Losses stabilizing for Butler Health System
While Butler Health System isn’t quite at profitability yet, it showed signs of financial recovery in its most recent quarterly report, released Wednesday, Feb. 4.
For the three months ending Dec. 31, 2025, Butler Health System — one-half of the combined Independence Health System — reported an operating loss of $1.78 million. While still a loss, it marks a major improvement over the $4.99 million loss the system sustained over the same three-month period in 2024.
“The improvement in operating results is predominantly driven by financial improvement initiatives in payor rate negotiations and increased outpatient surgeries, offset by increased purchased services,” the quarterly report stated.
For the six-month period ending Dec. 31, Butler Health System reported an operating loss of $6.72 million, just over half of the $10.7 million loss the system sustained over the same period in 2024.
The improvement was largely driven by an increase in revenue, which grew from $236.73 million in the last six months of 2024 to $247.64 million in the second half of 2025.
This more than offset a slight increase in expenses, from $247.43 million to $254.37 over that same time frame.
“The increase in expenses was due to increased purchased services,” the report stated.
Although Butler Health System merged with Westmoreland County-based Excela Health in 2023 to form Independence Health System, both halves continue to file separate financial statements.
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.
In November 2025, the combined Independence Health System announced its intent to merge with the West Virginia University Health System. Hospital officials hope for the merger to be completed by the end of the year.
