Morgan Stanley: ACA uncertainty to affect hospitals' bad debt beyond Q3

Morgan Haefner - Print  | 

Uncertainty over the ACA will cause fewer people to be insured and pressure hospitals' finances, Morgan Stanley analysts wrote in a note to clients Monday, according to Business Insider.

The uninsured rate is already growing. In the third quarter of this year, the number of uninsured Americans grew to 12.3 percent, up from 11.7 percent in the previous quarter. This is the highest percentage since 2014.

Morgan Stanley analysts pointed to destabilization of the public exchanges, changes to the open enrollment schedule and increasing premiums as contributors to the predicted incline in uninsured patients.

"Challenging political and regulatory environment will likely impact bad debt / uncompensated care in our facilities coverage beyond [third quarter of 2017]," the analysts said. "Given the recent executive order by President [Donald] Trump and subsequent decision to suspend [cost-sharing reduction] subsidies, we see near-term headwinds for hospitals through either low volume or increased bad debt." 

More articles on healthcare finance:
U of Kansas Hospital receives $10M gift toward its new facility
11 recent hospital, health system outlook and credit rating actions
8 recent grants, donations to healthcare organizations


© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.