Methodist Hospitals is warning that a change in federal funding could have a significant impact on its ability to offer services.
President and CEO Matt Doyle says Methodist, which operates hospitals in Gary and Merrillville, has a very high level of patients on Medicare and Medicaid, and Disproportionate Share Hospital funding helps bridge the gap for what those reimbursements don't cover. But now, he says, that funding faces challenges at the federal level.
"The challenge around Disproportionate Share is, if those cuts are made, then hospital systems such as Methodist all across the country and within the state of Indiana are going to be significantly negatively impacted, and that's just simply unacceptable," Doyle said.
He doesn't have any contingency plans about what specifically would be cut at Methodist, but he said the hospital system would be forced to make some "business decisions." "For us to continue to provide services and a wide spectrum of services, we have to have the financial support to do so, and if that financial support is taken away, we simply have to make choices on what we can provide," Doyle added.
Doyle said Methodist Hospitals is not in the health care business to make a profit, but it has to try to break even to continue serving the community. The Times reports that a bill from State Senator Eddie Melton (D-Gary) to provide $20 million in stopgap funding from the state failed to advance by this week's committee deadline. But State Senator Ed Charbonneau (R-Valparaiso) has agreed to work with Melton to look for funding in the state budget.
Doyle is optimistic for his organization's future.
"We've been here for a hundred years. We'll be here for the next 100 years and more. We are passionate about the service that we provide. We're certainly proud of our position in the community. We feel like we serve our communities better that anyone else can serve our communities, and we'll continue to do so," Doyle said.
