# Ind. Code § 12-15-16-3: Low income utilization rate; contractual allowances and discounts

> Indiana · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-3

## Section

- **Citation:** Ind. Code § 12-15-16-3
- **Heading:** Low income utilization rate; contractual allowances and discounts
- **Jurisdiction:** Indiana
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Indiana Code / Title 12 / Article 15 / Chapter 16 / Section 12-15-16-3

## Text

Sec. 3. (a) For purposes of disproportionate share eligibility, a provider's low income utilization rate is the sum of the following, based on the most recent year for which an audited cost report is on file with the office:

(1) A fraction (expressed as a percentage) for which:

(A) the numerator is the sum of:

(i) the total Medicaid patient revenues paid to the provider; plus

(ii) the amount of the cash subsidies received directly from state and local governments, including payments made under the hospital care for the indigent program (IC 12-16-2) (before its repeal) and IC 12-16-2.5; and

(B) the denominator is the total amount of the provider's patient revenues paid to the provider, including cash subsidies; and

(2) A fraction (expressed as a percentage) for which:

(A) the numerator is the total amount of the provider's charges for inpatient services that are attributable to care provided to individuals who have no source of payment; and

(B) the denominator is the total amount of charges for inpatient services.

(b) The numerator in subsection (a)(1)(A) does not include contractual allowances and discounts other than for indigent patients not eligible for Medicaid.

[Pre-1992 Revision Citation: 12-1-7-60(c).]

As added by P.L.2-1992, SEC.9. Amended by P.L.277-1993(ss), SEC.73; P.L.113-2000, SEC.7; P.L.283-2001, SEC.23; P.L.120-2002, SEC.16.

## Nearby sections

- [Ind. Code § 12-15-16-1 Disproportionate share provider status](https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-1.md)
- [Ind. Code § 12-15-16-2 Inpatient utilization rate](https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-2.md)
- [Ind. Code § 12-15-16-3 Low income utilization rate; contractual allowances and discounts](https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-3.md)
- [Ind. Code § 12-15-16-4 Repealed](https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-4.md)
- [Ind. Code § 12-15-16-5 Implementation; federal approval; termination of implementation](https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-5.md)
- [Ind. Code § 12-15-16-6 Basic disproportionate payments to hospitals; amount](https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-6.md)
- [Ind. Code § 12-15-16-7 Disproportionate share payments when hospital assessment fees are authorized; not applicable when state directed payment program in effect](https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-7.md)
- [Ind. Code § 12-15-16-7.3 Disproportionate share payments during state directed payment program in effect; state plan amendment for payments; state mental health institutions](https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-7.3.md)
- [Ind. Code § 12-15-16-7.5 Expired](https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-7.5.md)
- [Ind. Code § 12-15-16-7.7 Disproportionate share payment plan; requirements; state plan amendment for plan](https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-7.7.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_IN_T12_A15_C16_S12-15-16-3. Check the current official text before relying on it. Not legal advice.