Hospital company poised to tap ACA's Medicaid expansion

August 03, 2015

A new investor-owned hospital company is poised to tap an emerging market of Americans in rural areas and smaller communities gaining health coverage. Community Health Systems (CYH) will spin off to its shareholders a group of 38 smaller hospitals, primarily in rural and suburban markets with populations of no more than 50,000. In 84% of these markets, Community said the hospital is the "sole provider of acute hospital services." Only 14 of these hospitals are located in states that have not expanded Medicaid coverage for poor Americans such as Alabama, Georgia, Texas, Tennessee and Wyoming. Another hospital is located in Utah, which is considering joining the increasing number of Republican-leaning states that are embracing Medicaid expansion.