Delaware Health Information Network FY24, FY25
Financial Statement Audit – Fiscal Years Ended June 30, 2024 and 2025
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Report Summary
Background
This engagement was performed in accordance with 16 Del. C. § 10303(a)(18) and Del. C. § 2906.
The Delaware Health Information Network (DHIN) was created by the General Assembly in 1997 as a public-private partnership to benefit all Delawareans. DHIN became a public instrumentality of the State in 2011.
DHIN is the sole corporate member of the Delaware Center for Health Innovation Inc. (DCHI), a charitable nonstock corporation incorporated in 2014. DCHI was created to further the efforts of the Delaware Health Care Commission (DHCC). The goal of DHIN is to advance the creation of a statewide health information network and to address Delaware’s need for timely, reliable, and relevant healthcare information. DHIN’s major operation is the design and implementation of an integrated statewide health system.
Key Information and Findings
This audit contains an unmodified opinion on the financial statements for Fiscal Years 2024 and 2025. An unmodified opinion is sometimes referred to as a “clean” opinion, in which the auditor expresses an opinion that the financial statements are presented fairly, in all material respects, an entity’s financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America.
During fiscal year 2025, management identified that certain customer invoices contained incorrect service periods, resulting in revenue being recognized in an improper reporting period. Management has corrected this error which resulted in a prior period adjustment of $480,191 to beginning net position.
During the years ended June 30, 2025 and 2024, DHIN recognized $5,016,766 and $3,821,572, respectively, in nonoperating revenue from the State of Delaware, Department of Health and Social Services, Division of Medicaid and Medical Assistance (DMMA). DHIN and DMMA have entered into a professional services agreement for health care claims database (HCCD) configuration and integration services.
DHIN provides services to managed care organizations (MCOs) who are contracted with the State of Delaware to deliver Medicaid program health care services on behalf of the Division of Medicaid. DHIN recorded $1,593,232 and $1,884,004 in community health record fees from these MCOs during the years ended June 30, 2025 and 2024, respectively.
DHIN employed approximately 51 and 57 employees during Fiscal Year 2024 and 2025 at a cost of $7,684,097 and $8,297,172, respectively, representing approximately 54.5% and 55.5% of total Fiscal Year 2024 and 2025 operating expenses. The average cost per employee was $150,669 for Fiscal Year 2024 and $145,564 for Fiscal Year 2025, which signifies the entity is a highly specialized operation.
DHIN maintained cash and investment balances as of June 30, 2025 and 2024, totaling $10,891,667 and $8,898,497, respectively which represents a 111% increase from the Fiscal Year ended June 30, 2018.
DHIN recognized a change in net position (net income) of $1,036,806 during Fiscal Year 2024 and $2,110,619 during Fiscal Year 2025. DHIN increased its net position by $7.1 million (140.4%) since the Fiscal Year ended June 30, 2018.
