Higher costs for staff and supplies squeeze Community Health’s operating income – Indianapolis Business Journal

Neighborhood Well being Community mentioned revenue from operations fell 76% final 12 months, even because the variety of admissions, emergency-room visits, doctor visits and outpatient surgical procedures all elevated.

The Indianapolis-based hospital system mentioned in a submitting Monday that revenue from operations was $32.5 million, down sharply from $140.2 million a 12 months earlier.

It attributed the drop to increased working bills, primarily salaries, advantages and provides. These objects rose sooner than affected person income, which completed the 12 months at $2.9 billion, up 4% from 2021.

One other large setback, a lack of $196.7 million on investments, was largely resulting from a market downturn. When that was included, together with another minor positive aspects and losses, the community completed the 12 months with a lack of $160.9 million.

The rise in worker prices was pushed by an 8.2% improve within the common hourly fee, a 3.2% improve in full-time equivalents resulting from improve affected person volumes, an 8.5% improve in extra time wages, a 98.9% improve in non permanent workers wages, a 22.6% improve in workers orientation prices and elevated salaries resulting from numerous premium pay changes, sign-on bonuses and different prices, the community mentioned.

The rise in provide prices was pushed by a mixture of elevated volumes mixed with elevated prices of provides. Objects bought included medicine, lab and testing provides, and implants. Of the 7% improve is provides, almost one-third was associated to elevated drug costs, Neighborhood mentioned.

Neighborhood Well being operates six hospitals in central Indiana with a complete of 1,231 staffed beds. It’s the third-largest hospital system within the Indianapolis space by variety of beds, behind solely Ascension St. Vincent and Indiana College Well being.

Affected person volumes elevated nearly throughout the board in 2022, together with admissions, (up 1.7%) adjusted affected person days (up 4.9%), emergency-room visits (up 4.6%), outpatient surgical procedures (up 4.1%), doctor visits in a clinic (up 10.6%), and digital appointments (up 7.8%).

“The development in volumes as in comparison with 2021 was skilled at most hospitals and different service places,” Neighborhood mentioned in its submitting.

Just a few classes fell or stayed even, together with deliveries (down 2.1%) and inpatient surgical procedures (flat).

Final 12 months, Neighborhood Well being acquired $52.7 million in federal Cares Ace Supplier Reduction Funds, up from $28.1 million in 2021.