IU Health stays committed to affordable care while financial pressures persist

INDIANAPOLIS – Indiana University Health posted higher operating revenue in the first quarter compared to one year ago; however, operating income decreased compared to the year before.

Operating revenue increased 3.0%, or $66.3 million, to $2.26 billion compared to the year-ago quarter. Operating expenses increased 4.6% to $2.28 billion in the first quarter compared to 2024, as costs of labor, supplies and drugs increased to care for our patients. The system experienced a higher level of flu cases with patients staying in the hospital for longer on average than the same quarter last year. IU Health recognized an operating loss of $18.4 million with an operating margin of -0.8% for the first quarter compared to operating income of $15.4 million and an operating margin of 0.7% this time in 2024.

“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,” said Jenni Alvey, senior vice president and chief financial officer. “Despite these financial challenges, IU Health remains steadfast in its commitment to ensuring high-quality care is affordable and accessible for all Hoosiers.”

IU Health has remained committed to its multi-year strategy and affordability plan to bring commercial prices as a percentage of Medicare consistent with national averages to help with the cost of care for Hoosiers.