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The following is Ryan Kitchell’s response to a research article showing that IU health charges employers and patients more than most comparable hospitals in order to maintain a higher profit:
“Pressures are increasing on hospitals to reduce costs and restrain pricing, making it more difficult to maintain operating margins.
IU Health also provides $250 million a year in uncompensated care, more than any other hospital system in the state. To cover the cost of that care, the hospital must pass on the cost to commercial insurers and those whom they cover.”
Kitchell, who was paid over $3.8 million between 2105 and 2017, didn’t explain why IU Health needs an “operating” margin that is two to three times larger than most nonprofit hospitals? He didn’t disclose whose interests are served by IU Heath’s unusually large profit margin? Rather than addressing the propriety of IU Health’s unusually large profit margin, Kitchell’s response focused on the difficulty of maintaining it.
Also, Kithell’s comments about uncompensated care are disingenuous. Of course Indiana’s largest nonprofit healthcare conglomerate provides more uncompensated healthcare than any of Indiana’s smaller hospital systems. Kitchell did not say whether or not IU Health provides a disproportionately large share of uncompensated care in Indiana? Rather, he delivered a talking point that allowed IU Health to evade and move on.
I hope IU health replaces Kitchell with someone who prioritizes patient health over corporate wealth.
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