IU Health focuses on patient care amid ongoing financial pressures

INDIANAPOLIS – Indiana University Health posted higher operating revenue in the nine months ended September 30, 2024 compared to one year ago; however, operating income decreased compared to the year before.

Operating revenue increased by 7.6%, or $484 million compared to the year-ago period, to $6.86 billion. Operating expenses increased 9.3% to $6.68 billion for the nine months ended September 30, 2024. Expenses increased mainly related to higher inflationary costs as we continue work on our strategic projects, and as costs of labor, supplies and drugs increased to meet the higher demand for surgeries and inpatient care. IU Health recognized operating income of $173 million with an operating margin of 2.5% for the first nine months of 2024, compared to $255 million and an operating margin of 4.0% in the year-ago period.

“With ongoing expansions in Fort Wayne, Fishers and downtown Indianapolis, continuing to invest in facilities and tools to best support our patients and our team members helps advance IU Health’s vision to make Indiana one of the healthiest states in the nation,” said Jenni Alvey, senior vice president and chief financial officer. “While the increase in our costs appropriately reflects caring for more patients and our ongoing strategic investments, we continue to simultaneously focus on reducing expenses and improving operational efficiencies to ensure long-term sustainability.”

Even with the financial and operational challenges facing the healthcare industry, IU Health remains committed to a multi-year strategy and affordability plan to bring commercial prices as a percentage of Medicare consistent with national averages by 2025 to help with the cost of care for Hoosiers.