A recent investigative report by Chris Essex for Indiana Public Media exposes a concerning trend in Indiana: non-profit hospitals are suing patients for unpaid medical bills, even as their revenue increases and charitable care stagnates. This paradox raises serious questions about the role of these institutions in the community and the financial burdens placed on patients. Henriott, an independent risk management firm specializing in employee benefits, offers solutions to mitigate these issues.
The Issues
- Declining Charity Care: Despite their non-profit status, Indiana hospitals have seen a decrease in charitable care spending from 3 cents per revenue dollar in 2012 to 1.5 cents in 2022. This decline occurred even as hospital revenue increased.
- Aggressive Lawsuits: Hospitals are increasingly resorting to lawsuits to recover unpaid medical bills, often for relatively small amounts. This practice burdens patients with legal fees and potential wage garnishment.
- Lack of Financial Assistance: Many patients are unaware of or unable to access financial assistance programs offered by hospitals. This can lead to unexpected medical debt and subsequent legal action.
- Policy Gaps: Indiana lacks state-level regulations on charity care, leaving hospitals to set their own policies, which may not always prioritize patients’ financial needs.
Henriott’s Solutions
- Self-Funded Health Plans with Dedicated Provider Networks: Henriott’s customized self-funded health plans can integrate dedicated provider networks, ensuring employees receive care from high-quality providers at negotiated lower rates. This approach aligns with our goal of lowering healthcare costs for clients while improving outcomes, ensuring long-term stability for both employers and employees.
- Pharmacy Benefit Manager (PBM) Selection: Leveraging our expertise in strategic benefit reviews, Henriott can guide employers in selecting PBMs that prioritize cost-effectiveness and transparency, thus lowering medication costs. This aligns with our commitment to using funds effectively and ensuring every dollar is used to care for employees.
- Claims Administrator Selection: Our team’s experience in benefit consulting allows us to assist employers in selecting claims administrators with a proven track record of accuracy and efficiency. This minimizes billing errors and reduces the likelihood of patients being unfairly pursued for unpaid bills, aligning with our commitment to lower costs and improve outcomes.
- Direct Primary Care Clinics: Henriott can help employers incorporate direct primary care clinics into their health plans, promoting preventive care and early intervention. This focus improves wellness outcomes and ensures long-term stability for employees’ health.
- Direct Partnerships with Facilities: Henriott can negotiate directly with healthcare facilities to secure lower rates for services and procedures, reducing healthcare costs, which is Henriott’s core goal.
- Education & Training, HR & Compliance Support: Our comprehensive education and training programs empower employers and employees to understand their benefits and rights, ensuring informed decision-making. This includes educating employees about the financial assistance options available to them through hospitals and other healthcare providers. Many patients are unaware of the financial assistance programs offered by hospitals, such as charity care, discounted care, and payment plans, and several major hospitals in Indiana offer robust financial assistance programs. These programs can significantly reduce or even eliminate medical bills for eligible patients. By educating employees about these options, we empower them to advocate for themselves and avoid unnecessary financial hardship.
The issues highlighted in the Chris Essex article paint a troubling picture of the healthcare landscape in Indiana. However, Henriott’s comprehensive approach to employee benefits offers a potential solution. By focusing on cost reduction, transparency, patient advocacy, and employee education, we help employers create health plans that are more affordable and accessible for their employees, ultimately reducing the burden of medical debt and the need for legal action.
Essex, Chris. “Charitable Care Stagnant Even as Nonprofit Hospitals Sue Hoosiers.” Indiana Public Media, 23 Aug. 2023, https://indianapublicmedia.org/news/charitable-care-stagnant-even-as-nonprofit-hospitals-sue-hoosiers.php.
For more information about Henriott Group, visit www.henriott.com.
About Henriott Group
Henriott is an independent Risk Management firm dedicated to helping clients prevent, manage, and recover from critical incidents. Working in both public and private entities through effective risk management, risk financing, commercial insurance, employee benefits, crisis management, contingency planning, and crisis response.
CONTACT
Grace Pritchett, Communications (765) 838-8610 | gpritchett@henriott.com
Zach Finn, Director of Risk Management (765) 429-5001 | zfinn@henriott.com
