INDIANA – Indiana Governor Mike Braun has signed House Bill 1004 into law, enacting measures to regulate and potentially lower high hospital prices within the state.
The core provision of the new law involves revoking the nonprofit status of hospitals whose prices are found to exceed the state average. The Indiana Office of Management and Budget will determine this average using data from 2023 and 2024.
Additionally, the law mandates that nonprofit hospital systems submit audited financial statements annually. Failure to comply will result in a $10,000 daily penalty.
The legislation allows hospitals time to adjust their pricing structures, with full implementation scheduled for 2029. Hospitals can regain their nonprofit status by meeting the state’s pricing requirements before the deadline.
This law represents a significant step towards addressing concerns about healthcare affordability in Indiana.
