ACA Repeal Bill Expected to Hit Rural Safety-Net Hospitals Especially Hard
<p>The steep reductions in federal Medicaid funding called for in Affordable Care Act repeal-and-replace proposals would place many of the nation’s safety-net hospitals, particularly those in rural areas, at serious financial risk.</p><p><strong></strong></p>
<p>According to a new Commonwealth Fund analysis of the House-passed American Health Care Act (AHCA), the financial status of safety-net hospitals, which serve some of the most vulnerable people, would begin to deteriorate starting in 2020 as the bill’s reductions in Medicaid coverage and per-capita spending limits go into effect. By 2026, net income for these hospitals is projected to fall by 83 percent, say researchers Allen Dobson, Joan DaVanzo, and Randy Haught.</p>
<p>Safety-net hospitals in Medicaid expansion states would have the steepest losses under the AHCA, with small rural hospitals and small and mid-size urban hospitals experiencing the largest negative impact.</p>