value units, increased 5.3%. Emergency department visits declined 3.8% year over year, while average length of stay improved to 5.35 days from 5.45 days.
Patient service revenue increased to $8.74 billion from $7.78 billion a year earlier, reflecting volume growth and reimbursement improvements. Commercial payors represented 45% of patient service revenue, while Medicare and Medicaid accounted for 31% and 22%, respectively. Medicaid’s share of revenue increased from 17% in the prior-year quarter.
Advocate Health ended the quarter with $27.2 billion in unrestricted cash and investments and maintained a strong liquidity profile, although days cash on hand declined to 269 days from 283 days at year-end 2025. Total assets increased to $54.9 billion, while net assets reached $35.3 billion. Long-term debt rose to approximately $7.9 billion, driven in part by increased commercial paper borrowings.
The quarter also marked a significant organizational milestone as Advocate Health combined Advocate Aurora Health and Atrium Health Wake Forest Baptist into a single nonprofit credit group structure in March 2026. The integrated system now operates across Illinois, Wisconsin, North Carolina, South Carolina, Georgia and Alabama through the Advocate Health platform created by the 2022 combination of Advocate Aurora Health and Atrium Health.
