Noteworthy News

The Potential Impact of Affordable Care Act

iStock_000015640638XSmallOne of the more frequently overlooked aspects of the Affordable Care Act is a provision that calls for Medicare DSH payments to qualified hospitals to be slashed 75 percent beginning in FY 2014.  While hospitals will see the restoration of some of this reduction based on how much uncompensated care they continue to provide even after the insurance mandate and the expansion of Medicaid rolls takes place, the impact of this Medicare DSH cut will be enormous – and painful – for urban safety-net hospitals.  According to an NAUH analysis, the typical private, non-profit urban safety-net hospital will see a loss of $8.5 million in Medicare DSH revenue in FY 2014 alone and a cumulative loss of $53.1 million from 2014 through 2019.  Read more about this in the NAUH study The Potential Impact of Affordable Care Act-Mandated Medicare DSH Cuts on Urban Safety-Net Hospitals.

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