Issue link: https://beckershealthcare.uberflip.com/i/1468176
18 CFO / FINANCE IU Health reports $358M net loss as labor expenses climb 25% By Marissa Plescia I ndianapolis-based Indiana University Health reported a net loss of $358.54 million for the first quarter of 2022 as its labor expenses soared, according to its financial results released April 28. The sys- tem had a net income of $330.5 million for the same period last year. IU Health, a 16-hospital system, had $1.93 billion in revenue for the three months ended March 31, a 2.9 percent increase year over year from $1.87 billion. Its larg- est source of revenue was patient services, which rose 6.6 percent year over year to $1.79 billion for the first quarter of 2022 from $1.68 billion last year. The system's expenses climbed 16.4 per- cent, to $1.96 billion, for the first quarter of 2022, compared to $1.68 billion for the same period last year. Salaries, wages and benefits represent a large portion of IU Health's expenses, at $1.14 billion for the first quarter this year, a 25.1 percent in- crease from the same period last year at $914.37 million. IU Health posted an operating loss of $29.83 million for the first quarter of 2022, compared to an operating income of $192.66 million last year. IU health attributed the rise in labor ex- penses to nursing premium pay initiatives and contract and temporary labor and wage increases. "We continue to work through the labor shortage by investing in our workforce, particularly patient-facing roles, to en- sure we can meet patient demand," Jenni Alvey, senior vice president and CFO of IU Health, said in a news release from the health system. "Additional workforce in- vestments are expected throughout 2022. These investments are made in order to provide the best possible clinical care and to improve the health and well-being of Indiana. The challenges from the pandem- ic again show the critical need for hospi- tal systems to maintain a strong financial position to be able to manage unforeseen operating challenges and continue serving the patients who depend on us."n Ascension posts $884M quarterly loss By Ayla Ellison S t. Louis-based Ascension reported higher expenses in the three months ended March 31 and ended the quarter with a loss, according to fi nancial documents fi led April 29. The 143-hospital system reported operating revenue of $6.69 billion in the fi rst three months of this year, up from $6.56 billion in the same period of 2021. Ascension's operating expenses climbed to $7.34 billion in the fi rst three months of 2022, up from $6.59 billion in the same period a year earlier. The increase was attribut- ed to several factors, including higher salaries, wages and supply expenses. Looking at the fi rst nine months of the current fi scal year, Ascension's operating expenses increased 8.7 percent year over year. Staffi ng challenges, increased use of contract la- bor and overtime spend pushed Ascension's total salaries, wages and benefi ts up 10.1 percent year over year in the nine months ended March 31. Ascension ended the most recent quarter with an operat- ing loss of $671.14 million, compared to an operating loss of $16.71 million in the same period last year. After factoring in nonoperating items, Ascension report- ed a net loss of $884.74 million for the three months ended March 31. A year earlier, the health system posted net income of $957.32 million. For the first nine months ended March 31, Ascension reported net income of $145.21 million, compared to $4.77 billion in the same period a year earlier. As of March 31, Ascension had 295 days cash on hand, compared to 336 days as of June 30, 2021. n