|[October 28, 2013]
Fitch: Hospitals in States Not Expanding Medicaid Under ACA Face Financial Challenges
NEW YORK --(Business Wire)--
Hospitals and healthcare systems operating in states not expanding
Medicaid under the Patient Protection and Affordable Care Act (ACA) will
likely face greater financial challenges and rating pressure than those
operating in states expanding Medicaid, according to a Fitch Ratings
"Hospitals operating in states not expanding Medicaid, which usually
have higher uninsured and poverty rates, will have to absorb the full
impact of the ACA reimbursement cuts without the full benefit of
increased insured volumes," said Adam Kates, Director in Fitch's Public
Texas, Florida, Georgia, Louisiana, Mississippi, and South Carolina are
not expanding Medicaid and have among the highest uninsured and poverty
rates, and some of the most stringent Medicaid eligibility requirements.
Fitch believes hospitals in these states, particularly those with weak
payor mixes, will be particularly vulnerable.
Hospitals located in affluent areas with stronger payor mixes are likely
to absorb non-expansion of Medicaid better than hospitals with weak
service area demographics.
Several mitigating factors exist, however, including the ability of a
state to expand Medicaid in the future, the fact that reimbursement
reductions will be implemented over a period of time, and the
redistribution of disproportionate share hospital funds to hospitals
with the highest uncompensated care rates.
For more information, a speial report titled "Adverse Expansion:
Hospitals, States and Medicaid" is available on the Fitch Ratings web
site at www.fitchratings.com,
or by clicking on the link.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: Adverse Expansion: Hospitals,
States, and Medicaid
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
[ InfoTech Spotlight's Homepage ]