Absorbing reductions in Medicaid spending could be challenging for hospitals, particularly for those that are financially vulnerable, such as hospitals that care for a relatively large share of Medicaid patients. Reducing reimbursement rates or cutting supplemental payments to hospitals would have a direct impact on hospital finances. Rolling back coverage would increase the number of uninsured patients, which could result in higher uncompensated care costs (and have implications for the health of Medicaid enrollees who lose coverage or have access to fewer benefits). Hospitals may respond to those financial pressures by operating more efficiently or by making various cuts.
Read the full article: 5 Key Facts About Medicaid and Hospitals //
Source: https://www.kff.org/medicaid/issue-brief/5-key-facts-about-medicaid-and-hospitals/