Richard Lindrooth, PhD, of Aurora-based University of Colorado, and colleagues used data from 2008 to 2015 that tracked hospital closures and financial performance.
Researchers found hospitals in states that expanded Medicaid through the ACA had improved financial performance. Those same hospitals also lowered their rate of closure, especially in rural areas and/or with large uninsured populations.
Researchers recommend future efforts to reform Medicaid should consider the relationship between Medicaid coverage levels and the financial viability of hospitals.
They said, “Our results imply that reverting to pre-ACA eligibility levels would lead to particularly large increases in rural hospital closures. Such closures could lead to reduced access to care and a loss of highly skilled jobs, which could have detrimental impacts on local economies.”
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