IU Health revenue and operating income improve while system invests in team members
November 03, 2023
INDIANAPOLIS – Indiana University Health posted improved operating revenue and income in the nine months ended Sept. 30 compared to a year ago.
Operating revenue increased 7.1% to $6.37 billion, primarily driven by increased inpatient and outpatient surgeries, compared to year prior when IU Health suspended non-urgent surgeries and procedures in response to the COVID-19 surge during the early months of that year. Operating expenses rose 3.8% to $6.12 billion as cost of supplies and drugs increased to deliver the higher volume of care. Salaries, wages and benefits were comparable to the same period of 2022 as increases in pay and benefits were largely offset by decreases in clinical premium pay programs. As part of its annual market analysis, IU Health recently adjusted pay for nursing roles and other critical clinical positions to ensure wages are competitive to recruit and retain the best talent to care for patients.
IU Health recognized operating income of $255.2 million compared to $56.5 million in the first nine months of last year. Largely due to the impact of rebounding financial markets on its investment portfolio, IU Health reported total revenue over expenses of $578.5 million compared to a $1.1 billion loss in the year-ago period.
“Overall financial performance is trending in the right direction, but we still have challenges. Continued financial investments in our team members coupled with cost pressures require that we continue to focus on sustainable strategies to improve operational efficiencies and reduce administrative costs,” said Jenni Alvey, senior vice president and chief financial officer.
Even with the financial and operational challenges facing the healthcare industry, IU Health remains committed to its multi-year plan of bringing 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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