Nonprofit hospitals haven’t increased charity spending under Medicaid expansion, study finds

In states that expanded Medicaid, nonprofit hospitals didn’t substantially change their charity care spending, according to a study published in JAMA Network Open.

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For the report, researchers studied financial filings for 2,253 nonprofit hospitals in the U.S. from 2012-16 to analyze their net spending on community benefits. 

Using a difference-in-difference regression model, the researchers found Medicaid expansion was associated with a 2 percent reduction in uncompensated care spending, like charity care. However, the decrease was offset by a 2 percent increase in unreimbursed Medicaid expenses, the researchers said.

“In this study, large decreases in uncompensated care among tax-exempt hospitals associated with Medicaid expansion were not accompanied by increases in other reportable categories of community health benefit spending,” the researchers concluded. “Instead, they were accompanied by increased spending on unreimbursed Medicaid expenses.”

Read the full study here.

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