You guys liked my overview of Ascension Healthcare, so we’re back with another nonprofit health system that just reported its full fiscal year report: Mercy.

After posting negative margins in 2022, Mercy Health is back firmly in the black in 2024. Stemming from acquisitions and stronger patient volumes, Mercy saw 15.6% growth in total revenues while experiencing some margin expansion from a normalizing labor environment (salaries & wages down 1.6% on a percent of revenue basis).

Meanwhile, broad, strong investment returns in 2024 are bolstering bottom lines across nonprofits, most of which, as we all know, hold sizable endowments and investment portfolios. In 2024 Mercy noted marked-to-market investment returns of almost $349 million – 64.6% of net income prior to donor restricted distributions.