Moody's: 10 Children's Hospitals Most Reliant on Medicaid

Earlier this month, a report from Moody's Investors Service found that the expansion of narrow networks would help nonprofit hospitals that treat large shares of low-income patients.

A recent proposal from CMS could stop networks from narrowing further. Last month, CMS issued guidance for health insurers looking to sell health plans through the federally facilitated marketplace or federally run small business health options program in 2015 under the Patient Protection and Affordable Care Act. CMS intends to propose that qualified health plan provider networks include at least 30 percent of available essential community providers, up from 20 percent in 2014.

"Essential community providers" include disproportionate share hospitals, rural referral centers, sole community hospitals, critical access hospitals and other safety-net providers. These hospitals that normally would get excluded from narrow networks could gain the most from the CMS proposal, Moody's said.

Children's hospitals, which rely on large numbers of Medicaid patients, are also poised to benefit, according to the report. Children's hospitals would gain access to the private exchange plans, which are expected to reimburse better than governmental payers.

Here are 10 nonprofit children's hospitals that are most reliant on Medicaid within Moody's portfolio and stand to benefit from the expansion of narrow networks. Note: To see the 10 nonprofit general hospitals and health systems that are most exposed to Medicaid in Moody's portfolio, click here.

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