State Senator Says Hoosier Hospitals Could Be Doing More to Lower Healthcare Costs

Source: Senator Travis Holdman 

STATEHOUSE–State Senator Travis Holdman (R-Markle) continues to question whether hospitals in Indiana are doing enough to make healthcare more affordable for Hoosiers.

This is the fourth consecutive year Holdman has raised this concern.

According to 2023 audited financial statements filed with the Indiana Department of Health, the six largest not-for-profit hospital systems operating in Indiana have net assets ranging from $1.8 billion for Deaconess Health to $24.8 billion for Ascension (Ascension’s numbers cover its operations in 19 states, not just Indiana).

“These giant hospital systems don’t pay taxes because they theoretically exist for charitable purposes, but the most charitable thing they could do with their massive reserves is lower the prices they charge Hoosier patients,” Holdman said. “Instead, we see Parkview in Northeast Indiana paying to have its name on a baseball stadium while failing to provide 24-7 ultrasound services to a rural community. And we see Community Health paying the federal government $345 million – the largest payment of its kind in history – to settle allegations they defrauded Medicare for years. I’m afraid these systems have forgotten what charity means.”

Based on information in the 2023 audited reports, Holdman argues the following:

-Ascension (St. Vincent) had enough unrestricted assets to cover 260 operational days.

-Community Health Network had enough unrestricted assets to cover 212 operational days.

-Deaconess had enough unrestricted assets to cover 369 operational days.

-Franciscan Alliance had enough unrestricted assets to cover 396 operational days.

-IU Health had enough unrestricted assets to cover 456 operational days.

-Parkview Health Systems had enough unrestricted assets to cover 341 operational days.

“As a fiscal leader at the Statehouse, I understand there is a real need to have some cash reserves in order to weather unforeseen circumstances,” Holdman added. “However, while the state government typically hovers around 40 operational days, we see most of these nonprofit systems with enough assets cover 250 days and beyond, with 250 days being the high end of the range for S&P’s ‘very strong’ rating. In my opinion, that goes beyond prudent asset management and looks more like hoarding. I expect better from these nonprofit hospitals.”

The Senate is expected to reconvene for session at the Statehouse on January 8.