Indiana Gov. Mike Braun has signed a bill aimed at regulating high hospital prices in the state.

House Bill 1004 was signed into law on Tuesday. The bill will revoke the nonprofit status of hospitals with prices exceeding the state average, as determined by the Indiana Office of Management and Budget, who will use 2023 and 2024 data. Nonprofit hospital systems must submit audited financial statements annually or face a $10,000 daily penalty.

The first study by the Office of Management and Budget is expected to be completed by June of 2026.

Gov. Braun previously said during his first state of the state address earlier this year that this has been an issue “too tough to tackle” thanks to “entrenched special interests.”

“Hoosiers pay some of the highest healthcare costs in the country,” he said. “When providers compete, prices drop.”

The law will be fully implemented by 2029. Hospitals will have from now until then to meet pricing requirements and regain nonprofit status.