IU Health Posts 4% Operating Margin in Third Quarter

Indiana University Health reported operating income of $110 million, a 4% margin, for the third quarter of 2026, up from $6.4 million (0.3% margin) a year earlier, according to its financial report. Total revenue reached $2.7 billion in the quarter, up from $2.4 billion, while operating expenses rose to $2.6 billion from $2.4 billion. For the nine months ended Sept. 30, 2026, operating income was $146.4 million (1.9% margin), with revenue up 10% year over year to $7.8 billion and expenses up 9.8% to $7.7 billion, driven by labor, pharmaceutical and supply costs. The system's CFO said it is helping patients navigate evolving coverage requirements while investing in a new downtown Indianapolis hospital campus, a systemwide Epic implementation, and a new Fort Wayne hospital, both slated for a May 1, 2027 go-live.