News Release

ROCHESTER — It is a challenging time for healthcare, especially those in rural settings. Woodlawn’s administration team continues to meet with state leaders to urge support for rural health care in Indiana, especially Fulton County. On Wednesday, the health system was honored to host Dr. Daniel Rusyniak, Secretary of the Indiana Family and Social Service Administration, and Paul Bowling, CFO of FSSA, along with Brian Tabor, President of the Indiana Hospital Association, to share current challenged the hospital is facing.

“It was an honor to share our story and facility with FSSA leaders,” said Alan Fisher, CEO of Woodlawn Health.

Fisher explained that one of the most significant expenses for Woodlawn is the Hospital Assessment Fee –tax hospitals pay to expand Medicaid coverage for Hoosiers and support the State of Indiana. Indiana’s Healthy Indiana Plan programs are essential, but the share hospitals pay the State to operate the programs is increasing at an unsustainable rate. For 2023, Woodlawn’s HAF fees are projected to rise to $3.2 million. This is the hospital’s second-highest expenditure after personnel cost.

“While hospital expenses post-pandemic have climbed 14%, our HAF payments have increased 50%. This is not sustainable for our health system, and I am sure many other rural small hospitals like ours are struggling too, especially when those payments represent seven percent of the hospital’s total expenses,” Fisher added.

Different ideas were shared, especially concerning maternal health and funding needed to keep Woodlawn’s Maternity Oasis afloat. Woodlawn is the only Health System offering Maternity care within a 40-mile radius to the north, east, and west of Fulton County.    

“We do not want a hand-out but need help as we are committed to keeping services open to our community. We are excited to be a part of the conversation to find a solution for small health systems to thrive here in Indiana,” Fisher added.

Fisher advocated for direct financial support for hospitals before the next state budget cycle and urged the State to appropriately fund Indiana’s low Medicaid rates, which haven’t been raised in over 30 years.

“Without additional state assistance, the growing Medicaid shortfall will have negative impacts on Woodlawn in both the short and long term, and our hospital may be forced to cut services,” said Fisher.