Cleveland Clinic Indian River Hospital filed its annual financial report for its half-billion Vero Beach operation last week, showing a 21 percent decrease in operating losses from 2023, a $4 million increase in charity care provided to the county’s indigent patients, improved patient experience scores, and slightly decreased mortality and re-admission rates within a month from discharge from hospital care.
The written report to the Indian River County Hospital District, due by March 31 each year and followed by an in-person presentation of the financials, is one requirement of Cleveland Clinic’s 75-year lease on the buildings and property which remain owned by county taxpayers.
Though the Vero hospital’s financials seem headed in the right direction, the report shows the hospital took in $471.5 million but spent $520.4 million in 2024, resulting in a $48.9 annual operating loss. That’s a marked improvement from $62.4 million in losses in 2023, and $69.2 million in 2022.
Vice President and Chief Medical Officer Dr. Richard Rothman said he stood behind his January statement to Vero Beach 32963 that he expects the hospital’s month-over-month numbers to reach the break-even point by December. That doesn’t mean the entire year for 2025 will show a profit, but that by Christmas the hospital will have ceased losing money on a month-by-month basis.
“Our hospital continues to execute its plan to reimagine and create a sustainable healthcare system for residents of Indian River County,” Rothman said. “The hospital’s patient outcomes are among the best in Florida, with lower-than-expected mortality rates and improved patient experience.
“Our efforts have led to a 21 percent annual improvement in operating margin, which we expect to sustain through 2025. I am proud of the work done by our 2,500 caregivers at Cleveland Clinic Indian River Hospital and appreciate the community’s support since I started last year.”
The number of clinic visits to Cleveland Clinic Indian River Hospital doctors increased from 236,000 in 2023 to 258,000 in 2024, while the number of hospital admissions declined somewhat, from 17,620 in 2023 to 17,117.
The number of surgeries increased slightly from 8,597 to 8,685. Counting surgeries and other less-invasive procedures, that number rises to more than 11,000 unique patients.
Charity care provided to the uninsured and poorest patients increased from $17.6 million in 2023 to $21.6 million in 2024. Two areas where charity care increased the most were cancer care, and surgical services, including cardiac surgeries and procedures. Cleveland Clinic also doubled the number of endoscopic procedures performed on the poorest patients, an important tool for the early detection of various types of cancer.
Taxpayers, through property taxes paid to the Indian River County Hospital District, currently fund less than $4 million per year for charity care, $3.2 million of which goes toward prenatal care, labor and delivery through Cleveland Clinic Indian River’s Partners in Women’s Health program. The balance helps defray the cost of emergency and outpatient behavioral health services for needy patients.
Prior to Cleveland Clinic taking over the Vero hospital, the hospital district used to spend nearly $8 million per year in taxpayer dollars on indigent care. Since Cleveland Clinic took over the former Indian River Medical Center, the hospital district has spread the money previously used for hospital indigent care across more than two dozen local nonprofit organizations for various types of medical, therapeutic and support services, and the district’s budget has ballooned from $15.1 million in 2019 to more than $22.4 million today, through tax increases and rising property values.
Since 2019, Cleveland Clinic Florida has sunk $220.6 million in operating losses into its Indian River County operation, plus more than $80 million in capital improvements, topping the $300 million invested mark in January. The Emergency Department, labor and delivery, Partners in Women’s Health and the Behavioral Health Center are the biggest money-losers for Cleveland Clinic in Vero Beach in terms of charity care.
In 2019, the hospital ended the year $4.3 million in the black, but in 2020 with the pandemic came $5.9 million in operating losses, followed by $38.5 million lost in 2021.
As part of the hospital’s 75-year land and building lease agreement, which carries no rent for the first 10 years, Cleveland Clinic is required to make significant capital investments and report those To the hospital district by March 31 of each year. In 2024, Cleveland Clinic invested $28.3 million in capital expenditures, $6.6 million of which was funded through philanthropy, meaning nearly $21.7 million came from Cleveland Clinic’s corporate funds and not from donors.
“From 2019 to 2024, Cleveland Clinic IRH focused on providing and expanding services. Cleveland Clinic IRH aimed to enhance clinical care across nearly 50 medical specialties and subspecialties,” Rothman said in the report.
Over that time period the hospital has boosted its staff to 50 physicians and advanced-care providers specializing in preventative and primary care.
“During this period, the hospital also invested in state-of-the-art technology and innovative treatment options to ensure patients received cutting-edge care. In the field of oncology, for example, new radiation therapy equipment has enabled more precise targeting of tumors while reducing side effects of the treatments. This technology is not available anywhere else in the county,” Rothman said. “The cardiovascular department saw the addition of advanced imaging technology, which enhanced the diagnostic capabilities and facilitated minimally invasive procedures.”
Rothman touted the hospital’s steadily improving numbers on post-discharge surveys, especially from Emergency Department patients, as December survey results showed eight of 10 patients who responded would recommend the hospital.
“This improvement is driven by our focus on patient satisfaction, teamwork, and multidisciplinary engagement,” he said.
