IU Health responds to growing patient demand as revenue, expenses rise in first half of 2021

INDIANAPOLIS — Indiana University Health responded to strong patient demand across its system in the first half of 2021.

While COVID-19 still creates special challenges for healthcare, IU Health has seen more pressures on its workforce in 2021. “IU Health has responded to the current environment by re-investing in resources and our highly skilled workforce to serve our patients’ healthcare needs,” said Jenni Alvey, senior vice president and chief financial officer.

Over the first half of 2021 compared to 2020 (during which non-essential surgeries and procedures were restricted due to the pandemic), IU Health cared for significantly more patients, with increases in surgeries (up 35.5%) and other patient services.

The higher patient volumes were reflected in operating revenue that rose 15.6% to $3.8 billion, while expenses increased 10.8% to $3.4 billion from the year-ago period. This resulted in operating income of $414 million.

As part of its response to strong patient demand and pressures in the job market, IU Health committed to increasing minimum base pay for staff to $16 an hour this month, stepping up to $18 with two years of service. The pay increases, along with compensation adjustments for other employees in the past year, help to recruit and retain the staff needed to deliver the best care for patients.

With new variants of COVID-19 spreading, IU Health continues to operate a virtual COVID-19 screening clinic, one of the state’s largest testing labs for coronavirus, and vaccination clinics, including at the Indiana State Fair this month.