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

Justin D. Harris, MSHA, MBA, FACHE, Chief Executive Officer of Daviess Community Hospital (DCH), was called to testify Tuesday before the Indiana House Insurance Committee on the topic of House Bill 1271, legislation aimed at increasing transparency, fairness, and accountability in health insurance payment practices.

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.

“We strongly support House Bill 1271 because it brings needed standardization and accountability,” Harris said. “This legislation helps ensure rural hospitals can remain open, financially stable, and focused on delivering high-quality care to the people who depend on us every day.”

House Bill 1271 was authored by Rep. Julie McGuire and co-authored by Reps. Lori Goss-Reaves, Victoria Garcia Wilburn, and Chris Campbell. The bill was referred to the House Insurance Committee earlier this month.