Indiana University Health, the state’s largest hospital system, had a “slightly positive” first quarter as operating revenue increased 8% over the same quarter of 2022, when the system suspended non-urgent surgeries and procedures in response to the largest surge of COVID-19 in the pandemic.
The hospital system this week reported operating income of $45.1 million for the first quarter compared with a loss of $29.8 million in the year-ago period. Operating revenue increased to $2.08 billion.
IU Health said operating expenses rose 4%, to $2.04 billion, in the quarter on a year-over-year basis as costs of labor, supplies and drugs increased.
“Though operating results were slightly positive in the first quarter, inpatient volume fell short of pre-pandemic levels,” said Jenni Alvey, IU Health senior vice president and chief financial officer, in written remarks. “Hospitals’ financial and operating challenges that began with the pandemic continued with the ongoing shortage of clinical staffing, which has driven labor costs higher.”
When including the performance of its investment portfolio and other non-operating items, IU Health reported a bottom-line gain of $311.7 million in the first quarter, compared with a $358.5 million loss a year ago.
“As the year progresses, we will continue to focus on reducing administrative expenses, optimizing surgical volumes, improving efficiencies in clinical staffing, and hiring additional permanent team members,” Alvey said.
The IU Health system includes 16 hospitals and more than 300 physician offices, surgical centers and other care facilities.