New York City-based Memorial Sloan Kettering Cancer Center recorded an operating loss of $47.9 million (-0.6% operating margin) in 2025, down from an operating income of $202.2 million (2.5% margin) in 2024, according to its March 31 financial report.
Memorial Sloan said its operating loss in 2025 was primarily driven by increased costs associated with personnel, medical and surgical supplies, pharmaceutical expenses and planned one-time investments tied to its Feb. 1 go-live of its Epic EHR system.
The system reported total operating revenue of $8.5 billion for the 12 months ended Dec. 31, a 4.7% increase year over year. Hospital care and services increased 3.8% year over year to $7.1 billion. Grants and contracts increased 4.9% to $538 million.
Total operating expenses were $8.6 billion in 2025, an 8% increase year over year. Compensation and fringe benefits increased 7.4% to $4.3 billion. Purchased supplies and services totaled $3.7 billion, a 9.2% increase.
Memorial Sloan said $177 million of its operating expense growth was associated with the Epic go-live support and training. Adjusting for Epic-related expenses, operating expenses grew 6.6% year over year.
The system reported a net income of $879.1 million in 2025, up from $564.9 million in 2024.
At the Becker's Perioperative Summit, taking place September 14–15 in Chicago, perioperative leaders and healthcare executives will focus on improving operating room efficiency, enhancing patient safety, optimizing staffing and driving innovation across surgical services. Apply for complimentary registration now.
