Bank of America Says Healthcare Reform Boosting Hospital Profits

The Patient Protection and Affordable Care Act will likely lead to increased profits for hospitals, according to a Yahoo Finance report.

The most significant increase in hospital profits is anticipated to occur in the second quarter of this year, said Kevin Fischbeck, a Bank of America analyst, in the report.

Mr. Fischbeck said hospitals will see fewer charity cases under the ACA, and that will lead to important profit gains. He expects this to have a significant impact in the second quarter, as he anticipates a surge in insurance coverage from the exchanges during that time.

Mr. Fischbeck also reflected on the first quarter of this year, when many hospitals had improvement due to Medicaid expansion. "Reform benefits were clear and immediate in the first quarter," said Mr. Fischbeck, in the report.

More Articles on the PPACA:

How Americans Feel About U.S. Healthcare: 12 Statistics 
Majority of Employers Believe Health Law Will Negatively Affect Their Companies 
3 Risk Management Tips For Hospitals in the New Healthcare Environment 

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