Indianapolis-based Indiana University Health saw an operating income of $51.2 million (1.9% margin) in the second quarter of 2026, down from $132.7 million (5.4% margin) during the same quarter last year, according to financial results published July 30.
“In today’s healthcare environment, we must continue to evolve and plan for the unexpected,” Jenni Alvey, senior vice president and CFO of IU Health, said in a July 30 news release shared with Becker’s. “Our long-range financial planning and strong fiscal stewardship allow us to continue to invest in the health of Hoosiers and communities across the state. As we work to determine how legislative changes could impact our organization and patients, we will continue our commitment to care affordability and accessibility.”
Six things to know:
1. IU Health’s operating revenue was $2.7 billion during the second quarter in 2026, up from $2.5 billion during the same quarter last year.
2. The system’s net income was $616.2 million, down from $623.7 million in the prior-year period. Operating expenses were $2.7 billion, up from $2.3 billion during the second quarter of 2025.
3. Operating expenses for the six months ended June 30 were $5 billion, a 9.3% increase from $4.6 billion during the same period in 2025.
4. For the six months ended June 30, operating revenue increased 7.4% year over year to $5 billion, up from $4.7 billion, driven mainly by higher retail pharmacy revenue and increased acuity. Total surgery cases fell 13.6% and ambulatory surgery volume dropped 51% due to the “sale of membership interests in less-than-wholly owned ambulatory surgery center subsidiaries.” Consolidated inpatient discharges were roughly flat, down just 0.4%.
5. As of June 30, long-term debt for IU Health was $3.3 billion and total assets were $18.4 billion. IU Health had 321 days of cash on hand, as of June 30.
6. More than $1.4 billion in savings has been delivered through IU Health’s multi-year care affordability initiative, according to the system.
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