Indianapolis, February 11, 2026
Indiana’s five largest nonprofit hospital systems have successfully met the state’s pricing benchmark for the second consecutive year, as revealed in a recent report by the Indiana Department of Insurance. The analysis, conducted by Milliman, evaluated their commercial prices against a benchmark of 285% of Medicare rates. While the Indiana Hospital Association commended these hospitals for their efforts to make healthcare more affordable, the Employers’ Forum of Indiana expressed concerns regarding the pricing methodology used, particularly the inclusion of physician fees alongside facility costs.
Indianapolis, IN – Nonprofit Indiana Hospital Systems Meet Pricing Benchmark in 2024
Indiana’s five largest nonprofit hospital systems have successfully met the state’s pricing benchmark for the second consecutive year, according to a recent report by the Indiana Department of Insurance. The analysis, conducted by actuarial consultant Milliman, evaluated the commercial prices of Ascension Health, Community Health Network, Franciscan Health, Indiana University Health, and Parkview Health, excluding critical access hospitals. The benchmark, established by House Enrolled Act 1004 in 2023, compares hospital prices to 285% of Medicare reimbursement rates. In 2024, all five systems reported prices below this threshold:
- Ascension Health: 254% of Medicare rates
- Community Health Network: 236% of Medicare rates
- Franciscan Health: 271% of Medicare rates
- Indiana University Health: 237% of Medicare rates
- Parkview Health: 262% of Medicare rates
The Indiana Hospital Association praised these results, highlighting a 33-percentage-point reduction from the benchmark. Scott B. Tittle, president of the association, emphasized the hospitals’ efforts to lower prices amid challenging financial conditions. He also urged insurers to pass these savings on to consumers.
Concerns from Employers’ Forum of Indiana
However, the Employers’ Forum of Indiana raised concerns about the methodology used in the report. They argued that including hospital-owned medical groups’ professional fees significantly lowers reported prices, potentially misleading consumers about actual facility costs. The forum suggested that physician fees should be reported separately from hospital facility fees to provide clearer information.
Affordability Trends in Healthcare Costs
The 2024 analysis also revealed a decrease in prices compared to 2023, indicating a continued trend toward more affordable healthcare services in the state. This follows legislative actions aimed at reducing healthcare costs, including House Enrolled Act 1004, which requires nonprofit hospitals to align their prices with statewide averages by 2029 or risk losing their nonprofit status.
Efforts Towards Better Healthcare Accessibility
These developments reflect ongoing efforts by Indiana lawmakers and healthcare providers to make medical services more accessible and affordable for residents. The positive trends in pricing indicate a commitment from Indiana’s hospitals to take actionable steps toward financial responsibility and patient care.
Key Features of the 2024 Pricing Analysis
| Hospital System | Price as % of Medicare Rates |
|---|---|
| Ascension Health | 254% |
| Community Health Network | 236% |
| Franciscan Health | 271% |
| Indiana University Health | 237% |
| Parkview Health | 262% |
Conclusion
Indiana’s hospital systems have made significant strides in meeting pricing benchmarks, demonstrating a commitment to making healthcare services more affordable for residents. As these organizations continue their efforts to align pricing with fair standards, it remains crucial for consumers to stay informed about healthcare costs and advocate for transparency. Supporting local healthcare initiatives and policies that promote economic growth can lead to a healthier, more prosperous Indiana.
Frequently Asked Questions (FAQ)
What is the pricing benchmark established by House Enrolled Act 1004?
The benchmark compares hospital prices to 285% of Medicare reimbursement rates, aiming to control healthcare costs in Indiana.
Which hospital systems were evaluated in the 2024 analysis?
The analysis evaluated Ascension Health, Community Health Network, Franciscan Health, Indiana University Health, and Parkview Health, excluding critical access hospitals.
What concerns did the Employers’ Forum of Indiana raise about the report?
The forum expressed concerns that including hospital-owned medical groups’ professional fees significantly lowers reported prices, potentially misleading consumers about actual facility costs. They suggested that physician fees should be reported separately from hospital facility fees to provide clearer information.
What legislative actions have been taken to address healthcare costs in Indiana?
House Enrolled Act 1004 requires nonprofit hospitals to align their prices with statewide averages by 2029 or risk losing their nonprofit status. This legislation aims to make healthcare services more affordable for Indiana residents.
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Author: STAFF HERE INDIANAPOLIS WRITER
The INDIANAPOLIS STAFF WRITER represents the experienced team at HEREIndianapolis.com, your go-to source for actionable local news and information in Indianapolis, Marion County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Indianapolis 500, Indy Jazz Fest, and the Indiana State Fair. Our coverage extends to key organizations like the Indy Chamber and Visit Indy, plus leading businesses in motorsports and healthcare that power the local economy such as Indianapolis Motor Speedway and IU Health. As part of the broader HERE network, we provide comprehensive, credible insights into Indiana's dynamic landscape.
