Parkview, IU Health among Indiana providers abusing nonprofit status

According to the Journal Gazette, State Senator Travis Holdman has raised concerns about the financial practices of nonprofit health care systems in Indiana, including Parkview Health and IU Health. Holdman argues that these systems are abusing their nonprofit status by amassing billions in unrestricted assets rather than reducing costs for patients. He criticized Parkview for its high prices and investments, such as paying for naming rights to a baseball stadium, while failing to provide essential services in rural areas.

Parkview defended its practices, highlighting its significant contributions to local taxes, community benefits, and uncompensated care. In 2023, it paid $89.6 million in taxes and invested $103 million in community programs, along with $475 million in uncompensated care. It also committed to reducing care costs by $1 billion over several years.

Holdman pointed out that some hospital systems, including IU Health and Parkview, have enough unrestricted assets to operate for over a year without new income. He compared this to the state’s reserve management and called it excessive, urging nonprofit hospitals to prioritize affordability and charitable purposes.

Parkview has faced past criticism for its high procedure costs, with studies showing rates nearly four times what Medicare pays. The health care system has since worked to address pricing concerns but continues to face scrutiny over its financial practices and use of assets.