IU Health’s operating revenue increased 6.7% year over year to $9.22 billion, due to increased inpatient and outpatient surgeries and medical inpatient discharges. Operating expenses increased 8% to $8.97 billion, led by growth in workforce, drugs and supplies.
The system saw $966 million in net income for 2024, down 17% from $1.1 billion in 2023. Long-term debt, as of Dec. 31, 2024, was $131.3 million and days of cash on hand decreased from 366 to 360 year over year.
“Economic challenges, including inflation, continued to create financial pressures throughout 2024,” Jenni Alvey, senior vice president and CFO of IU Health said in a Feb. 27 news release. “Despite the difficult circumstances, we have kept our commitment of reducing the cost of care and achieved our care affordability promise. While revenue growth is positive, we must continue our focus on reducing expenses and improving operational efficiencies to ensure that increased expenses do not surpass revenue growth.”
IU Health’s revenue growth in 2024 was limited again by the system’s pledge to align average commercial prices with national Medicare benchmarks by 2025 while ensuring proper care. By the end of 2025, IU Health’s affordability plan claims to haveIndiana residents more than $1 billion without compromising care access or quality.
Additionally, IU Health implemented a new organizational structure in November to streamline operations from six to four regions to improve care and aid expansion efforts. It also sold IU Health Plans, a fully insured commercial group and its Medicare Advantage products, to Elevance Health. IU Health launched its statewide medical group at the beginning of 2025, bringing five separate medical groups into one.
The system aims to save $50 million annually in operation costs, once its Indianapolis hospital expansion project is complete. It is also investing $421 million into the construction of a new hospital in Fort Wayne, Ind., which is expected to be complete by Q2 2027.
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