The Gazette offers audio versions of articles using Instaread. Some words may be mispronounced.

IOWA CITY — University of Iowa Health Care in the first quarter of the current 2026 fiscal year is running under budget in revenue and over budget in expenses — resulting in net operating income that is $15 million below expectations for the 2026 term that started July 1, a rarity for the largest health care system in Iowa.

Directed payment revenue — the result of a partnership with the state that has substantially boosted Medicaid funding for UIHC over the last three years — helped mitigate the damage by generating $107 million in the first quarter of FY26, about $7 million more than expected, per Board of Regents documents.

Without that revenue, UIHC would show a $63 million deficit for the

See Full Page