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.
