IU Health's net income dips 63%

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Indiana University Health, a 17-hospital system based in Indianapolis, saw its net income dip 63 percent through the first nine months of the year, according to unaudited financial documents released Oct. 29.

IU Health's operating revenue hit $5.1 billion in the nine months ended Sept. 30, up 2.7 percent from the same period last year. The health system's revenue totaled $1.8 billion in the third quarter of this year, up from $1.7 billion in the same quarter of 2019.

In the nine-month period, the health system's expenses rose 5.2 percent to $4.7 billion.

IU Health ended the first three quarters with an operating income of $418.2 million, compared to $511.5 million recorded in the same period in 2019. The health system's operating income reached $215.4 million in the third quarter of this year, up from $203.6 million recorded in the same period last year. 

Overall, IU Health recorded a net income of $328.5 milion in the first nine months of this year, a 63 percent decrease from the first nine months of 2019. In the third quarter ended Sept. 30, IU Health recorded a net income of $538.1 million, a 204 percent increase from the third quarter of 2019.

IU Health said due to the pandemic and deferred medical procedures it saw decreases in hospital admissions, surgical cases, ER visits and inpatient days during the nine-month period ended Sept. 30.

IU Health said it recorded $221 million in federal aid from the Coronavirus, Aid, Relief and Economic Security Act through the first nine months of the year to help offset those decreases.  

"As the coronavirus remains active in Indiana and elsewhere, IU Health continues to rely on its operational planning and strong balance sheet to help withstand the negative economic impacts from the pandemic,” said Jenni Alvey, senior vice president and CFO of IU Health. "IU Health is prepared for new surges in the pandemic and remains committed to providing the best-available care to our patients, team members and community."

 

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