“The RAND 5.0 report continues to paint a distorted view of health care in our state. Using data as old as 2020, it ignores recent market negotiations and does not consider the massive financial losses that Indiana hospitals incur subsidizing insurance companies’ low payment to Hoosier doctors. Looking at the more recent picture, Indiana hospitals are experiencing historic financial losses and rapidly growing costs resulting in negative operating margins across the state. Our members continue to experience significant financial pressures that challenge their ability to provide 24/7 care for the patients and communities they serve.
RAND reports also do not take into account Indiana’s low Medicaid rates, which haven’t been raised in over 30 years and rank far below the national average at 12th lowest in the nation. Medicaid covers only 57 cents on the dollar of an Indiana hospital’s cost to treat patients, and these losses total $2.7 billion each year that must be shifted to those with private insurance. Indiana hospitals remain committed to reducing health care costs, and we look forward to partnering with policymakers on comprehensive solutions that address all the key factors.”
— Brian Tabor - President, Indiana Hospital Association
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