Detroit-based Henry Ford Health recorded an operating income of $77.5 million (2.4% operating margin) in the first quarter of 2025, down from an operating income of $98.5 million (4.5% margin) during the same quarter in 2024, according to its May 28 financial report.
Five things to know:
1. Henry Ford Health’s operating income for the first quarter of 2025 includes activity related to its joint venture with Ascension Michigan, which launched Oct. 1. The joint venture brought Ascension’s southeast Michigan and Genesys healthcare facilities and assets together with Henry Ford. The system’s first quarter 2024 results included an adjustment for net state–directed supplemental Medicaid payments of $48 million related to the fourth quarter of 2023.
2. The system reported total operating revenue of $3.2 billion for the three months ended March 31, up from $2.2 billion during the same period last year. Net patient service revenue increased $866 million year over year, $819 million of which was attributed to the Ascension Michigan combination. Net healthcare premium revenue increased $103 million year over year, primarily due to higher individual marketplace and Medicare Advantage membership.
3. Total operating expenses were $3.1 billion in the first quarter of 2025, up from $2.1 billion during the same period last year. Salaries, wages and benefits increased by $418 million year over year, $369 million of which was attributed to the Ascension Michigan combination. Supply costs increased $200 million year over year, $165 million of which was attributed to the combination.
4. Henry Ford Health had 107 days cash on hand as of March 31, compared to 115 on Dec. 31.
5. The system reported a net income of $170.1 million in the first quarter of 2025, down from $189.6 million during the same quarter in 2024.
