IHA Responds to State Financial Results; Urges Medicaid Relief for Hospitals

“It is disappointing that the State of Indiana has chosen to revert over a half billion dollars of the SFY 2023 Medicaid appropriation to the General Fund surplus at a time of great financial strain on hospitals. Operating on cumulative negative margins, Indiana hospitals are facing difficult decisions about which services they can continue to provide, and many across the state have announced cuts and closures. The increasing gap between rising expenses and reduced reimbursement rates from government Medicare and Medicaid payments has proven unsustainable.  ​

The Indiana General Assembly missed the mark this session by targeting a certain group of hospitals with punitive legislation instead of addressing the biggest issue plaguing health care affordability and access – Indiana’s historically low Medicaid base rates that have not been increased in over 30 years. Currently, there is a $2.7 billion shortfall in unpaid Medicaid costs statewide which not only hurts hospitals, but harms consumers, who must pay increasing premiums to cover this cost-shifting gap. Indiana hospitals urge the State to provide Medicaid relief before the next budget cycle. Without immediate assistance, the growing Medicaid shortfall will only exacerbate the closure of health care facilities and services across the state.” ​​

​—​ Brian Tabor - President, Indiana Hospital Association​​​

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