Arkansas Children’s of Little Rock reported record revenue of $1.12 billion for its fiscal year that ended June 30.
The total revenue for the nonprofit health system, which has hospitals in Little Rock and Springdale, was up 10% from the previous year, according to its audited financial statements.
Arkansas Children’s is the state’s only pediatric health system, and “because of that, we have a natural opportunity to keep growing the number of children and families we serve each year,” said President and CEO Marcy Doderer.
Its net patient service revenue climbed from $870.2 million in its fiscal year that ended midyear 2024 to $957.9 million a year later.
During its 2025 fiscal year, Arkansas Children’s expenses rose to $1.06 billion, an 8% increase from the previous year. Most of the rise in expenses came from salaries, employee benefits, and supplies and drug costs.
Its income from operations, however, rose to $60 million in the fiscal year, up from $36 million the previous year.
Doderer said that was the income generated by the two hospitals and resulted in about a 5% operating margin, which “is what we shoot for.”
As a nonprofit, Arkansas Children’s doesn’t pay income tax, “but we have the obligation that we must generate our own income to reinvest in our people, our places and our programs,” she said.
Doderer said that she expects revenue to be about the same this fiscal year as it was last year.
“We’ve had a smaller and a shorter and softer viral season,” she said. “While the flu has been very rampant in many communities, it hasn’t resulted in a lot of kids being hospitalized. That’s a good thing.”
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