Indy Standard

The Indiana House has approved legislation introduced by State Representative Julie McGuire aimed at enhancing transparency and accountability in the ownership of health care providers. The bill seeks to prioritize patient care over profit.

A study conducted by the Petris Center on Health Care Markets and Consumer Welfare at the University of California, Berkeley, revealed that Indiana experienced a nearly 50% increase in health care costs from 2011 to 2020. This rise is attributed to the high concentration of hospital, physician, and insurance markets in the state. In comparison, neighboring states Illinois, Michigan, and Ohio saw an average increase of 35%.

State Rep. McGuire emphasized the need for this legislation by stating: "There's abundant evidence showing that when health care providers consolidate in a market or private equity groups take ownership of them, prices increase and essential services decline." She added that patients should trust that their health care decisions are made with their best interests in mind rather than financial motives.

House Bill 1666 mandates hospitals, corporately owned physician groups, and insurers to disclose ownership details to specific state agencies. Additionally, it proposes establishing a new board with authority to approve mergers and acquisitions involving health care entities.

McGuire highlighted the importance of clear ownership knowledge: "Ownership disclosures could make it easier to spot a brewing health care monopoly or concentration in a specific market," she said. She further explained that understanding ownership structures can help identify potential conflicts of interest and prevent unethical practices such as fraud or overbilling.

The bill will now proceed to the Senate for further consideration. Those interested can watch sessions and committee meetings live or view legislation at iga.in.gov.