For-Profit Hospital Chains Are Seeing Many Benefits From ACA


For-profit hospital chains are seeing many benefits from the Affordable Care Act. With expanded healthcare coverage as a result of the ACA, “for-profit hospital chain payer mix has improved, bad debt has declined and operating margins are edging up,” Modern Healthcare reports.

The rating agency Fitch has upgraded the credit ratings for several hospital groups. Hospitals have “reported more Medicaid patients, as well as a drop in their uninsured patient population in their second-quarter earnings reports. Benefits have been the greatest in states that have expanded their Medicaid programs.”

Fitch believes hospitals “are likely to retain the additional volume they've picked up under the ACA.”

Additionally, Fitch “expects the largest chains to continue to seek out mergers and acquisitions, perhaps looking at cross-border deals.”

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