MSK reported a deficiency of operating revenues over expenses totaling ($47.9) million and an operating cash flow margin of 3.7% for 2025. These results reflect planned one-time investments related to the go-live of the Epic electronic health record (EHR) system alongside higher operating expenses including personnel, medical and surgical supplies, and pharmaceuticals consistent with industrywide increases in drug prices.
Operating expenses rose by 8.0% driven by operating costs as well as personnel growth, including an 7.4% increase in compensation and fringe benefits compared to 2024. Despite these cost pressures and the EHR go-live, operating revenues grew 4.7% year-over-year, including a 3.8% increase in patient revenue compared to 2024. Following the February 1, 2025 Epic launch and consistent with EHR go-lives across the industry, MSK experienced a temporary dip in patient activity in February and March. However, patient activity stabilized in Q2 and Q3 and rebounded strongly in Q4 across key service areas. As a result, patient revenues increased 9.4% in Q4 compared to Q3, driving 10.1% operating revenue growth compared to Q3.
MSK remains focused on advancing a long-term financial strategy centered on expanding patient access, strengthening operational discipline, and supporting the Institution’s mission-driven growth.
For more information, please see instructions to access our financial disclosure report available at https://www.dacbond.com/ or https://www.mskcc.org/public-notices/financial-information.
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