ANDERSON — Citing a combination of economic and industry challenges, as well as a new state law, Community Health Network will gradually restructure its workforce and organization.

While the wording of an email from a CHN representative to The Herald Bulletin doesn’t mention layoffs, the email suggests some jobs could be eliminated.

“We have made the difficult decision to restructure our workforce and make organizational changes that impact jobs,” reads the statement from Kris Kirschner, CHN’s director of communications.

CHN has not disclosed publicly when layoffs would begin, and layoff notices from CHN had not been posted on the Indiana Department of Workforce Development’s website as of Friday.

Community Health Network reportedly lost about $161 million last year in investments and operations, according to an article posted by Inside Indiana Business.

Community Hospital Anderson is part of the Community Health Network. Other CHN facilities in Madison County include family care offices in Anderson, Alexandria, Lapel, Pendleton and Elwood, CHN’s newest addition.

CHN will host a ribbon cutting ceremony May 31 at 2 p.m., according to Michele Hockwalt, marketing and communications manager for Community Hospital Anderson.

CHN also cited rising costs for labor, pharmaceuticals and other supplies and services, as well as shrinking reimbursements, as reasons for restructuring.

“This is not a decision we take lightly,” Kirschner said. “It is an unfortunate and necessary step to remain a trusted health care system fulfilling our mission of enhancing the health and well-being of the communities we serve.”

In further explaining the restructuring, CHN cited a new law signed May 4 by Gov. Eric Holcomb after legislators removed a clause in House Bill 1004 that would have fined hospitals for charging private insurance companies more than they charge Medicare.

The new law allows for data collection related to hospitals’ major expenses, speeding up the pre-authorization process for insurance claims. The law also is intended to prevent errors in billing.

Data collection will provide lawmakers with information to guide future policy decisions to lower health care costs, according to state Rep. Kyle Pierce, R-Anderson. He said organizations like Community Health Network already report such data to the state.

Responding to CHN’s mention of the new law as a reason for restructuring, Pierce expressed concern.

“You would think that the hospitals would appreciate lawmakers knowing how we can assist them in lowering costs going forward,” said Pierce, a co-author of the bill.

Not naming specific issues with the law and other factors, Pierce said shows a lack of transparency with stakeholders.

Penalties for hospitals still remain. Hospitals that do not present expense data in time will be charged a $1,000-per  day late fee, according to an Indianapolis Star article.

Hospitals such as those affiliated with CHN and Ascension St. Vincent will be barred from charging facility fees for outpatient services at off-campus sites.

Hospital officials argue such fees help offset costs for charity and Medicare/Medicaid care, according to the Star.

The Indiana Hospital Association opposed an early version of HB1004, saying that it unfairly targeted certain hospitals and did not address overcharging by insurance companies.

“We believe this unjustly targets hospitals and moves away from a holistic way of controlling overall health care costs,” association President Brian Tabor said in an April 5 press release.

“We believe there must be equal accountability for all health care stakeholders.”

In an April 27 statement, Tabor said the new law was a major win for insurance companies, instead of hospitals and patients.
© 2024 Community Newspaper Holdings, Inc.