Non-profit hospitals in Indiana would be punished for charging too much if a bill passed out of the Senate Health and Provider Services Committee Wednesday, becomes law. But, some hospitals say that could put them out of business.

“My hospital would be losing $35 million to $50 million a year and that’s unsustainable,” said Mike Shroyer, president of Baptist Health Floyd, in southeast Indiana, which is now affiliated with Baptist Health in Louisville.

He was offering testimony to the committee before the bill passed 10-1.

“This last fiscal year even with record buy-ins, I lost $22 million,” he said.

The bill (HB1004), would put an excise tax on hospitals that charge more than 265 percent in facility fees of the Medicare reimbursement rate and hospitals that charge more than 300 percent could lose their non-profit status.

Matt Bell, with Hoosiers for Affordable Health Care, believes it will lower big hospital bills.

“It doesn’t force a behavior, it presents a choice,” he said. “We think hospitals will make the choice under this law to lower prices for your constituents and we think that can be accommodated through great management decisions without sacrificing quality.”

Several lawmakers on the committee said they voted in favor of the bill, though they had reservations.