Memorial Sloan Kettering Cancer Center (MSK) reported a deficiency of operating revenues over expenses totaling $(113.2) million for the first half of 2025, with an operating cash flow margin of 1.4%. The financial results reflect increased costs for medical and surgical supplies, higher pharmaceutical expenses, and planned one-time investments tied to the launch of the Epic electronic health record (EHR) system.
The implementation of Epic is part of MSK’s digital modernization efforts and is anticipated to improve patient satisfaction, operational efficiency, and revenue cycle performance in the future. The organization noted that, similar to other institutions introducing new EHR systems, there was a temporary decrease in patient activity during February and March following the February 1 Epic rollout.
Despite these challenges, MSK saw operating revenues increase by 5.2% year-over-year. Patient revenue rose by 3.9% compared to the same period in 2024. Patient activity recovered in the second quarter with consistent gains over the first quarter and strong recovery across key service areas.
Operating expenses grew by 9.7%, attributed in part to one-time costs related to EHR implementation. According to MSK, these investments were necessary for a successful transition and are expected to provide long-term value.
“MSK continues to evaluate opportunities for organizational efficiencies and cost savings while remaining focused on expanding patient access, strengthening operational discipline, and supporting the institution’s mission-driven functions,” according to the statement from Memorial Sloan Kettering Cancer Center.
MSK is based in New York City and was founded in 1884. The hospital includes a pediatric ward and serves as a training hospital. In its 2022 annual report, MSK reported conducting more than 26,000 surgeries and admitting over 24,000 patients during that year.
Additional financial information can be accessed at https://www.dacbond.com/ or https://www.mskcc.org/public-notices/financial-information.
