Falls Church, Va.-based Inova Health System recorded an operating income of $582.7 million (8% operating margin) in 2025, up from $366.8 million (5.6% margin) in 2024, according to its March 27 financial report.
Inova reported total operating revenue of $7.3 billion during the 12 months ended Dec. 31, an 11.5% increase year over year. Net patient service revenue increased 10.7% to $6.8 billion, which the system attributed primarily to increased patient volume. Other operating revenue grew 11.9% to $464.9 million, which was attributed to increased retail pharmacy revenue due to increased patient volume.
The system also received $49.7 million in funding from the Federal Emergency Management Agency Public Assistance Program in 2025 related to the COVID-19 public health emergency.
Total operating expenses were $6.7 billion in 2025, an 8.7% increase year over year. Salaries and benefits increased 8.1% to $3.6 billion, primarily due to an increase in clinical staff resulting from higher patient volumes, increases in employee benefit costs, and merit and market-based pay adjustments. Other operating expenses increased 10.1% to $2.6 billion, primarily due to inflation, increased medical supplies, pharmaceutical costs, including retail pharmacy, and other expenses associated with increased patient volume.
Inova reported a net income of $2 billion in 2025, up from $1.3 billion in 2024.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.