The Indianapolis-based health system posted $5.25 billion in revenue, a 6 percent drop from $5.58 billion in 2012. Operating income plummeted 41 percent to $323.6 million — giving IU Health a still-healthy 6.2 percent operating margin — while total profit, including investments, dropped 31 percent to $448 million.
Last year, the 19-hospital IU Health laid off 900 employees, 100 more than it initially proposed, as part of the system’s plan to cut $1 billion from its budget. According to IU Health’s audited financial statement, it had paid $6.3 million in severance costs related to the workforce reduction, as of Dec. 31, 2013. In addition, IU Health posted more than $9 million related to costs associated with an early retirement buyout.
Other key financial data IU Health reported in fiscal year 2013:
• Medicare electronic health record incentives totaled $22.2 million.
• About 58 percent of IU Health’s net patient service revenue came from managed care and private insurers. Medicare and Medicaid comprised 24 percent and 6 percent, respectively, of the system’s revenue.
• IU Health recorded $156.6 million in revenue from its health plan arm.
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