IU Health focuses on patient care, safety during pandemic disruptions and financial challenges
October 29, 2020
INDIANAPOLIS — Indiana University Health has filed a third-quarter financial report that reflects a continued focus on patient care and safety initiatives during a time of financial and operational disruptions from the coronavirus pandemic.
Patient service revenue declined 2.5% to $4.5 billion in the first nine months of 2020 compared the same period last year, as Indiana’s largest healthcare provider weathered temporary closures, supply disruptions and deferred medical procedures from the pandemic beginning in the first quarter. Although elective surgeries and other procedures were successfully restarted after a three-month disruption, IU Health saw decreases over the nine-month period in hospital admissions, surgical cases, ER visits and inpatient days.
“As the coronavirus remains active in Indiana and elsewhere, IU Health continues to rely on its operational planning and strong balance sheet to help withstand the negative economic impacts from the pandemic,” said Jenni Alvey, senior vice president and chief financial officer of IU Health. “IU Health is prepared for new surges in the pandemic and remains committed to providing the best-available care to our patients, team members and community.”
Significant investments in COVID-19 care during the pandemic include acquiring unprecedented amounts of personal protective equipment for caregivers and patients, building more negative-pressure hospital rooms, establishing a free virtual clinic that has screened over 82,000 people, and creating a testing lab that has completed more than 293,000 tests. More than 1,500 patients have been treated at IU Health hospitals for COVID-19.
IU Health has retained its workforce of 34,000 team members during the pandemic without furloughs or pay disruptions to ensure high levels of care are maintained for Indiana. IU Health also remains committed to long-term investments in new and enhanced services and facilities. A new IU Health Frankfort Hospital will open in the fourth quarter and construction continues on a replacement IU Health Bloomington Hospital and a maternity and neonatal center at Riley Hospital for Children, both opening in 2021.
Other financial and operational results for the nine months:
- Operating expenses rose 5.2% to $4.66 billion
- Net income fell 63% to $329 million
- IU Health recognized $221 million in federal CARES Act stimulus funds given to healthcare providers to help offset revenue loss and higher expenses, including heightened safety precautions, due to the pandemic
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