The emergency department entrance at Community Hospital South. Daily Journal file photo
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.
By John Russell, Indianapolis Business Journal
