FORT WAYNE, Ind. (WOWO) – Hospitals aren’t just places for care; they’re also economic powerhouses. A new report shows Indiana hospitals generated more than $63 billion in annual economic activity last year, but looming Medicaid cuts could threaten both patient care and local economies.
The Indiana Hospital Association (IHA) reported that hospitals served approximately 640,000 inpatients and 2.6 million emergency department patients in 2024. Alongside that service, hospitals directly employed 111,520 Hoosiers and supported another 129,028 jobs statewide.
“Hospitals are one of the largest employers and purchasers in their communities,” IHA President Scott B. Tittle said in a statement. “Our record of service will always be a hospital’s most valuable contribution, but let’s not forget the jobs, community investment, and spending with local businesses that hospitals are also responsible for — all of which are now at risk.”
According to the report, Indiana hospitals spent $11.8 billion on wages in 2024. Employees then spent $12.8 billion on goods and services, ranging from groceries to mortgages, helping fuel the state’s economy.
But that stability may be in jeopardy. Earlier this year, President Donald Trump signed the One Big Beautiful Bill Act, which includes significant cuts to Medicaid funding. Analysts with the Urban Institute and Robert Wood Johnson Foundation project Indiana hospitals will lose $12.7 billion over the next decade — the seventh-highest total impact in the nation.
Currently, hospitals are reimbursed only 57 cents on the dollar for Medicaid services, which is well below the actual costs. The IHA warns deeper cuts could force hospitals to eliminate services, reduce staff, increase wait times, or even close their doors. To offset losses, Hoosiers with private insurance could face higher rates.
“Every day, the hardworking people who staff our hospitals are not only caring for patients, but also driving Indiana’s economy,” Tittle said. “Keeping hospitals strong is essential to keeping our economy strong.”
Tittle urged policymakers, insurers, and employers to work with hospitals on solutions to protect both patient care and the state’s economic health.
