Affordable Care Act and hospital uncompensated care

Hospital Uncompensated Care Down

As was surely expected, reforms introduced through implementation of the Affordable Care Act have driven down uncompensated care costs for many hospitals. How much? A new study published by the Commonwealth Fund offers the following findings: uncompensated care declines in expansion states are substantial relative to profit margins; for every dollar of uncompensated care costs hospitals in expansion states had in 2013, the Affordable Care Act erased 41 cents by 2015; and Medicaid expansion reduced uncompensated care burdens for safety-net hospitals that are not made whole by Medicaid disproportionate share payments (Medicaid DSH). Learn more, including how the decline in [...]

2017-05-15T06:00:48-04:00May 15, 2017|Affordable Care Act, hospitals|

ACA Improved Hospital Financial Performance

Hospitals in states that expanded their Medicaid programs under the Affordable Care Act enjoyed improved financial performance, a new analysis has found. According to the report from the Urban Institute and the Robert Wood Johnson Foundation and based on FY 2015 data, In states that expanded Medicaid through the ACA, hospitals had $5.0 million in increased Medicaid revenue and $3.2 million decreased uncompensated care costs, on average per hospital. Hospitals in states that expanded Medicaid through the ACA improved average operating margins by 2.5 percentage points. Small hospitals, for-profit and non-federal government-operated hospitals, and those in non-metropolitan areas saw the [...]

2017-04-06T06:00:32-04:00April 6, 2017|Affordable Care Act, hospitals|
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