Indianapolis-based Indiana University Health reported an operating income of $110 million (4% margin) in the third quarter, up from $6.4 million (0.3% margin) in the third quarter of 2025, according to its most recent financial report.
IU Health’s operating expenses were $2.6 billion for the three months ended Sept. 30, 2026, up from $2.4 billion the previous year. Total revenue was $2.7 billion in the third quarter of 2026, up from $2.4 billion in the third quarter of 2025.
The system’s long-term debt was $3.3 billion as of Sept. 30, 2026.
For the nine months ending Sept. 30, 2026, IU Health reported an operating income of $146.4 million (1.9% margin), up from $120.7 million (1.7% margin) during the same period last year.
IU Health’s revenue increased 10% year over year to $7.8 billion for the nine-month period. The system’s overall patient volumes remained relatively consistent, while revenue growth increased, partially due to specialized care and pharmaceutical demand.
Operating expenses also increased 9.8% to $7.7 billion, primarily driven by labor, pharmaceutical and supply costs, which included increased utilization in newer specialty medications, the release said.
“Our first nine months demonstrate continued execution of our long-range financial plan, with improved operating performance and ongoing investment in our workforce and communities,” Jenni Alvey, senior vice president and CFO of IU Health, said in a Nov. 5 news release shared with Becker’s. “We remain disciplined in managing the factors within our control while helping patients navigate evolving coverage requirements and access the care they need. Despite the environmental challenges, we remain committed to making care accessible and affordable for Hoosiers as we work to make Indiana one of the healthiest states in the nation.”
The results come as IU Health’s downtown Indianapolis hospital nears about 80% completion. The $2.49 billion hospital, IU Health Medical Center, is part of a $4.74 billion academic medical campus. Along with the hospital campus, IU Health is also investing in a systemwide Epic implementation with a go-live day of May 1, 2027; and a new Fort Wayne, Ind., hospital that will open the same day.
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