Michigan Medicine reports positive financial performance for fiscal year 2026

ANN ARBOR – Michigan Medicine’s clinical enterprise reported projected positive fiscal year-end results today, with an anticipated 1.9 percent or $181.4 total million operating margin, on forecasted operating revenues of $9.5 billion.

The results reflect fiscal 2026 performance from University of Michigan Health, which includes 12 hospitals, hundreds of clinics statewide, the U-M Medical Group and the regional health network, comprised of UM Health-West in Grand Rapids and UM Health-Sparrow in Lansing.

The Regents today approved a budget that sets clinical enterprise financial performance targets for the fiscal year that begins July 1. The fiscal year 2027 plan aims for a 0.6 percent operating margin based on pending changes in the health care reimbursement and the overall operating expense landscape.

Julie Ishak, D.N.P., R.N., presented the projected results for the fiscal year that ends June 30, along with the fiscal 2027 plan, to the U-M Board of Regents during its regular meeting Thursday.

Ishak, who is Chief Nurse and Operations Executive for Michigan Medicine’s academic medical center, said enhanced access and patient volumes across our statewide network, combined with robust demand for our unique expertise and therapies in specialty pharmacy, drove the positive financial results in fiscal 2026.

“We are happy to present results that reflect our team’s commitment and dedication to our Strong BASE and Bold Future goals, which include our commitment to Belonging, Access, Safety and Quality, and Experience,” Ishak said. 

“That strategy helps us achieve goals that contribute to a successful, integrated, cost-effective and high-quality health care system,” said Ishak. “We are grateful to our teams who every day deliver the high standard of care for our patients and communities. Their efforts allow us to fulfill our mission of research, education and clinical care that advances health to serve Michigan and the world.”

In fiscal 2027, Michigan Medicine anticipates more than 97,000 inpatient admissions and 5 million outpatient visits across more than 200 locations.

Ishak also updated the Regents on how Michigan Medicine is contributing to health improvement for Michiganders, reporting progress to reduce disparities in adult blood pressure control and improving well-child visit completion rates. She highlighted additional quality and safety wins in three key areas: improvements in adult mortality; fewer catheter-associated urinary tract infections; and fewer patient safety indicator events.

Ishak also shared that U-M Health safely reduced inpatient and observation lengths of stay, increased new patient visits and met access targets across 14 specialties. 

“Our focus continues to be on providing patients across Michigan with safe, high-quality care, close to home. We are committed to continuous improvement in patient care and experience while increasing access,” Ishak said.

Michigan Medicine has enhanced access through expansion into new communities. After opening in June 2025, its Ypsilanti Health Center now manages 53,127 primary care and specialty care visits.

Michigan Medicine opened the D. Dan and Betty Kahn Health Care Pavilion in November 2025. The Troy Medical Campus in Oakland County, Michigan, which will consist of three unique facilities on one shared campus, is under construction. One building will contain the Frances and Kenneth Eisenberg Troy Center for Specialty Care, expected to open in spring 2027. The other two buildings -- the Sidney and Madeline Forbes Advanced Imaging Center and the Samuel and Jean Frankel Cardiovascular Center — are expected to open in fall 2027.

Michigan Medicine is also expanding access to care in mid-Michigan with a new health care center in Grand Ledge and a new behavioral health hospital and a new surgery center in Lansing.

“In fiscal 2027 and beyond, we will continue to build on our foundation of clinical excellence and innovation, while we strengthen connections with communities across the state,” Ishak said.

About Michigan Medicine: At Michigan Medicine, we advance health to serve Michigan and the world. We pursue excellence every day in our 12 hospitals and hundreds of clinics statewide, as well as educate the next generation of physicians, health professionals and scientists in our U-M Medical School.

Michigan Medicine includes the U-M Medical School and University of Michigan Health, which includes the C.S. Mott Children’s Hospital, Von Voigtlander Women’s Hospital, University Hospital, the Frankel Cardiovascular Center, Kellogg Eye Center, University of Michigan Health-West, University of Michigan-Sparrow and the Rogel Cancer Center. The U-M Medical School is one of the nation’s biomedical research powerhouses, with total research funding of more than $750 million.

More information is available at www.michiganmedicine.org. 

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