Daviess Community Hospital CEO Testifies Before Indiana House Insurance Committee on House Bill 1271

House Bill 1271 addresses several challenges faced by hospitals and patients, including retroactive claim denials, downcoding, delayed reimbursement, and limited oversight of insurer recoupment practices. Harris shared firsthand examples of how these practices disproportionately impact rural, independent hospitals and the communities they serve.

“Rural hospitals operate on extremely thin margins, and uncertainty in reimbursement makes it harder to keep essential services close to home,” Harris told committee members. “When payments are denied without explanation, automatically reduced, or clawed back years later, it puts real strain on hospitals that are already caring for a high percentage of Medicare and Medicaid patients.”

During his testimony, Harris explained that Daviess Community Hospital spends significant staff time and resources reworking and appealing claims that should be paid according to existing contracts. He noted that roughly half of the hospital’s billing team’s time is devoted to resubmissions and appeals, costing the hospital hundreds of thousands of dollars annually.

“This bill is not about special treatment,” Harris said. “It’s about treating health care like any other business relationship. If a service is provided according to contract, payment should be timely, transparent, and final. That stability allows hospitals to focus on what matters most—caring for patients.”

Harris also emphasized the broader implications for rural Indiana, where many communities rely on independent hospitals for emergency care, obstetrics, and other essential services. He stressed that predictable reimbursement is critical to maintaining access and supporting partnerships that keep care local.