Dobson|DaVanzo

Dobson | DaVanzo Investigates Financial Impact on Hospitals of Proposed Federal Legislation

Published Friday, December 12, 2025 2:00 am

The co-authored analysis was an issue brief titled, “The Impact of Proposed Federal Medicaid Work Requirements on Hospital Revenues and Financial Margins.” The study found that work requirements for Americans covered by the Affordable Care Act’s Medicaid eligibility expansion could cause large coverage losses, leading to an 11.7 to 13.3 percent decline in operating margins, on average, for hospitals in Medicaid expansion states. Safety-net hospitals, which treat a higher proportion of low-income and Medicaid patients, could experience a 25.9 to 29.6 percent reduction in operating margins, on average, with even greater declines in rural areas and certain states. The full issue brief is available on The Commonwealth Fund’s website.