IU Health revenue and operating income improve in first half, operational challenges remain
August 03, 2023
INDIANAPOLIS – Indiana University Health posted higher operating revenue and income in the six months ended June 30 compared to a year ago.
Operating revenue increased 8.7% to $4.25 billion versus the first half of 2022, when IU Health suspended non-urgent surgeries and procedures in response to the COVID-19 surge that year. Operating expenses rose 3.4% to $4.06 billion as cost of labor, supplies and drugs increased to meet patient demand. IU Health recognized operating income of $195.7 million compared to an operating loss of $8.5 million in the first half of last year. Including the performance of its investment portfolio and other nonoperating items, IU Health reported a bottom-line gain of $619.4 million for the six months compared to a $929.6 million loss in the year-ago period, as financial markets rebounded.
“While operating results have improved compared to last year when we were still battling a COVID-19 surge, inpatient volumes continue to fall short of pre-pandemic levels,” said Jenni Alvey, senior vice president and chief financial officer. “Overall financial performance is trending in the right direction, however cost pressures throughout healthcare require that we continue to focus on long-term, sustainable strategies to improve operational efficiencies and reduce administrative costs.”
Even with the financial and operational challenges facing the healthcare industry, IU Health has initiated 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.
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