Report says hospitals will cushion potential volatility thanks to Obamacare, Medicaid expansion

December 05, 2015

A Fitch Ratings report shows non-profit hospitals, which make up the bulk of the nation's inpatient health facilities, have built a "solid financial cushion to absorb potential operating volatility" in 2016. "Providers in Medicaid expansion states experienced particularly higher clinical volumes with material reductions in charity care and bad debt expense", the report said. "Clinical volumes from Medicare and commercial payers were also fairly solid with inpatient admissions holding steady year over year and higher levels of outpatient activity." Though there is concern about the lack of young people signing up for subsidized private coverage on the public exchanges, the report said there will continue to be growth as more states opt to expand Medicaid under the health law.