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Our Path Forward

At Reid Health, our mission to lead our communities to well-being, one person at a time, is always top of mind. As a core aspect of this mission, we advocate for our patients’ continued access to high-quality care from the doctors they know and trust, and we are taking necessary steps to ensure the health system is best positioned to continue providing exceptional care for decades to come.

What's Happening

There is nothing more important to us than ensuring our communities have access to the care they need.

The pandemic and its aftermath accelerated challenges for healthcare providers, and Reid Health is no exception. Rising labor and supply costs, persistent inflation, clinician shortages, decreasing reimbursement and shifting demand for services delivered in new and different ways are fundamentally changing healthcare.


increase in overall hospital expenses between 2019 and 2022

More than


of hospitals ended 2022 operating at a financial loss. That trend has continued throughout 2023.

In this new reality, we, like many not-for-profit healthcare organizations across the country, must evolve to address our current financial challenges, become more efficient and capitalize on opportunities to provide better access and experiences for patients, while making work easier for our teams.

Indiana health insurers’ profits for fully insured health plans increased 220% from 2015-2020.

Source: Kaufman Strategic Advisors

More than half of hospitals in Indiana had negative margins in 2022, including Reid Health.

Source: Kaufman Strategic Advisors

Inflation is at record highs and is now blowing through healthcare. The once-in-a-century pandemic thrust the healthcare industry into the teeth of the storm.

Source: McKinsey & Company

To carefully and smartly step through the changes necessary to ensure our vibrant future, Reid Health has begun implementing a thoughtful performance improvement plan.

This plan looks at every area of our operation, including:

Workforce Composition

Increasing productivity, assessing management structure and oversight

Non-Labor Expenses

Maximizing purchasing power, improving procurement and supply processes

Billing Processes

Improving workflows and maximizing the use of technology

Payer Contracting

Updating payer contracts and utilizing value-based care opportunities

Physician Collaboration

Increasing provider collaboration and teamwork

Care Coordination

Improving our communication and processes to enhance a seamless patient experience

Services Offerings

Improving the offerings our patients need

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Our Commitment

As we tackle the challenges before us with determination, we have recommitted ourselves to:

  • Providing accessible, quality healthcare for our families, friends and neighbors.
  • Continuing to be an employer of choice in our region and focus on leadership development.
  • Remaining an independently operated health system that is financially stable for decades to come.

Frequently Asked Questions (FAQ)

I heard Reid Health is working on a performance improvement plan. Does that mean any changes for patients?

Our patients always have been and will remain our top priority. They are why we exist. The work we are doing is designed to improve our ability to provide access and quality care to everyone we serve.

Why is Reid Health doing this now?

The pandemic and its aftermath accelerated challenges for healthcare providers, and Reid Health is no exception. Rising labor and supply costs, persistent inflation, clinician shortages, decreasing reimbursement and shifting demand for services delivered in new and different ways are fundamentally changing healthcare.

Will services at Reid Health hospitals change?

This work will enhance how we provide care. We want to ensure we are offering the services our patients want today in the settings they prefer. As we better optimize our workflows, processes and leverage the use of technology, we will be able to continue to provide advanced, high-quality healthcare right here at home.

How will Reid Health change?

Though we anticipate changes in our processes and upgrades in our performance, we believe any changes we make will only enhance the care we provide to our patients.

Is Reid Health financially stable?

Yes. We are proactively addressing challenges now to best position Reid Health to be the community’s healthcare provider of choice for decades to come.

What sort of changes will Reid Health make to strengthen its financial outlook?

Like any organization looking smartly toward the future, Reid Health has embarked on a thoughtful, deliberate, and informed process to improve our financial position and continue our work of ensuring a vibrant future. Some of these plans include improving our banking and investment practices, renegotiating our payer contracts, looking at how best to optimize our workflows and getting better prices on high-priced drugs and other supplies.

Is Reid Health changing their staffing levels or reducing the workforce?

Our staffing levels at the bedside have been, and will remain, consistent with national nursing and provider best practices.

To ensure we are maximizing our talent, we have undergone a management restructuring, which unfortunately meant we had to make the difficult decision to reduce the number of leaders in our organization. As we move forward, we will continue to make smart decisions to ensure our organization is the right size for our future and are committed to proactive and transparent communication.

How will this plan improve the health system’s performance?

Much of the improvement work we are doing involves streamlining processes, improving workflows and leveraging our available technology. At the same time, we are working with partners to ensure our team has the resources they need to grow and thrive with Reid Health. We know our employees are the key to our success, and we are committed to providing the support and benefits they need.

Why is Reid Health moving forward with the build of a new facility in Connersville?

Our mission is to serve our community and deliver the local, high-quality care they need. We acquired the Connersville facility in 2019, prior to the pandemic, and when our financial position was different. Though we are now in a challenging moment, we are committed to providing the Fayette County community with the high-quality care we promised. The former Fayette Regional facility is not functional, so we will be building a new facility with funds previously earmarked for this project.

Will Reid Health be selling or closing other facilities?

We have no plans to close or repurpose any other facilities. Our mission is to provide care for the people in our community who need it. Keeping our mission as our primary focus means that we will remain committed to making smart choices now and in the future.

Why is Reid Health working on new agreements?

Renegotiating contracts with insurance payers is nothing new. However, the healthcare landscape across the country has shifted dramatically following the COVID-19 pandemic and the way we approach this work must change. Financial impacts from the pandemic continue to increase as hospitals face a new normal of higher labor expenses, lower patient volumes and increased drug expenses.

What happens if my insurance company goes out of network?

If your insurance company goes out of network, they are required by law to notify all members. Though there is no similar requirement for Reid Health to do the same, we are providing all the latest information about negotiations here. Rest assured; Reid Health will continue to provide you the information you need well in advance of any changes.

Where can I find out more information?

We know how important it is to you to have up-to-date information, which is why we’ve created this website. As we continue to work through these negotiations, we’ll provide you the latest updates here.