Indianapolis-based Indiana University Health reported a year-over-year increase in revenue and operating income in the first six months of 2018.
IU Health recorded operating revenue of $3.1 billion in the six months ended June 30, up 4 percent from $3 billion in the same period of the year prior. The boost was attributable to annual rate increases and increased inpatient volumes. When excluding state disproportionate share revenue and other factors, the system saw patient service revenue increase year over year by 5.8 percent in the first half of 2018, according to recently released bondholder documents.
The system's expenses grew to $2.8 billion in the six-month period ended June 30, up 1 percent from the same period of the year prior. The increase was driven by a 6 percent year-over-year increase in labor costs, and a 6.5 percent increase in supplies costs.
IU Health ended the first half of this year with operating income of $279.1 million, up 48 percent from $188.2 million in the same period of 2017. When adjusted for one-time transactions or significant items relating to prior years, IU Health's operating income climbed 69 percent year over year.
After factoring in nonoperating income, the system reported net income of $300.3 million in the first six months of 2018, down from $356.1 million in the same period a year earlier.
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