Submitted
Indiana Hospital Association President Brian Tabor released the following statement on Thursday following the announcement of the state’s budget surplus for Fiscal Year 2023.
“It is disappointing that the State of Indiana has chosen to revert over a half billion dollars of the SFY 2023 Medicaid appropriation to the General Fund surplus at a time of great financial strain on hospitals.
“Operating on cumulative negative margins, Indiana hospitals are facing difficult decisions about which services they can continue to provide, and many across the state have announced cuts and closures. The increasing gap between rising expenses and reduced reimbursement rates from government Medicare and Medicaid payments has proven unsustainable.
“The Indiana General Assembly missed the mark this session by targeting a certain group of hospitals with punitive legislation instead of addressing the biggest issue plaguing health care affordability and access – Indiana’s historically low Medicaid base rates that have not been increased in over 30 years. Currently, there is a $2.7 billion shortfall in unpaid Medicaid costs statewide which not only hurts hospitals, but harms consumers, who must pay increasing premiums to cover this cost-shifting gap.
“Indiana hospitals urge the State to provide Medicaid relief before the next budget cycle. Without immediate assistance, the growing Medicaid shortfall will only exacerbate the closure of health care facilities and services across the state.”
About Indiana Hospital Association
The Indiana Hospital Association serves as the professional trade association for more than 170 acute care, critical access, behavioral health, and other specialized hospitals in Indiana. IHA advocates on behalf of its members in Indiana’s General Assembly, U.S. Congress, and with multiple regulatory agencies at the state and federal levels. Dedicated to improving quality, patient safety, and Hoosiers’ health status, IHA holds numerous grants and facilitates collaboration among hospitals to improve outcomes. IHA also provides members with the data analytics that they need to ensure access to quality, cost-effective health care services across the state of Indiana. To learn more about IHA, visit IHAconnect.org.