Dobson|DaVanzo

Dobson | DaVanzo Releases Study for The Commonwealth Fund on Comparing the Affordable Care Actís Financial Impact on Safety-Net Hospitals in States That Expanded Medicaid and Those That Did Not

Published Tuesday, November 21, 2017

In a study for The Commonwealth Fund, Al Dobson, Joan DaVanzo, Randy Haught and Phap-Hoa Luu examined how the Affordable Care Act’s Medicaid expansion affected the financial status of safety-net hospitals.  Using Medicare Hospital Cost Report data for federal fiscal years 2012 and 2015, the authors analyzed changes in Medicaid inpatient days as a percentage of total inpatient days, Medicaid revenues as a percentage of total net patient revenues, uncompensated care costs as a percentage of total operating costs, and hospital operating margins.  The authors found that the operating margins of safety-net hospitals in expansion states improved (in large part due to increased Medicaid revenues and reduced uncompensated care costs) while the operating margins of safety-net hospitals in non-expansion states declined.  The study can be accessed here.