A large-ranging invoice geared toward decreasing well being care prices for Hoosiers acquired combined opinions in committee on Tuesday, from provisions penalizing hospitals for top costs to curbing the usage of non-compete agreements. 

Rep. Donna Schaibley, R-Carmel, launched the measure’s elements earlier than the Home Public Well being Committee, although the panel agreed to listen to testimony this week and amend the invoice subsequent week earlier than a vote.

She stated the invoice, together with a companion piece of laws that will likely be heard on Wednesday, are the results of a scarcity of motion on the a part of well being care entities and insurers to decrease costs. 

“Indiana has a extremely concentrated market with a excessive variety of doctor teams being employed by hospital techniques,” Schaibley stated. “That is one thing that’s a lot wanted in Indiana.”

Fining costly hospitals

Hospitals whose value of service is greater than 260% of the federal Medicaid reimbursement fee can be fined in an try to decrease well being care prices throughout the board. 

“It does give attention to the big not-for-profit hospitals,” Schaibley stated. “I’d say most of them have extraordinarily giant reserves and I feel they’re able to absorbing them.”

Brian Tabor, president of the Indiana Hospital Affiliation, warned of the unintended penalties that might come from the “punitive components” of the invoice, urging legislators to work with hospitals when it got here to setting a good value.

“We consider that there’s a path ahead to attaining the nationwide common in value so long as it’s measured pretty and never distorted by among the different measures that we see on the market,” Tabor stated. 

Tabor, in his testimony, argued that portray hospital costs as above common is deceptive and that Indiana really sits nearer to the center and will get there with out authorities intervention. 

“These are very advanced establishments, very advanced negotiations. If laws constrains that, I feel it might make it very troublesome to fulfill that objective,” he stated. “But when we transfer away from this (within the Basic Meeting) towards extra of a fee – extra of longer-term oversight with accountability kind of mannequin – I feel we will get there.”

Hospitals attribute prices to exterior forces

Executives with among the state’s main well being care suppliers advised the committee that costs weren’t a results of their insurance policies – however somewhat a mixture of the pre-existing poor well being of Hoosiers, excessive staffing prices, drug costs and medical gadgets. 

“We find yourself offering payments to folks on issues that we purchase elsewhere and simply go them alongside – prescription drugs, gadgets, varied therapies – we don’t set these costs,” stated Bryan Mills, the president and CEO of Neighborhood Well being Community. “Now we have restricted leverage as nicely so I’m not right here for sympathy. I’m simply saying it’s not fairly that straightforward.”

Mike Schroyer, president of Baptist Well being Floyd in New Albany, stated his hospital operated within the purple, offering $14 million in charity or unreimbursed well being care yearly. This invoice, he stated, would value his well being care system an estimated $30 million it doesn’t have.