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 assets and implementing operational efficiencies, the hospital stated 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 unfavorable impression on income. In late 2021, IU Well being introduced it might take measures to convey its common business costs as a share of Medicare in step 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 underneath hearth for the upper costs it charged business clients.
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 accessible information.
A spokesperson stated IU Well being recorded $120 million in decreased income in 2021 because 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 clients in our state are greater than the nationwide common, and we’re the one well being system so far that has not solely dedicated publicly to decreasing them however which has really taken concrete steps to take action,” the system stated 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 stated virtually all laboratory providers are at Medicare costs or decrease. The system is planning comparable worth changes in 2023.