HETEROGENEOUS EFFECTS OF THE ACA MEDICAID EXPANSION ON HOSPITAL FINANCIAL OUTCOMES

Jordan H. Rhodes, Thomas C. Buchmueller, Helen G. Levy, Sayeh S. Nikpay

Research output: Contribution to journalArticle

1 Scopus citations

Abstract

This study examines the effect of the Affordable Care Act's Medicaid expansion on hospital financial outcomes. A key innovation relative to prior studies is that we explicitly account for heterogeneity across states in the timing and extent of the expansion as well as across hospital types. We find that Medicaid expansion led to a decrease in uncompensated care expenditures and an increase in average operating margins. The effects were larger in states where the Medicaid expansion led to a greater increase in program eligibility. Operating margins improved most for public hospitals and facilities located in rural areas. (JEL I11, I13, I18).

Original languageEnglish (US)
Pages (from-to)81-93
Number of pages13
JournalContemporary Economic Policy
Volume38
Issue number1
DOIs
StatePublished - Jan 1 2020
Externally publishedYes

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