Montana hospitals' collective profit margin plunged 40% after Medicaid program expanded

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Montana hospitals saw their total profit margin decrease 40 percent during the first full year of Medicaid expansion in the state, according to the Daily Interlake, which cited a recent report by the Montana Hospital Association.

 

Medicaid expansion in Montana provided insurance coverage to 77,000 additional residents and lowered hospital charity care rates. However, the expanded program also  took a toll on hospital finances as Medicaid reimbursement rates fell below the cost of care, according to the report.

"With reimbursement from Medicare, Medicaid and some managed care plans falling below the cost to deliver care, cost-shifting and the reliance on other revenue streams become more acute," Montana Hospital Association CEO Dick Brown told the Daily Interlake.

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