IU Well being stories $715M internet loss in 2022

Indiana College Well being is the most recent system to attribute a dismal 2022 monetary efficiency to rising prices and investment-related losses. 

Indianapolis-based IU Well being on Friday reported a $715.11 million loss in 2022, in contrast with a $861.51 million achieve a 12 months earlier. The nonprofit system’s annual loss included $698.16 million misplaced as a result of poor efficiency within the monetary markets.  

Annual working income grew 2.8% to $8.09 billion, together with a 4.6% bump in affected person service income with quantity will increase in surgical procedures, emergency division visits and radiological procedures. Hospital admissions fell barely. Bills for 2022 elevated 3.3% to $7.97 billion, pushed by labor, drug and provide prices. 

IU Well being will search to beat the financial headwinds by limiting capital spending, optimizing sources and implementing operational efficiencies, the hospital mentioned in a information launch. 

As Indiana’s largest healthcare system, IU Well being operates 16 hospitals and greater than 300 doctor places of work, surgical facilities and different care services.

IU Well being additionally famous its ongoing price-reduction plan was having a adverse affect on income. In late 2021, IU Well being introduced it could take measures to carry its common business costs as a share of Medicare in keeping with the nationwide common by 2025 — a transfer anticipated to value the system greater than $1 billion in income. IU Well being beforehand got here beneath fireplace for the upper costs it charged business prospects. 

In 2020, business costs have been 280% of Medicare costs, falling to 269% in 2021. Costs have been at 265% as of the primary 9 months of 2022, the most recent obtainable information.  

A spokesperson mentioned IU Well being recorded $120 million in lowered income in 2021 on account of the price-reduction plan. That equates to 1.5% of the system’s complete working income that 12 months. The spokesperson didn’t present a quantity for 2022. 

“IU Well being has acknowledged and accepted its accountability to assist tackle value of healthcare in Indiana. We acknowledge that hospital costs for business prospects in our state are larger than the nationwide common, and we’re the one well being system up to now that has not solely dedicated publicly to lowering them however which has truly taken concrete steps to take action,” the system mentioned in an announcement final 12 months. 

The system has thus far reached a forty five% common worth discount in radiology providers, a 30% discount in specialty pharmacy and an almost 24% discount in ambulance providers. IU Well being mentioned nearly all laboratory providers are at Medicare costs or decrease. The system is planning comparable worth changes in 2023.