Greensburg, Pa.-based Independence Health System reported a combined operating loss of $7.4 million in the first half of fiscal 2026, an improvement from a $16.3 million loss during the same period last year, the Pittsburgh Post-Gazette reported Feb. 5.
The five-hospital system formed in January 2023 through the merger of Butler (Pa.) Health System and Greensburg-based Excela Health. Operating as subsidiaries of Independence Health System, the two report their financial results separately for bond reporting requirements.
For the six months ended Dec. 31, Butler reported an operating loss of $6.7 million and Excela reported an operating loss of $702,000, according to the report.
Butler reported operating revenue of $247.6 million through the second quarter, a 4.6% increase year over year, according to the report. Butler’s total operating expenses were $254.4 million, a 2.8% increase.
Excela’s operating revenue was $372.9 million, a 4.2% increase year over year, according to the report. Total operating expenses were $373.6 million, a 2.8% increase.
In November, Morgantown, W.Va.-based WVU Health System announced plans to acquire Independence Health System. Under the terms of the deal, which is expected to close in fall 2026, WVU Health System will commit $800 million over the next five years to modernize Independence’s hospitals, including Butler Memorial Hospital’s emergency room and Greensburg-based Westmoreland Hospital’s campus. The funds will also go toward growing clinical services and expanding access to high-quality care.
WVU said the integration will strengthen financial stability through shared capital resourcing and efficient operations. The merger will also enhance patient outcomes through coordinated population health strategies via Peak Health, the system’s affiliated health insurance organization.
