Memorial Sloan Kettering Cancer Center (MSK) issued the following statement regarding its financial results for the first two quarters of 2025:
MSK’s financial performance for the first half of 2025 resulted in a deficiency of operating revenues over expenses of $(113.2) million and an operating cash flow margin of 1.4%. These results are attributed to increased medical and surgical supply costs, rising pharmaceutical expenses, and planned one-time investments related to the go-live of the Epic electronic health record (EHR) system. The implementation of Epic – a cornerstone of MSK’s digital modernization strategy – is expected to drive improvements in patient satisfaction, operational efficiency, and revenue cycle performance over time.
Consistent with EHR go-lives across the industry, MSK also experienced a temporary decline in patient activity in February and March following the February 1 Epic launch.
Despite these cost pressures, operating revenues grew 5.2% year-over-year, including a 3.9% increase in patient revenue compared to the same period in 2024. Patient activity rebounded in Q2 with steady gains over Q1 2025 and strong recovery across key service areas.
Operating expenses rose by 9.7%, partly due to one-time EHR implementation costs. These investments were critical to ensuring a successful transition and are expected to generate long-term institutional 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.
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.