RAND’s updated 5th report again places Parkview Health among most expensive providers
The latest RAND Corp. report places Parkview Health and IU Health among the top 10% of medical providers nationwide charging the highest relative prices. Parkview ranked 27th, and IU Health 32nd out of 303 systems. Both nonprofit organizations have faced criticism for their pricing, with State Senator Travis Holdman alleging their high charges contribute to excessive unrestricted asset stockpiles.
RAND’s study found Parkview charges more than three times Medicare rates for similar services, while IU Health averages 323% of Medicare rates. Community Health Systems, parent to Lutheran Health Network, ranked 205th, charging 226% on average. Critics argue these high prices burden employers and employees, pushing businesses to offset costs through lower wages and reduced growth.
In defense, Parkview Health’s David Jeans cited inaccuracies in the RAND data, pointing to an Indiana General Assembly study by Milliman, which showed Parkview’s prices below state benchmarks. Parkview also claims to have implemented strategies to reduce care costs by over $1 billion since 2020.
A related Indiana University study highlights the state’s reliance on self-insured health plans, with 66% of private-sector employees covered, compared to the national average of 54%. These plans, which often lack negotiating leverage, may contribute to higher costs.
While high costs raise concerns, quality metrics vary. Leapfrog Group awarded Parkview Health hospitals “A” grades for safety, whereas IU Health hospitals received lower marks. U.S. News & World Report ranked IU Health Medical Center as the state’s best, with Parkview Regional Medical Center fourth.
Holdman has called for nonprofits to prioritize affordability over asset accumulation, citing financial disclosures showing IU Health and Parkview with reserves to cover 15 and 11 months of operations, respectively. Meanwhile, rising healthcare costs, including premiums for employer-sponsored plans, remain a critical issue for Hoosiers and businesses alike.
