Medicaid, outpatient surgeries boost IU Health
Indiana University Health, the academic hospital system that controls large portions of the Hoosier state, grew its revenue in 2015, thanks in large part to the state’s conservative Medicaid expansion.
Higher volumes of outpatient surgeries and physician office visits also contributed to IU Health’s booming revenue base. The number of outpatient surgeries increased nearly 14% in 2015.
Republican Gov. Mike Pence made a deal with the federal government last year, agreeing to the Affordable Care Act’s provision to expand Medicaid eligibility to residents who earn up to 138% of the federal poverty level. Pence’s plan offers different levels of medical and dental coverage, and also requires some beneficiaries to make monthly payments into health savings accounts.
The inaugural year of the Medicaid expansion plan led to a 19% decrease in Indianapolis-based IU Health’s bad debt in 2015, according to its financial statements. Total revenue rose 6.5% to $6.1 billion, while net operating surplus fell 1.7% to $781.8 million. The system’s operating margin declined from 13.9% in 2014 to 12.8% in 2015.