COLUMBUS — An Indiana hospital is making changes to its services due to financial strains.
This month, President Donald Trump signed the "One Big Beautiful Bill Act" into law, which contains cuts to Medicaid.
Some Indiana hospitals are already struggling to maintain.
Delayed payments and an increase in insurance companies denying claims are financially impacting Columbus Regional Health and other hospitals across the state. To survive financially, Steve Baker, President and CEO of Columbus Regional Health, said the hospital has had to make cuts to services.
"In patient rehab, outpatient orthopedics and sports medicine," said Steve Baker.
Baker said in the long run, those cuts will help keep the hospital running.
"We are struggling like most organizations in North America. Hospitals, we are trying to find ways to make sure we are financially viable going into the future," said Baker.
One of the biggest challenges is reimbursement from commercial and government payers. With a rise in claim denials, Baker said it delays hospitals getting paid.
"We have to refile the claim, multiple times, additional documentation clarifying; it's just a burden to the health organization to get those funds," he said.
According to the Indiana Hospital Association, the majority of Indiana residents with Medicaid are children.
Hospitals only get $0.57 from Medicaid, and the rest is left to those with private insurance to cover the cost.
IHA is concerned about the future of many Indiana hospitals, including those that serve rural communities.
IHA President Scott Tittle said, “Over the next decade, Indiana hospitals are projected to see $12.7 billion in cuts, even lower medicaid reimbursement, and a sharp increase in uncompensated care. This will unfortunately lead to hospitals cutting services that patients depend on, increased wait times in emergency departments, potential layoffs, or closing facilities altogether."
IHA said currently, 27% of the state's rural hospitals are operating at a loss.
"While we appreciate Congress enacting the rural fund to help offset future medicaid cuts, it won't be enough, and there is no additional assistance following the end of the 'One Big Beautiful Bill Act's' five-year period," said Tittle.
"The jury is still out a little bit there," adds Baker.
IHA said despite financial challenges, Indiana hospitals remain committed to working with federal and state officials to serve all Hoosier patients.
