Medicaid Expansion Linked To Better Hospital Financial Performance

Hospitals in Medicaid expansion states during 2014 had more Medicaid revenue and lower costs for uncompensated care, which together improved hospital profit margins. Hospitals in expansion states experienced a $3.2 million increase in mean annual Medicaid revenue per hospital, compared to hospitals in non-expansion states. Medicaid expansion was associated with a drop of $2.8 million in mean annual uncompensated care costs per hospital. Medicaid expansion was also significantly associated with 1.1 percentage point improvement in excess margins but not improved operating margins.

These findings were reported in “Association Between the 2014 Medicaid Expansion and US Hospital . . .