Despite sharply higher labor costs and sharply lower federal stimulus dollars, Indiana University Health last year generated a profit of $121 million from its health care operations.
However, the nonprofit health system posted an overall loss for the year primarily because of an investment loss of nearly $700 million. The year before, investments had produced an $883 million gain. Broader markets in 2022 suffered significant losses. For example, the S&P 500 index in 2022 lost 18% of its value, including dividends, according to New York University.
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The overall loss recorded by IU Health in 2022, $715 million, was the first loss posted by the health system since 2008, when it also lost money because of a decline in the value of investments, according to an email from Lisa Tellus, manager of public relations for IUH. The results are for the entire IU Health system. Reports for 2022 for individual sites, including Bloomington, were not yet available on the state health department website.
While the statewide health system's overall revenue from health care operations increased by 2.8%, or about $217 million last year, health care-related costs rose by 3.3%, or about $257 million, primarily driven by higher labor costs.
Revenue from treating patients rose 4.6% last year, or about $330 million, to $7.5 billion. Revenue from private insurers and government programs, Medicare and Medicaid, all increased. The nonprofit said in a news release that hospitals were “filled to capacity” during much of the year as its facilities treated 22,000 COVID-19 patients and administered more than 600,000 vaccines. It also said it saw more patients for surgeries, ER visits and radiological exams — though hospital admissions fell slightly.