CHRT researchers examined Medicare cost reports to analyze 104 Michigan hospitals’ financial characteristics before and after the state implemented its Healthy Michigan Plan Medicaid expansion.
Here are three findings from the report.
1. The effect of Michigan’s Medicaid expansion on hospitals’ uncompensated care costs — which include charity care and bad debt — was greater for charity care expenses. Charity care costs fell 70 percent from 2013 to 2015.
2. Shares of hospitals’ uncompensated care expenses decreased from 3.6 percent for the average Michigan hospital in 2013 to 1.7 percent in 2015. “However, hospitals had different levels of uncompensated care burdens and the effects of coverage expansion varied by specific hospital characteristics,” the report notes.
3. Median hospital operating margins in Michigan increased from -4.3 percent in 2013 to -0.5 percent in 2015 following Medicaid expansion.
To view the report, click here.
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