Hospitals’ uncompensated care costs fell by $7.4B last year

Uncompensated care costs at U.S. hospitals fell by an estimated $7.4 billion in 2014 due to the expansion of healthcare coverage under the Patient Protection and Affordable Care Act, according to a recent report from HHS’ Office of the Assistant Secretary for Planning and Evaluation.

Advertisement

ASPE estimated hospitals’ uncompensated care costs would have been $34.7 billion in 2014 if the uninsured rate had remained at its 2013 level. However, actual uncompensated care costs for 2014 were estimated to be $27.3 billion.

The majority of the estimated savings ($5 billion) came from states that have expanded Medicaid, representing a 26 percent reduction in uncompensated care costs in those states.

There was also an estimated $5.5 billion reduction in charity care costs at hospitals across the country in 2014, according to the report.

More articles on healthcare finance:

Details on Banner Health’s $86M facility in Colorado released
Henry Ford Health System posts $27.8M surplus
5 hospital CFOs in the headlines this week

Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.