In the two-year period, bad debt decreased from $285 million to $188 million and charity care fell from $328 million to $176 million, according to the report, which cited information from the Wisconsin Hospital Association.
Both stark declines are attributed to higher insured rates under the ACA. According to the U.S. Census Bureau, Wisconsin’s uninsured rate dropped 38 percent from 2013 to 2015.
Although hospitals saw bad debt and charity care decline, those gains have been offset by Medicare reimbursement cuts, Brian Potter, senior vice president for finance at the Wisconsin Hospital Association, told The Journal Times.
The ACA “moved the bucket from dollars in charity care to Medicare shortfalls and Medicaid shortfalls,” Mr. Potter said.
More articles on healthcare finance:
4 of 37 provider-sponsored health plans profitable in 2015
Illinois ordered to increase Medicaid funding to providers during budget impasse
Federal judge to decide whether Illinois must expedite $2B in Medicaid payments owed to providers in budget stalemate
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
