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Local health systems suffered tough financial losses in 2022

Saint Joseph Mishawaka Medical Center, exteriors, Indiana Exterior photos of the Mishawaka Medical Center main entrance.
Saint Joseph Mishawaka Medical Center, exteriors, Indiana Exterior photos of the Mishawaka Medical Center main entrance.

Indiana health systems experienced their worst year financially since the pandemic started — according to a new analysis by Kaufman Hall.

Indiana hospitals lost approximately $72 million in income last year. Plus, the state's profitability was lower than others in the nation. Expenses for labor, medical supplies, drugs and others rose to $3.2 billion due to inflation and other external factors.

President of St. Joseph Health System Chris Karam said this is because of two things: people going to the hospital less and increased costs in supplies, labor and medical drugs.

“I think part of that is, in fact, due to people still afraid to get the care and receive care,” he said. “This is certainly an unprecedented three years we've gone through with a pandemic that is now endemic here to stay. And hospitals and health systems are working to rebound from that. “

Karam said St. Joseph experienced a 25% increase in the cost of labor and a 17% increase in medication costs. The costs of general supplies also increased by 8%.

The unique and unfortunate side of this increase — hospitals have to absorb the costs.

This is certainly an abnormal occurrence. Karam said the state is experiencing financial levels that were unheard of before last year.

To combat this issue, the health system is doing things like online appointment scheduling and ensuring there is sustainable and correct care.

The Indiana State Legislature is currently working onlegislation to improve Indiana’s public health system.

But local hospitals, including St. Joseph Health System, are apprehensive about it. Karam said hospitals should be paid appropriately to serve their communities.

Karem said that at its core, the hospital's mission is to serve the community and anything to alleviate the costs helps.

“We've tried to make things easier on our community and on the patients that we serve to ensure that we give them the access they need to continue to receive care,” he said.

Rachel Schnelle is a Reporter/Assignment editor for WVPE. She can be reached at reschnelle@wvpe.org.
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