News Release

Alan Fisher

ROCHESTER — Alan Fisher, chief executive officer of Woodlawn Hospital, Rochester, recently was asked to testify to the Indiana Senate Health Committee about a financial crisis facing rural hospitals like Woodlawn.

“There is a looming crisis that is going unnoticed,” Fisher told the committee. “Woodlawn’s operational loss for 2021 was $755,000, but the financial headwinds for us and other hospitals picked up speed last year, leaving us with an estimated loss for 2022 of $6.3 million. Our goal for 2023 is to lose just $1.5 million, even after implementation of more than $3 million in cost reductions.”

Fisher blamed the hospital assessment fee, often referred to by its acronym, “HAF,” in large part for the losses.

“A large portion of this loss is attributed to the $3.2 million that will be owed to the state through the hospital assessment fee,” he said.

“It’s great that more Hoosiers gained health coverage through Medicaid and the Healthy Indiana Plan during the pandemic,” Fisher added, “however, hospitals have increasingly had to pick up the bill.

“Indiana hospitals will pay a total of $1.5 billion in 2023 into the hospital assessment fee to fund these programs, and Woodlawn’s portion is growing quickly, rising from just over $2 million in 2020 to $3.2 million this year, representing a 53% increase, which is unsustainable.”

On Feb. 1, The Shopping Guide News of Fulton County published a commentary by Fisher that called on Indiana lawmakers to pass legislation that he said would help rural hospitals such as Woodlawn to remain open.

In that vein, Fisher told the committee: “Understanding the concept of matching funds, I would propose providing targeted HAF relief, increasing the state’s Medicaid base rates, eliminating or reducing the 28.5% that goes to the state or redesigning the HAF program in a wholesale way in the future that recognizes the circumstances of rural hospitals and the unique challenges we face.”

Fisher described what the future of rural communities could look like if the fees are not lowered.

“When rural hospitals close, it is the community that will suffer,” Fisher testified. “Hoosiers will put off getting care and their health and quality of life will deteriorate. Maternity deserts will become more widespread around this great state as well. Not to mention the economic impact to the state when industries want to relocate and pass by viable options due to not having a hospital. Rural hospital closings are a crisis for sure looming in Indiana. Action needs to happen now before it’s too late. Let’s work to save our critical access hospitals by significantly reducing the hospital assessment fees sooner rather than later.”

The General Assembly concludes at the end of April.

For more information, questions or concerns, contact area state lawmakers.

Republican Sen. Stacey Donato, District 18, may be reached by telephone at (800) 382-9467, email at [email protected], and through her website at www.indianasenaterepublicans.com/donato.

Republican Rep. Jack Jordan, District 17, may be reached by telephone at (800) 382-9841 and through his website at www.indianahouserepublicans.com/members/general/jack-jordan/?back=members.