A 6 percent rate increase for University of Iowa Health Care has been approved by the university's board of regents, The Gazette reported June 1.
Many commercial payers limit annual facility charge increases to no more than 6 percent, Iowa City-based University of Iowa Health Care said in its request, according to the report.
"Given UIHC's low charge levels, it would be reasonable to increase charges more than 6 percent," the request stated. "However, given the cap on charge increases in many of its contracts, it is most prudent to cap the increase proposal to 6 percent."
University of Iowa Health Care's operating income was 62 percent over budget through March and 27 percent above last year during the same period, according to the report. Its net income is 26 percent below budget and 52 percent below last year through the same timeframe.
The higher rates go into effect July 1.