IU Health's operating income dips 18% in first 9 months of 2017

Indianapolis-based Indiana University Health's operating income declined in the first nine months of this year, but the health system ended the period with higher net income due to strong investment gains. 

IU Health reported revenues of $4.6 billion in the nine months ended Sept. 30, down 1.8 percent from the year prior, according to recently released bondholder documents. The system said net patient service revenue and premium revenue decreased 2.1 percent and 11.2 percent, respectively, year over year. The decrease in premium revenue was attributable to a change in products offered on the ACA exchange and lower premium rates for certain Medicaid products.

After factoring in a 0.3 percent year-over-year decrease in expenses, IU Health ended the first nine months of this year with operating income of $344.6 million, down 17.8 percent from operating income of $419 million in the year prior.

The health system's investment income totaled $355.6 million for the nine months ended Sept. 30, up from $199.6 million in the same period of 2016.

IU Health ended the first nine months of 2017 with net income of $618.4 million, compared to $390.7 million in the first nine months of last year.

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