IU Health revenue and operating income rise in first quarter; staffing and economic pressures remain
May 01, 2023
INDIANAPOLIS – Indiana University Health posted higher operating revenue and income in the first quarter compared to one year ago.
Operating revenue increased 8% to $2.08 billion versus the year-ago quarter when IU Health suspended non-urgent surgeries and procedures in response to the largest surge of COVID-19 in the three-year pandemic. Operating expenses rose 4% to $2.04 billion in the first quarter compared to 2022, as costs of labor, supplies and drugs increased to meet the healthcare demand. As a result, IU Health recognized operating income of $45.1 million for the first quarter compared to a loss of $29.8 million in the year-ago period.
“Though operating results were slightly positive in the first quarter, inpatient volume fell short of pre-pandemic levels,” said Jenni Alvey, senior vice president and chief financial officer. “Hospitals’ financial and operating challenges that began with the pandemic continued with the ongoing shortage of clinical staffing, which has driven labor costs higher. As the year progresses, we will continue to focus on reducing administrative expenses, optimizing surgical volumes, improving efficiencies in clinical staffing, and hiring additional permanent team members.”
Despite ongoing pressures, IU Health continues to invest in improving its nationally recognized care and remains committed improving care affordability for all Hoosiers.
When including the performance of its investment portfolio and other nonoperating items, IU Health reported a bottom-line gain of $311.7 million in the first quarter of 2023, compared to a $358.5 million loss one year ago.
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