Association Between the 2014 Medicaid Expansion and US Hospital Finances

Journal Article

Association Between the 2014 Medicaid Expansion and US Hospital Finances

October 10, 2016

Abstract

This study estimates the association between the Medicaid expansion in 2014 and hospital finances by assessing differences between hospitals in states that expanded Medicaid and in those states that did not expand Medicaid. This analysis primarily uses fiscal year 2011-2014 data from Health Care Cost Reports. Overall, hospitals located in states that implemented the Medicaid expansion had significantly increased Medicaid revenue, decreased uncompensated care costs, and improvements in profit margins compared with hospitals located in states that did not expand Medicaid. Further study is needed to assess longer-term implications of this policy change on hospitals’ overall finances.

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