INDIANAPOLIS – Indiana University Health posted higher operating revenue in the six months ended June 30 compared to one year ago; however, operating income decreased compared to the year before.
Core operating revenue increased 7.1%, or $296.4 million versus the first half of 2023 due to strong patient volumes. Core operating expenses, excluding strategic projects, increased 7.5% or $302.7 million, as costs of labor, supplies and drugs increased to meet the higher demand for surgeries and inpatient care. Consolidated revenue increased 5.1% or $216.4 million versus the first half of 2023 to $4.5 billion, and consolidated expense increased 8.8% to $4.4 billion.
IU Health recognized operating income of $53.1 million with an operating margin of 1.2% for the first half of the year, compared to $195.7 million and an operating margin of 4.6% in the year-ago period. However, operating income from core operations was comparable year over year.
“Across the state, patients consistently place their trust in IU Health, shown by the rise in our patient volumes and revenues. Costs have surged at a faster pace than our revenue growth as labor and supply and drug costs continue to increase, and we focus on strategic capital investments that support our future vision,” said Jenni Alvey, senior vice president and chief financial officer. “We remain confident that our continued focus on operational efficiencies and growth will aid us in achieving IU Health’s vision of making Indiana one of the healthiest states in the nation by ensuring healthcare is of the highest quality, affordable and accessible.”
Even with the financial and operational challenges facing the healthcare industry, IU Health remains committed to 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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Indiana University Health is Indiana’s most comprehensive healthcare system. An academic health center, IU Health provides leading-edge medicine and treatments.
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