IU Health reports positive operating results through September while continuing investments in workforce, communities and patient access

INDIANAPOLIS – IU Health maintained a positive operating margin through the first nine months of 2026 while continuing to invest in its workforce, facilities and communities. Results reflect higher patient volume and continued demand for specialized care, while the organization continues to manage rising labor, pharmaceutical and supply costs. As changes to Medicaid eligibility requirements approach, IU Health is also expanding efforts to help patients understand coverage requirements and maintain access to care.

IU Health reported operating revenue of $7.82 billion, a 10% increase over the same period last year. Overall patient volumes remained relatively consistent year over year, while revenue growth increased, partially due to demand for specialized care and pharmaceuticals.

Operating expenses increased 9.8% to $7.67 billion, driven primarily by labor, pharmaceutical and supply costs, including increased utilization of newer specialty medications. Labor expense reflects annual and market-based compensation adjustments as well as ongoing investment in a stable, permanent workforce. Total operating revenue exceeded expenses, resulting in an operating margin of 1.9%, compared with 1.7% during the same period last year.

“Our first nine months demonstrate continued execution of our long-range financial plan, with improved operating performance and ongoing investment in our workforce and communities,” said Jenni Alvey, senior vice president and chief financial officer. “We remain disciplined in managing the factors within our control while helping patients navigate evolving coverage requirements and access the care they need. Despite the environmental challenges, we remain committed to making care accessible and affordable for Hoosiers as we work to make Indiana one of the healthiest states in the nation.”