IU Health pondering new hospital in Bloomington
Indiana University Health officials are working on plans for building a new hospital in Bloomington to replace the system's aging facility.
Indiana University Health officials are working on plans for building a new hospital in Bloomington to replace the system's aging facility.
IU Health wants to consolidate its University and Methodist hospitals into one downtown location, a plan that would see one or both facilities close or be converted to another use.
Indianapolis-based IU Health saw big increases in outpatient surgeries and imaging tests in the three months ended Sept. 30, reversing year-long declines. Hospitals nationally are also posting improved performances.
In the past two years, IU Health has laid off 935 people, halted construction of a major bed tower, sold off health clinics and decided to close its proton-therapy center. But there are three more years of changes to come, said CFO Ryan Kitchell.
IU Health Plans, the insurance arm of the Indianapolis-based hospital system, is limiting itself to three middle-size markets next year—Bloomington, Lafayette and Muncie—even though the bulk of its facilities is in the metro area.
The Indiana Blood Center is set to lose more than one-third of its revenue early next year, as three hospital systems bolt for cheaper prices offered by the American Red Cross.
Bloomington’s Monroe Hospital, which has had a close relationship with Indianapolis-based St. Vincent Health, filed for bankruptcy reorganization on Friday and plans to sell its business to a Canadian operator.
The site of the former Wishard Memorial Hospital could become home to a new combined downtown hospital for Indiana University Health.
Advances in non-invasive surgeries, changes in health care financing and now increasingly price-sensitive patients accelerate what has been a 40-year decline in the number of patients spending the night in hospitals.
Indiana University Health wants to merge two of its big downtown hospitals—University and Methodist—into one location, meaning either one or both would close or be converted to another use.
Getting everyone into the same room prior to surgeries is cutting costs and improving health.
Before local hospitals slashed staff and expenses last year, they had been boosting the pay packages of their top executives faster than hospitals around the country. Seven of every 10 senior executives at the major hospital systems in Indianapolis saw their total compensation rise more than 10 percent from 2010 to 2012.
Indianapolis hospitals have begun to offer joint replacement surgeries to employers and insurers using “bundled prices.” That means, instead of billing piecemeal for each individual service and supply, the hospitals wrap everything needed from just before to just after surgery into a package deal.
Indiana University Health was chosen by a hospital system in Wisconsin to provide heart, lung, esophagus and aorta surgeries there after the surgeons the hospital system had been using became employed by a competing provider.
Indiana University Health’s business deteriorated last year in nearly every area. But price hikes and a surge in outpatient visits to Indianapolis-area facilities mostly offset those problems.
The new two-year agreement gives UnitedHealthcare discounted rates retroactive to Jan. 1. Such discounts, which insurers negotiate with hospital systems, reduce prices 30 percent or more.
In spite of offers to strike a short-term extension, UnitedHealthcare and Indiana University Health are still hung up in contract negotiations on one key point: Minnesota-based UnitedHealthcare wants to create a multi-tiered network of providers and services that would offer the lowest co-pays and deductibles for favored hospital systems—which IU Health is not.
Jim Terwilliger had led IU Health’s two flagship hospitals since July 2012, when longtime executive Sam Odle retired. The CEO of Riley Hospital for Children will replace him temporarily.
IU Health has decided to still give patients the same “in network” co-pays and deductibles that UnitedHealthcare had negotiated under the expiring contracts, keeping patients’ costs the same until a new deal is reached.
Indiana University Health, already the state’s largest hospital system, is now ramping up to compete against Anthem, UnitedHealthcare and other health insurers.