INDIANAPOLIS (AP) — Indiana College Well being quietly donated $416 million to the Indiana College Faculty of Medication — a transfer that comes because the state’s largest hospital system faces stress to decrease its costs and earnings.
The donation wasn’t introduced by both establishment, that are separate organizations, however was famous as a “contribution to a associated entity” made Dec. 30 in IU Well being’s monetary statements issued this month, the Indianapolis Enterprise Journal reported.
An IU Well being critic stated the donation appeared geared toward lowering the hospital system’s 2021 earnings to beneath $1 billion, to about $860 million, because it faces scrutiny from state legislators and others.
“It appears to be like prefer it was an try to cut back their profitability so it didn’t seem like it was so excessive,” stated Al Hubbard, a former state Republican Occasion chairman who leads the group Hoosiers for Reasonably priced Healthcare.
IU Well being, a nonprofit group that operates 16 hospitals across the state, stated it usually helps IU’s Faculty of Medication as a part of ongoing operational work. The massive contribution permits IU Well being to help the medical faculty “in a extra significant method,” it stated.
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In recent times, IU Well being, which holds greater than $7 billion in money and investments. has contributed about $17 million a yr to the Faculty of Medication. It has additionally made bigger items to the medical faculty, together with $65 million in 2021 and $61 million in 2020.
In January, Indiana’s prime legislative leaders wrote letters calling for the state’s hospitals and well being insurers to decrease the “out-of-control prices” of well being care, saying costs in Indiana have been properly above the nationwide common.
IU Well being reported an annual revenue of $1.09 billion in 2019 and $1.1 billion in 2020. That’s reported as “extra of income over bills” since IU Well being is a not-for-profit system. IU Well being introduced in December it was freezing its costs by 2025 to assist align with nationwide common prices.
Indiana College spokesman Chuck Carney stated IU Well being offers annual funding for the Faculty of Medication, which is planning to maneuver its school rooms in coming years to IU Well being’s new downtown Indianapolis hospital. That hospital shall be constructed simply south of the present Methodist Hospital campus.
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