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The Hancock Regional Health development seems to be something of value for the community. However, the one question I have is: Who is paying for this development? In the lattest RAND Hospital Transparency Study Hancock Regional’s commercial employer prices in 2022 were just over 3.5 times what Medicare would have paid for the same hospital facility and hospital-based professional services. Indiana’s average was 3.0 times Medicare and the national average was just over 2.5 times Medicare. It appears that local employers and employees are paying a high price for the hospital to become a real estate developer.
I’ve concluded that’s the status quo in this country. The entire industry costs way more than it should because of big pharma and insurance. Until we change those issues people we be paying for it.
I applaud Hancock Health’s efforts at Gateway. They are trying to drive quality growth to Hancock County, not just any growth. That quality growth will, in turn, allow them to gain economies of scale as the number of employers and new residents move into the area. As a small health care provider they simply do not currently have the economies of scale that the mega healthcare systems in our state have. Good for them for growing their local community in a quality way that also provides long-term sustainability for community-based locally-governed health care instead of simply waiting around to be gobbled up by an out-of-county mega healthcare system that will not have the local community’s interest in focus.