Indiana University Health's operating income increased 20 percent to $503 million in the first nine months of 2021, compared to the same period of 2020, according to its financial statements. But compared to the same period in 2019, operating income decreased by 1.7 percent.
Expenses increased by $538 million — 11.4 percent — to $5.24 billion in 2021. Indianapolis-based IU Health increased minimum wage for its staff to $16 an hour this summer to help with recruitment and retention.
IU Health operated close to capacity this summer and fall, according to an Oct. 28 press release emailed to Becker's. Patient discharges increased by 8 percent, and surgical cases increased by 16 percent in the first nine months of 2021, compared to the same period in 2020.
Because of these positive financial results, IU Health is planning several projects and initiatives:
- Starting in 2021, IU Health decreased prices by over $100 million in its highest-volume areas and plans to improve care affordability by $1 billion in the coming years.
- The system is investing $1.6 billion for the construction of a new hospital and $1.08 billion for changes to the campus and nearby properties.
- IU Health provided $900 million in community support in 2020 and established a $100 million Community Impact Investment Fund for social issues in health.
"As we continue to adapt to the pandemic and the challenging job market, IU Health has aimed to make values-based decisions with our team members and patients in mind," CFO Jenni Alvey said. "Our decisions included temporarily postponing inpatient non-emergent procedures in September while investing in our team members with market-rate wage adjustments, premium pay programs and supplemental staffing initiatives to allow us to respond to patient needs in these challenging times."