Noteworthy News

Medicaid Expansion to Ease Hospitals’ Uncompensated Care

Hospitals in states that expand their Medicaid programs under provisions of the Affordable Care Act should see a reduction in their uncompensated care once people begin applying for Medicaid benefits.

But hospitals in these states will continue to lose money serving Medicaid patients because Medicaid payments seldom cover the cost of the services hospitals provide.  Demand for Medicaid service will grow in these states, moreover, as more people become eligible for benefits and some who have not had regular access to care for years begin to use their new benefits to address long-standing medical problems.

Urban safety-net hospitals can expect significant influxes of new patients when their states expand their Medicaid programs.  While they will most likely see a significant reduction in their uncompensated care, some of those savings will no doubt be offset by increases in their Medicaid shortfalls.

Michigan became the most recent state to decide to take advantage of the Affordable Care Act and expand its Medicaid program.  Read more about how Medicaid expansion will affect hospitals in that state in this Detroit Free Press articleiStock_000001497717XSmall.

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