HealthLeaders-InterStudy, a leading provider of managed care industry intelligence, finds that the current hospital building boom in Indianapolis benefits from the lack of regulation, which leaves health systems largely free from constraint by government, health insurers, and employers. According to the latest issue of the Indianapolis Market Overview, hospitals have spent $4 billion on construction in Indiana since 2000.
"A decade ago, Indianapolis-area hospitals stuck to their territories, and many counties owned a hospital that was the sole healthcare provider for their area," said Patrick Powers, HealthLeaders-InterStudy senior analyst. "The state's repeal of certificate of need requirements in 1994, combined with recent strong population growth in Hendricks, Hamilton, and other formerly rural areas, has encouraged central Indiana hospital networks to build new facilities outside their traditional patient markets."
For example, Methodist Hospital, once restricted to serving an expensive uninsured population in the downtown area, embarked on a "Beltway Strategy" in the 1990s, building facilities at exits on I-465. After this success, the health system, now called Clarian, opened two acute-care hospitals near rival facilities, competing directly with them.
After the state repealed its certificate of need, several Indiana counties, including Morgan and Hancock, attempted local moratoriums on new healthcare facilities. But the Morgan County moratorium was struck down in court, leaving county hospitals like Hendricks Regional Health, Riverview Hospital, Hancock Regional Hospital, and Morgan Hospital and Medical Center vulnerable to competition from nearby Indianapolis health systems that is now well under way.
Other news about the Indianapolis healthcare market: * The OrthoIndy physician practice opened its own inpatient facility, Indiana Orthopaedic Hospital, which will allow the group to keep a greater share of reimbursements. * The Indiana Health Information Exchange, a clinical messaging system that links area healthcare providers, now includes the four major health systems and Wishard Health Services. About Market Overviews
Market Overviews provides a detailed analysis of local healthcare markets, allowing healthcare businesses to plan their local strategies.
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