Butler Memorial Hospital as seen on Friday, May 10, 2024. Butler Eagle File Photo

Both halves of Independence Health System have released annual financial reports for 2025.

Butler Health System, which merged with Excela Health to form Independence Health in 2023, reported a net loss of $14.1 million over the 2025 fiscal year, which lasts from July 1, 2024 to June 30, 2025. The figure marks an improvement over the $23.95 million in fiscal 2024.

In the 2025 fiscal year, revenues for Butler Health System reached $487.5 million, an increase over the $462.5 million from 2024. However, expenditures also increased from $493.07 million in 2024 to $504.83 million in 2025.

“The improvement in operating results is predominantly driven by financial improvement initiatives in payor rate negotiations, an increase in discharges, and cost reductions, partially offset by higher utilization of locum tenens (temporary, or fill-in) physicians and medical supply inflation,” according to the report. “The increase in expenses was due to salary, supply, and purchased service inflation, as well as increased utilization of locum tenens physicians due to vacancies, partially offset by cost reduction initiatives.”

Among the major capital investments made by Butler Health System over the last 12 months were $1.8 million in renovations for the drug and alcohol rehabilitation unit at Butler Memorial Hospital and $1.1 million for a new CT scan machine.

In addition, over the three-month period between March 30 and June 30, Butler Health System reported a loss of $4.8 million — a slight improvement over the $5.1 million loss from the same period 12 months earlier.

The financial improvement for the wider Independence Health System was touched upon by president Ken DeFurio during a news conference announcing a proposed merger with West Virginia University Health System, held on Wednesday morning, Nov. 19, at Westmoreland Hospital.

“This fiscal year, we are very, very close to break-even,” DeFurio said. “We’ve come a long way from where we were to where we are today and we are in a position of strength.”

Butler Health System’s report lists two sets of numbers in its quarterly financial statements: the obligated group, which is used by lenders, and the consolidated group, which is expanded to include entities such as the Butler Health System Foundation. The numbers above reflect the consolidated group.