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Morning Briefing

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Monday, Dec 7 2015

Full Issue

Nonprofit Hospitals Build 'Solid Financial Cushion,' Financial Analysis Finds

The report by Fitch Ratings says most hospitals had higher volumes in 2015 because of patients' increased coverage under the federal health law and the growing number of people covered by Medicare and Medicaid.

A new report from Fitch Ratings shows the outlook for nonprofit hospitals, which makeup the bulk of the nation’s inpatient health facilities, have built a “solid financial cushion to absorb potential operating volatility” in 2016. “Clinical volumes in 2015 were higher than anticipated, primarily reflecting the benefits of increased coverage under the ACA, as well as growth in the Medicare population and a higher level of activity from commercial beneficiaries,” Fitch said in its report. “Providers in Medicaid expansion states experienced particularly higher clinical volumes with material reductions in charity care and bad debt expense. Clinical volumes from Medicare and commercial payors were also fairly solid with inpatient admissions holding steady year over year and higher levels of outpatient activity.” (Japsen, 12/6)

A new Obama administration report out this week showing that federal government spending on Medicare, Medicaid and Obamacare surged in 2014 by 11.7 percent after years of relative stability is rekindling a controversy over generational disparities in the government’s spending priorities. While a considerable chunk of the $844 billion of federal health care spending last year went for children and younger adults, Medicare spending for seniors hit a total of $618.7 billion in 2014 and accounted for 20 percent of total health expenditures. (Pianin, 12/4)

A group seeking to lead a broad national effort by consumers to make health care more affordable and available has formed in Washington, contending that even with more widespread insurance coverage under the Affordable Care Act, many people cannot obtain the care they need. Partners for Better Care claims it already represents 10 million patients through affiliations with other advocacy groups such as AIDS United, the Parkinson’s Action Network and United Cerebral Palsy. The organization also is hoping to enlist larger health care advocacy groups. (Bernstein, 12/4)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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