Indiana hospitals face significant financial challenges, survey says

Indiana hospitals continue to face significant challenges, according to the most recent data collected by the Indiana Hospital Association.

The association's survey of Indiana hospitals highlights an unprecedented workforce crisis, the rising costs of drugs, labor, and equipment, in addition to lingering supply shortages, according to an Oct. 10 news release shared with Becker's.

Key findings of the report since the first quarter of 2021: 

• One-fifth of Indiana hospitals lost 20 percent or more of their days cash on hand. Seven Indiana-based health systems that were part of the survey reported total losses of about $3 billion. 
• About 70 percent of hospitals have seen travel nurse expenses increase by more than 20 percent. 
• Over half of hospitals have increased salaries and benefits by 15 percent or more, while another third have reported labor costs rising nearly 30 percent over the same period. 
• 75 percent of hospitals in the state have paid more than 15 percent more for critical medical supplies like gloves and other personal protective equipment. 
• Fifty-seven percent of hospitals reported that their pharmaceutical drug supply spending increased by at least 10 percent. 

Indiana Hospital Association president Brian Tabor said financial impacts are hitting while hospitals are rebuilding from the peak of the pandemic, which stretched resources significantly.

"These challenges are incredibly daunting for our healthcare system, our patients, and our communities. The perfect storm is brewing, and we must make sure hospitals and caregivers have the resources they need to provide access to the high-quality healthcare Hoosiers rely on 24 hours a day, seven days a week," Mr. Tabor said. 

Indiana has the highest risk of hospital closures among its surrounding states, with 38 percent of the rural hospitals in the state at immediate risk of closing due to continuing financial losses and lack of financial reserves to sustain operations, according to the most recent data from the Center for Healthcare Quality and Payment Reform.