(INDIANAPOLIS) - Indiana hospitals are warning that mounting financial pressures could affect patient care statewide in the coming years, according to a new analysis by health care consulting firm Kaufman Hall.
The report projects significant financial losses for hospitals over the next five years, driven by reduced federal funding and rising costs for labor, medical supplies and operations. Hospital leaders say the growing gap between expenses and reimbursement threatens staffing levels, service availability and planned capital improvements if left unaddressed.
The analysis shows hospitals continue to face sustained inflation in pharmaceuticals, equipment and workforce costs, while reimbursement growth has slowed. Industry officials describe the imbalance as a long-term challenge for health systems across Indiana.
Hospital executives are expected to outline those concerns during a virtual press conference, urging state and federal lawmakers to consider policy solutions that would stabilize hospital funding. Leaders say the financial strain affects not only hospital operations but also access to care in both rural and urban communities.
The report's findings are expected to factor into upcoming budget and health policy discussions at the Statehouse and in Washington as hospitals seek relief from escalating costs.