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IU Health suffers small decline in 2013 profit

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Indiana University Health’s business deteriorated last year in every area except one—outpatient visits to Indianapolis-area facilities.

That performance led IU Health to bring in slightly less money from its operations, according financial statements the Indianapolis-based hospital system filed Friday.

IU Health earned $323.6 million last year, down 41 percent from the year before. Revenue from operations fell 5.9 percent to $5.2 billion.

But the the results weren't quite as bad as they look. Excluding one-time gains and losses from each year, IU Health would have earned $261.3 million last year, down by 2.5 percent.

A key reason for the lower income was higher losses by the ambulatory surgery centers in which IU Health owns a non-controlling interest. Excluding those losses from both years, IU Health would have enjoyed a 5.6-percent increase in profit.

IU Health was able to combine price hikes and an increase in outpatient visits to its Indianapolis facilities to actually increase its revenue from patients.

“Net patient service revenue ... increased by $65.5 million for the year ended December 31, 2013, over the prior year, which reflects the effect of rate increases of approximately 8 percent and increased volumes for outpatient services, which in aggregate, more than offset the decline in admissions,” IU Health officials said in financial documents.

IU Health is the second major Indiana hospital system to report 2013 finances, a year in which congressional cuts to hospital funding and declining patient volumes caused hospitals to lay off hundreds of workers.

In February, Franciscan Alliance reported that its operating income fell by 48 percent when compared apples-to-apples with its results from 2012.

Franciscan earned $16.9 million last year, when adjusted for differences between the two years, down from $32.5 million in adjusted profit the year before. Revenue fell in 2013 by 1.2 percent to $2.4 billion.

The problem at IU Health was that fewer patients showed up at its facilities.

Inpatient visits to its hospitals, meaning a patient stayed overnight, fell 5.7 percent. The number of days patients were in the hospital also declined, 4.5 percent.

And surgeries—a vital source of revenue for hospitals—were down. The number of inpatient surgeries fell 3.7 percent and the number of outpatient surgeries fell even more, 4.3 percent.

Even emergency room visits and imaging tests were down, 2.1 percent and 3.8 percent, respectively.

But the one thing that increased was the number of outpatient visits to IU Health facilities.

Statewide, IU Health recorded 2.64 million visits, up 2.9 percent from the year before. But in central Indiana, which includes IU Health’s facilities in Avon, Carmel, Fishers, Indianapolis and Tipton, outpatient visits soared 13.3 percent, to more than 390,000.

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  • Who Pays for Price Increases?
    I do not understand why IU's 8%+ price increases year after year - more than three times the rate of inflation and real earnings increases - have not caused a revolt among consumers. IU is the reason why Indiana health care prices are so much higher than neighboring states.
  • Non profit eah?
    I guess we aren't even going to pretend this is a NON profit anymore... #nukethehealthcaresystem
  • Easy fix
    This should be relatively easy to make up. Just ask the employees to do more for less money and then ramrod more unnecessary tests and charges through on unsuspecting consumers. Problem solved!

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  1. Those of you yelling to deport them all should at least understand that the law allows minors (if not from a bordering country) to argue for asylum. If you don't like the law, you can petition Congress to change it. But you can't blindly scream that they all need to be deported now, unless you want your government to just decide which laws to follow and which to ignore.

  2. 52,000 children in a country with a population of nearly 300 million is decimal dust or a nano-amount of people that can be easily absorbed. In addition, the flow of children from central American countries is decreasing. BL - the country can easily absorb these children while at the same time trying to discourage more children from coming. There is tension between economic concerns and the values of Judeo-Christian believers. But, I cannot see how the economic argument can stand up against the values of the believers, which most people in this country espouse (but perhaps don't practice). The Governor, who is an alleged religious man and a family man, seems to favor the economic argument; I do not see how his position is tenable under the circumstances. Yes, this is a complicated situation made worse by politics but....these are helpless children without parents and many want to simply "ship" them back to who knows where. Where are our Hoosier hearts? I thought the term Hoosier was synonymous with hospitable.

  3. Illegal aliens. Not undocumented workers (too young anyway). I note that this article never uses the word illegal and calls them immigrants. Being married to a naturalized citizen, these people are criminals and need to be deported as soon as humanly possible. The border needs to be closed NOW.

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  5. deport now

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