FORT WAYNE, Ind. — A second major hospital system in the state of Indiana has agreed to rein in the prices they charge.
Parkview Health has joined IU Health in attempting to lower costs to more closely mirror
national standards. Parkview Health announced their price reductions, one billion in savings, in December of 2021, according to Laura McCaffrey with the Indiana Hospital Association.
Matt Bell, with Hoosiers for Affordable Healthcare, made the announcement. He told CBS4’s Debby Knox that his only disappointment is that more hospital systems haven’t gotten on board.
Studies by Harvard University, University of California Berkeley, the Rand Corporation and the Healthcare Cost Insitute have all reported prices at Indiana’s healthcare systems rank in the top 10 of systems in the country.
“Our not-for-profit hospitals have some of the largest operating margins in the country,” Bell said. “We have hospitals that are 12, 15, 17 percent margins year in and year out, who are sitting on billions of dollars in reserves.”
A little over a year ago, Senate Pro Tem Rodric Bray and Speaker of the Indiana House Todd Huston sent letters to the leaders of the 20 largest health systems in the state, challenging them to get the prices they charge in line with national averages by 2025.
The president of the Indiana Hospital Association, Brian Tabor, has stated in interviews that the studies noted are dated and flawed. He maintains Indiana hospital systems have already put into place cost-cutting measures.
“If you look at how Indiana ranks from a total cost of care perspective, the premiums businesses pay that incorporate the total health spending, Indiana is really in the middle of the country, right around the national average,” Tabor said.