Hefty losses have slowed for Independence Health System in the months leading up to its acquisition by West Virginia University Health System.
The five-hospital network said Wednesday its operating losses fell to $7.3 million in the second half of last year, down from $16.3 million over the same span in 2024.
Independence took a $74 million operating loss in 2023, its first year of existence as a merger between Butler Health System and Excela Health. The organization’s financial stability has gradually improved since then, even if progress has been uneven across hospitals.
Butler Health System, comprising Butler Memorial and Clarion hospitals, accounted for nearly all of the operating losses in the latest financial data. Excela Health and its three hospitals — Frick, Latrobe and Westmoreland — were only $702,000 in the red.
Both sets of hospitals have narrowed their losses through more favorable rate agreements with insurers, according to Independence. The network said Excela’s improved fiscal outlook has also been driven by general cost reductions, while Butler is benefiting from an increase in outpatient surgeries.
Service usage has generally held steady otherwise, though observation cases declined by 6.6% at Excela, and the emergency department at Butler had 4.5% fewer visits.
Another factor that may be driving better financial results: Independence laid off about 150 people in early 2025, representing about 2% of its workforce.
Independence’s trajectory suggests it could be breaking even by the time it becomes part of WVU Health System. The deal of undisclosed value is expected to close by the end of this year, pending regulatory approval.
WVU Health System has pledged to spend $800 million upgrading Independence hospitals and affiliated physician groups over a five-year period.
The financial results released Wednesday also show a net income of $3.8 million, a vast improvement from an $8 million net loss in the back half of 2024.
The system had about $302 million in cash and investments at the end of last year, up from $261 million in 2024.
