Noteworthy News

Reform-Mandated Payment Cuts Will Hurt Hospital Margins

The operating margins of the nation’s private, non-profit urban safety-net hospitals could fall significantly if all of the Medicare payment cuts mandated by the Affordable Care Act are implemented as planned.

According to the new National Association of Urban Hospitals (NAUH) study “The Potential Impact of the Affordable Care Act on Urban Safety-Net Hospitals,” the median operating margin of the nation’s private urban safety-net hospitals, currently close to zero, could fall to -2.0 percent when the 2010 health reform law’s Medicare disproportionate share payments (Medicare DSH) cuts and other Medicare payment changes take effect.

Read more about the effect of Affordable Care Act’s Medicare payment changes on urban safety-net hospitals’ operating margins and why those margins are so important in this new NAUH reportNAUH Logo.

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