IU Health Sees First Quarter Operating Loss – Inside Indiana Business
Indiana University Health announces a first quarter operating loss of $29.8 million. The Indianapolis-based health system says expenses resulting from the COVID-19 pandemic have exceeded operating profit gains.
IU Health says it saw fewer COVID-19 patient admissions in the quarter, however staffing issues remain a concern.
“We continue to overcome the labor shortage by investing in our workforce, particularly in patient-facing roles, to ensure we can meet patient demand,” said Jenni Alvey, senior vice president and chief financial officer of IU Health. “Additional investments in the workforce are expected throughout 2022. These investments are made to provide the best possible clinical care and improve Indiana’s health and wellness. The challenges of the pandemic again show the critical need for hospital systems to maintain a strong financial position to be able to manage unforeseen operational challenges and continue to serve the patients who depend on us.
The health system says spending in the quarter rose 16% from the same period last year, including increases in salaries, wages and benefits for frontline clinical staff. The increase was part of nursing bonus pay initiatives, using more contract and temporary labor, higher starting salaries and base salary increases.
IU Health also reported a 3% increase in operating revenue in the quarter. The health system says it has seen an increase in hospital admissions, X-ray exams and emergency room visits, while surgical cases are down compared to the same period last year.