Indianapolis-based Indiana University Health posted a $18.4 million operating loss (-0.8% margin) in the first quarter of 2025, down from a $15.4 million operating income (0.7% margin) in the first quarter of 2024, according to its most recent financial report.
Five notes:
1. Total revenue for IU Health was $2.3 billion in the first quarter of 2025, up 3% from $2.2 billion during the same period last year. Total expenses were $2.3 billion, up 4.6% from the first quarter of 2024 due to an increase in labor, supply and drug costs.
2. IU Health saw a net loss of $18.6 million in the first quarter of 2025, down from a $309.3 million net income during the same period last year.
3. “While operating at a financial loss is never desirable, we believe we can course correct with our continued focus on reducing expenses and improving operational efficiencies,” Jenni Alvey, senior vice president and CFO of IU Health, said in an April 25 news release shared with Becker’s. “Despite these financial challenges, IU Health remains steadfast in its commitment to ensuring high-quality care is affordable and accessible for all Hoosiers.”
4. The health system saw heightened levels of the flu in the first quarter of 2025, with patients staying at its hospitals for longer periods of time than during the first quarter of 2024.
5. Days of cash on hand for IU Health were 341 on March 31, 2025. The health system’s long-term debt is $2.6 billion.
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