IU Health remains focused on increasing access to affordable care for patients

INDIANAPOLIS – Indiana University Health posted modest financial improvement in the first half of 2025, with gains in operating income as a result of growth in outpatient services helping to offset continued cost pressure from labor expense.

Operating revenue increased 5.8%, or $259.9 million, to $4.73 billion compared to the six months ending June 30, 2024, driven primarily by stronger outpatient volumes, but tempered by modestly lower inpatient and surgery volumes. Operating expenses also increased 4.5% to $4.61 billion in the six months ending June 30, 2025, compared to the same period in the prior year, largely driven by continued workforce pressures. This resulted in an operating margin of 2.4%, up from 1.2%, but still well below pre-pandemic levels.

"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,” said Jenni Alvey, senior vice president and chief financial officer. “This strategic focus enables us to continue to deliver the best care to all patients and bring greater access to Hoosiers.”

IU Health is committed to being a leader in addressing the cost of healthcare in Indiana. The recent multi-year affordability strategy has moved commercial prices as a percentage of Medicare, closer to national benchmarks to help with the cost of care for Hoosiers.