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Heterogeneous Effects Of The Aca Medicaid Expansion On Hospital Financial Outcomes

Author

Listed:
  • Jordan H. Rhodes
  • Thomas C. Buchmueller
  • Helen G. Levy
  • Sayeh S. Nikpay

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)

Suggested Citation

  • Jordan H. Rhodes & Thomas C. Buchmueller & Helen G. Levy & Sayeh S. Nikpay, 2020. "Heterogeneous Effects Of The Aca Medicaid Expansion On Hospital Financial Outcomes," Contemporary Economic Policy, Western Economic Association International, vol. 38(1), pages 81-93, January.
    • Handle: RePEc:bla:coecpo:v:38:y:2020:i:1:p:81-93
    DOI: 10.1111/coep.12428
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    References listed on IDEAS

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    1. Unknown, 2016. "Department Publications 2014," Publications Lists 239845, University of Minnesota, Department of Applied Economics.
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    Cited by:

    1. Ali Moghtaderi & Jesse Pines & Mark Zocchi & Bernard Black, 2020. "The effect of Affordable Care Act Medicaid expansion on hospital revenue," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1682-1704, December.
    2. Pinka Chatterji & Hanna Glenn & Sara Markowitz & Jennifer Karas Montez, 2022. "ACA Medicaid Expansions and Maternal Morbidity," NBER Working Papers 30770, National Bureau of Economic Research, Inc.
    3. Pengju Zhang & Ling Zhu, 2021. "Does the ACA Medicaid Expansion Affect Hospitals’ Financial Performance?," Public Finance Review, , vol. 49(6), pages 779-814, November.

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    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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