Indiana could save $2B with lower hospital prices, analysis says — but hospitals disagree

An analysis by the Employers Forum of Indiana says the state could save up to $2 billion if some hospitals lowered their prices. However, some hospital leaders say the group's assessment is inaccurate, Indiana Public Media reported April 3.

Nonprofit, non-critical access hospitals raked in 76 percent of commercial patient revenue in the state, the analysis said. Gloria Sachdev, president and CEO of the Employers Forum of Indiana, said capping those hospitals' prices could contribute to massive savings.

If Indiana's five largest health systems lowered their prices to meet the national average — which is defined as 260 percent of what Medicare pays, the state could see cost savings, the analysis said.

But that figure could have "devastating impacts" on Indiana hospitals, Brian Tabor, president of the Indiana Hospital Association, told Indiana Public Media. He said using Medicare reimbursement as a benchmark does not paint an accurate picture of the state's hospital prices.

"If we talk about all of these other pieces, Medicaid [reimbursement], physician rates … maybe we can get to a place that is a more holistic solution," Mr. Tabor said in the report. "But it's not going to come from a pounding on hospitals."

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars