Legacy Health Narrows Operating Loss to $7.1M in Q2
Legacy Health, a Portland, Oregon health system, reported an operating loss of $7.1 million (-0.8% margin) in the second quarter of fiscal 2027, ended Sept. 30, down from a $28 million loss (-3.5% margin) a year earlier, per its Nov. 6 financial report. Total operating revenue rose 9.5% to $876.8 million while operating expenses rose 6.7% to $884 million, with higher wages, supply and purchased services costs. About 70% of Legacy's patient volume is covered by government payers, where reimbursement growth has lagged cost inflation; the system also cited higher labor costs tied to Oregon staffing requirements and unionization, declining commercial coverage after ACA marketplace subsidy changes, and increased uncompensated care under an Oregon law. Net income reached $51.6 million, boosted by a $72.3 million gain from the sale of medical office buildings.