CQC Nonprofit Hospital Scorecard: Indiana Nonprofit Hospitals Earn a #HospitalFail

By Consumers for Quality Care, on May 10, 2022

FOR IMMEDIATE RELEASE
May 10, 2022
Contact: press@consumers4qualitycare.org

CQC Nonprofit Hospital Scorecard: Indiana Nonprofit Hospitals Earn a #HospitalFail

WASHINGTON – Despite being tax-exempt, nonprofit hospitals around the country are engaging in practices that put profits over patients. Recent findings from reports from the Rand Corporation (RAND), PatientRightsAdvocate.org, and Lown Institute reveal Indiana nonprofit hospital practices that are at odds with what the public expects from charitable hospitals, such as high prices and a lack of price transparency.

A statement from Consumers for Quality Care (CQC) reads: “In Indiana, nonprofit hospitals must uphold their end of the bargain when it comes to serving their communities. From charging outrageous prices to not complying with federal price transparency regulations, many of the state’s hospitals are not doing everything they can to help patients in need. We urge these nonprofits to put people before profits and work to better serve all Hoosiers.”

Nonprofit Hospital Score Card: Indiana

Hospital Prices

According to RAND analysis, Indiana ranks seventh highest in the United States for hospital prices.⁽¹⁾

Costs

Employers and insurers in the state pay over 300% more than Medicare prices to the state’s hospitals, which is the fourth-highest cost relative to Medicare in the country.⁽²⁾

Price Transparency

A survey of 1,000 hospitals nationwide found that 25 of the 32 Indiana hospitals that were included, were not compliant with the federal hospital price transparency rules that require hospitals to post all prices online in an easily accessible format.⁽³⁾

Profits

In 2020, Indiana University Health (IU Health) – the largest hospital system in the state – reported $1.2 billion in profits.⁽⁴⁾Despite its nonprofit status, a RAND study found that IU Health charges the highest hospital prices in central Indiana and the second-highest prices statewide.⁽⁵⁾

Charity Care

The Lown Institute Hospitals Index found that IU Health was one of the 25 nonprofit hospital systems with the largest fair share deficits in the nation, meaning it spent $169 million less on charity care and community investments than the value of their tax exemption.⁽⁶⁾

GRADE: #HospitalFail

1 RAND Corporation, “RAND Hospital Price Transparency Project,” May 2022, pg. 20, https://employersforumindiana.org/media/resources/Rand-4-Hospital-Price-Transparency-Study-Results-Chris-Whaley-05-05-2022.pdf
2 RAND Corporation, “RAND Hospital Price Transparency Project,” May 2022, pg. 20, https://employersforumindiana.org/media/resources/Rand-4-Hospital-Price-Transparency-Study-Results-Chris-Whaley-05-05-2022.pdf
3 PatientRightsAdvocate.org, “Semi-Annual Hospital Price Transparency Compliance Report,” February 2022, pp. 27-29, https://www.patientrightsadvocate.org/semi-annual-compliance-report-2022
4 News and Tribune, “‘UNSUSTAINABLE’: State lawmakers push health care industry to lower its prices,” April 9, 2022, https://www.newsandtribune.com/indiana/news/unsustainable-state-lawmakers-push-health-care-industry-to-lower-its-prices/article_2b865cc9-f1d2-5659-b4c2-d049f8ff5ee8.html
5 Associated Press, “Indiana’s largest hospital system announces price freeze,” December 17, 2021, https://apnews.com/article/business-health-indiana-indianapolis-indiana-university-0e8e783447d9840db90eab5ecb760eff
6 Lown Institute, “Lown Institute Hospitals Index,” April 2022, https://lownhospitalsindex.org/2022-fair-share-spending/

Visit CQC’s Nonprofit Hospital Scorecards here.

ABOUT

Consumers for Quality Care (CQC) is a coalition of advocates and former policymakers working to provide a voice for patients in the health care debate as they demand better care. CQC is led by a board of directors that includes the Honorable Donna Christensen, physician and former Member of Congress; Jim Manley, former senior advisor to Senators Edward Kennedy and Harry Reid; Jason Resendez, community advocate and health care strategist; and Mary L. Smith, former head of Indian Health Service.