Becker's Hospital Review

30 POPULATION HEALTH 30 CEO/STRATEGY 'Anywhere but Indiana' — Why employers are avoiding hospitals in the Hoosier State By Morgan Haefner I ndiana's high hospital prices may be de- terring new businesses from coming to the state, according to the Indy Star. Gloria Sachdev, PharmD, the president and CEO of Employers' Forum of Indiana, a co- alition aimed at improving the value pay- ers and patients receive for their healthcare expenditures, heard about how Indiana's hospital prices are affecting outside employ- ers while speaking with executives from Michigan's auto industry. During the discussion, one executive said, "We have plants all over the country, and whenev- er we're talking about opening a new one, do you know what I say? I say, 'ABI,'" according to the Indy Star. e executive elaborated: "Any- where but Indiana. On average we pay $2,200 for every worker's emergency room visit in Indiana. In Michigan it's $800. e difference there is the profit margin on one car." For Ms. Sachdev, the executive's comment confirmed what other employers have said about Indiana's healthcare costs. A recent study led by Chapin White, PhD, adjunct se- nior policy researcher and faculty member at Frederick S. Pardee Rand Graduate School in Santa Monica, Calif., found what employers pay for healthcare in Indiana is much high- er than what Medicare pays. For example, employers paid 277 percent of what Medi- care paid for healthcare in 2015, on aver- age. Just two years later, that percentage rose to 295 percent. While Hoosiers' cost of living is relatively low compared to other states, several factors may contribute to Indiana's high health- care costs, according to the Indy Star. For instance, Indiana oen scores poorly on health metrics like smoking rates and obe- sity, which can lead to higher healthcare use and drive up costs. Another reason may be that Indiana residents and employers prefer open provider networks as opposed to nar- row networks that can negotiate lower hos- pital prices. Still, others, like Ms. Sachdev, argue hospital prices are to blame for the state's high healthcare costs. n Central Maine Healthcare leader suddenly resigns, cites worries over system's direction By Morgan Haefner L ewiston-based Central Maine Healthcare is looking for its fifth new board member in recent months after a longtime leader of the system's Bridgton (Maine) Hospital resigned abruptly, according to the Sun Journal. Philip Libby, a 25-year veteran of Bridgton's board who joined the entire system's board about a year ago, suddenly resigned April 17. Mr. Libby said his resignation, which was effective immediate- ly, came after he grew concerned about his "personal liability … as a director. I was not and have not been happy with the direction that the organization has been taking." Mr. Libby's resignation comes amid several months of turmoil at CMHC. In summer 2018, members of the medical staff at the sys- tem's three hospitals voted no confidence in CEO Jeff Brickman. A day after CMHC's board voted to retain Mr. Brickman as CEO, the president of Bridgton and Rumford (Maine) Hospital resigned. CMHC said in August 2018 that 27 percent of its physicians had left over the past year due to disagreements with leadership. In response to Mr. Libby's resignation, CMHC leaders said they ap- preciated his service to the board, but did not understand why he resigned. Peter Wright, the new president of Bridgton and Rumford hospitals, told the Sun Journal Mr. Libby "hasn't attended any meet- ing I've been at nor engaged with me outside of a brief interaction ... I think it's fair to say he certainly hasn't given me a chance. I don't think he's given the system a chance as of recently." n Amended bill calls for firing current U of Maryland Medical System board members By Ayla Ellison L egislation to completely overhaul Balti- more-based University of Maryland Medical System's board is headed to the House floor, according to local TV station WBAL. The bill was first introduced in March after reports that nine of UMMS' 30 board members benefit- ted from business deals with the health system, including a $500,000 book deal with Baltimore Mayor Catherine Pugh. As amended, the bill requires all current board members to be terminated from their positions. "They will be terminated in two different batches, so that we separate some in June and some in October," Maryland House Health and Govern- ment Operations Committee Chairwoman Shane Pendergrass told WBAL. The bill would also limit the number of board mem- bers to 25 and prohibit members from using their position for private gain, according to the report. n

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