News & Insights

Health systems saw income decline after ACA expansion

News Article - 09.18.18

Medicare Payment Policies

Financial Management

A Navigant study of 104 for-profit and nonprofit healthcare systems showed 65% experienced a drop in operating income from fiscal 2015 to 2017, after the Affordable Care Act's insurance coverage expansion. Factors included higher expenses, weaker demand for core hospital services and inpatient admissions, reduced collections for private accounts in non-ACA expansion states, and an erosion in Medicare reimbursement rates.
Becker's Hospital CFO Report (9/12)