Annual rate increases and higher surgery volumes contributed to the 16-hospital system’s revenue growth. The health system recorded operating revenue of $3.22 billion in the six months ended June 30, up 3.9 percent from $3.01 billion in the same period of the year prior.
At the same time, IU Health’s expenses also increased. The system’s operating expenses totaled $2.91 billion in the first half of 2019, up 3.3 percent from the first six months of 2018. The boost was driven by a 5.3 percent year-over-year increase in salaries, wages and benefits, and a 7.3 percent year-over-year increase in supplies, drugs, purchased services and other expenses.
The health system ended the first half of 2019 with operating income of $307.9 million, compared to $281.4 million in the same period of the year prior.
With nonoperating income factored in, IU Health reported net income of $707.01 million in the six months ended June 30. That’s an increase from the $300.28 million reported in the first six months of 2018.
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