Community Health sees 44% drop in first-half operating income
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Community Health Network saw an increase in admissions, emergency visits, deliveries and physician outpatient visits during the first six months of 2024.
Yet, the Indianapolis-based hospital system saw its operating income drop 44% during the period, to $42.5 million, as expenses rose faster than revenue.
Community Health reported this week that rising expenses included salaries, wages and other employee costs (up 5.1%); drugs, implants and other supplies (up 9%); laboratory costs and higher contract labor (up 16.4%); insurance premiums, provider assessment taxes and other miscellaneous expenses (up 27%); and software service contracts, repairs and maintenance and trash removal (up 15.1%).
The network’s operating margin for the six-month period was 2.4%, compared with 4.5% a year ago.
Community Health also pointed to increased revenue deductions and uncompensated care during the period.
Revenue was $1.76 billion, up 5.7%. Operating expenses climbed 8.1%.
Admissions rose 4.5% and emergency visits climbed 5%. But outpatient surgeries fell 3.5% and inpatient surgeries fell 2.4%.
The network had 216 days of cash on hand on June 30, compared to 194 days on December 31.
Community Health owns seven hospitals in central Indiana.