One Health System’s Growth: Benefit or Burden For Patients?
In the past two decades, one Indiana hospital chain, Parkview Health, has grown from a small regional hospital system into one of Indiana’s wealthiest health care providers. But as a story from The Guardian highlights, this growth has not been without controversy, particularly when it comes to how it affects patients and health care costs.
In the early 2000’s, Parkview struggled to compete with other hospitals. Executives set out on an aggressive expansion, acquiring numerous doctors’ offices, outpatient clinics and medical facilities, some of which were reclassified to allow Parkview to charge more for services. These acquisitions weren’t limited to Indiana; they reached across state lines into Ohio, leading to sharp price increases for medical services in those areas.
As the hospital system grew, it gained power, allowing it to negotiate higher rates with insurance companies. By 2019, Parkview charged nearly three times what Medicare reimbursed for the same services, placing the hospital among the most expensive in the nation. Even when prices temporarily dropped due to public pressure, they soon rebounded.
Inside Parkview, employees felt the push to focus on profits, with doctors ranked by how much revenue they brought in. “The focus was never patient care, the focus was on productivity,” said Dr. Javier Sevilla-Martir, a family physician who voiced his concerns about the culture shift to The Guardian. Staff were also encouraged to bill for everything they could, down to the smallest supplies. This drive for profits fueled a $2.9 million settlement with the state attorney general over improper billing allegations, although Parkview denied wrongdoing.
As health care evolves, we need to focus on what truly matters – providing high-quality, accessible care for all. The story of Parkview Health is a reminder that hospitals must not lose sight of the patients they are meant to serve.
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