Indianapolis-based IU Health reported an operating income of $6.4 million (0.3% margin) in the third quarter, down from $119.7 million (5% margin) in the third quarter of 2024, according to financial documents published Oct. 29.
For the nine months ending Sept. 30, 2025, IU Health reported an operating income of $120.7 million (1.7% margin), down from a gain of $172.8 million (2.5% margin) in the same period the previous year.
The $50 million year-over-year decline in operating income was attributed to ongoing challenges in delivering more and higher-quality care amid tightening economic pressures, the health system said in an Oct. 30 news release shared with Becker’s.
Operating revenue rose 3.7% year over year to $7.1 billion for the nine-month period, driven by increased outpatient demand and strong performance in retail pharmacy. These gains helped offset lower inpatient and surgical volumes, which IU Health said reflect broader shifts in care delivery. Operating expenses increased 4.6% to $7 billion, largely due to higher labor and supply costs.
As of Sept. 30, 2025, IU Health reported $3.2 billion in long-term debt and $17.9 billion in total assets.
“We continue to evaluate the immediate and potential long-term financial impacts of policy changes at the state and federal levels and stay focused on what is within our control during these uncertain times. Our disciplined approach today will position IU Health to remain resilient and mission-focused regardless of how the policy environment evolves,” Jenni Alvey, senior vice president and CFO said. “In addition to our ongoing commitment to affordability and access, we are also focused on recruiting and retaining our highly skilled, compassionate workforce who deliver the best care to patients across the state. This focus on our team members allows us to serve more Hoosiers while realizing additional operational efficiencies.”
