Independence Health’s financial picture improving
FRANKLIN TWP — Independence Health System is planning to return to profitability next year, according to president and CEO Ken DeFurio.
DeFurio updated the health system’s finances and operations Thursday, March 20, as guest speaker at the Butler County Chamber of Commerce’s 2025 State of the County event at The Atrium.
“Things are fine,” he said about the health system that was created in 2023 in a merger of Butler Health System and Excela Health. “We’re on the right track.”
The system had a consolidated operating loss of $75 million in 2023, reduced it to $40 million in 2024, will further reduce it to about $20 million when the 2025 fiscal year ends in June and will produce positive earnings in 2026, he said.
“Next year we are budgeted to actually get this back in the black,” DeFurio said. “That’s pretty remarkable progress in a relatively short period of time.”
In addition, he said the system, which includes Butler Memorial Hospital and four other hospitals in Westmoreland and Clarion counties, is the largest employer in all three counties with 7,300 total employees, he said.
At Butler Memorial Hospital, the system is negotiating a new contract with the nurses’ union, he said. The union has been organized longer than the 39 years Defurio said he has been with the hospital and health system.
He said negotiations are going well and are being conducted respectfully.
“We will get to a successful agreement. I’m confident we will,” DeFurio said.
