INDIANAPOLIS — The Indiana Hospital Association has called on local and federal lawmakers to help address the “mounting pressure” that hospitals across the Hoosier state continue to experience amid Medicaid cuts and other systemic issues.
According to an analysis that was completed by Kaufman Hall, a company that specializes in providing healthcare management consulting and insights, Indiana hospitals continue to face obstacles such as a reduction in Medicaid reimbursement rates, operating on “razor-thin” margins, and navigating the growing costs of medical services and products outpacing projected revenues.
The report detailed how hospitals in Indiana are functioning with an operating margin of just 1.9% in 2025, which was below the national median of 2.6% during the same time period. At the same time, Indiana hospitals witnessed a 5.5% reduction in operating income, coming out to an estimated $50 million…