Indianapolis-based Indiana University Health reported an operating income of $132.7 million (5.4% margin) on revenues of $2.5 billion in the second quarter, up from a $37.7 million operating gain (1.7% margin) on revenues of $2.3 billion during the same quarter last year, according to financial results published July 31.
Five things to know:
1. Gains in operating income as a result of outpatient services growth helped offset continued cost pressure from labor expenses, according to the health system.
2. After accounting for nonoperating items, such as investment returns, IU Health reported a net income of $623.7 million in the second quarter, up from $191 million in the prior-year period.
3. For the six months ending June 30, operating revenue increased 5.8% year over year to $4.7 billion, driven primarily by stronger outpatient volumes, but tempered by modestly lower inpatient and surgery volumes.
4. Operating expenses increased 4.5% year over year to $4.61 billion for the six months ending June 30, 2025. This increase was driven by continued workforce pressures and resulted in an operating margin of 2.4%, up from 1.2% for the six-month period.
5. As of June 30, 2025, long-term debt for IU Health was $2.4 billion and total assets were $16.7 billion.
“We acknowledge the financial challenges ahead, including growing regulatory uncertainty and ongoing workforce pressures, and remain committed to delivering affordable, high-quality healthcare to meet the needs of patients across the state. That is why we continue to focus on our plans to realize greater efficiencies across our operations,” Jenni Alvey, senior vice president and CFO of IU Health, said in a news release shared with Becker’s. “This strategic focus enables us to continue to deliver the best care to all patients and bring greater access to Hoosiers.”
