Report: End of COVID-19 PHE’s Medicaid provisions further threaten hospitals’ financial health 

May 31, 2023 - 02:58 PM
business meeting looking over financials

Medicaid disenrollments are a looming concern for hospitals already operating close to the margins, according to a new report by Kaufman Hall. For April, hospitals’ median year-to-date operating margin index was 0.0%. The analysis also highlights how continued high expenses and inflation are compounded by declining volume and increasing lengths of stay. At the same time, five states began to disenroll people from Medicaid in April, raising concerns about the impact of the unwinding of the Medicaid continuous coverage requirement of the COVID-19 public health emergency on patients and providers.  
  
“With states conducting their Medicaid eligibility redetermination, it’s predicted that hundreds of thousands of people will ultimately become uninsured,” said Kaufman Hall’s Erik Swanson. “The data indicate that we may already be seeing the effects of disenrollment materialize with patients less likely to seek out the care they need and a continued rise in bad debt and charity care.” 

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