Indianapolis-based Indiana University Health reported $15.4 million operating income (0.7% margin) in the first three months of 2024, a 66% decrease compared to the $45.1 million (2.2% margin) for the same period in 2023, according to its most recent financial report.
IU Health acknowledged the operating income decrease and pointed to an $18 million final adjusted payment in the first quarter of 2023 from a 2017 transaction that strengthened the operating income for that quarterly report.
Here are six findings from the report:
1. IU Health reported total revenue of $2.2 billion for the first three months of 2024, a 5.3% increase from the first quarter of 2023.
2. Total expenses increased 6.9% year over year to $2.2 billion in the first quarter of 2024.
3. Salaries, wages and benefits were $1.2 billion for the first three months of 2024, a 6% increase from $1.1 billion during the same period in 2023.
4. IU Health reported a bottom-line gain of $309.3 million, a 0.8% decrease compared to $311.7 million one year ago.
5. The health system is committed to cutting costs to keep commercial prices aligned with national Medicare averages by 2025 regardless of financial and operational challenges across the healthcare industry, IU Health said in an April 25 news release.
6. "Though operating results were marginally positive in the first quarter, economic challenges and unfavorable events in the external environment continue to create financial pressure," Jenni Alvey, senior vice president and CFO of IU Health, said in a news release shared with Becker's. "IU Health continues to invest in its team members to reduce the use of costly contract labor while ensuring patients consistently receive high-quality care. While the increase in expenses appropriately reflects the growth in full-time team members and supplies to support higher patient volumes, as well as a different mix of patients, we continue our focus on reducing expenses and improving operational efficiencies."