Dive Brief:
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The cost to U.S. hospitals of uncompensated care decreased by $7.1 billion in 2015, according to the American Hospital Association’s annual Uncompensated Hospital Care Cost Fact Sheet.
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The cost of uncompensated care in U.S. hospitals decreased between 2013 and 2014 as well, by $3.6 billion.
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The cost of uncompensated care as a percentage of total expenses also dropped significantly in 2015, from 5.3% to 4.2%, representing the first time it has dipped below 5.0% in the last 25 years.
Dive Insight:
The reduction in uncompensated care was even more than had been predicted last year. To put the numbers in perspective, uncompensated care costs had steadily increased every year between 1990 and 2013.
But while the figures in the AHA's new report are promising, Republicans' current plans to repeal the ACA could lead to major financial stress among hospitals. In December, the AHA and the Federation of American Hospitals released a report that examined the possible effect of a repeal without a replacement plan and found that hospitals would suffer losses of more than $450 billion between 2018 and 2026.
A huge portion of the savings realized under the ACA can be attributed to Medicaid expansions, one of the elements of the healthcare law that is likely on the chopping block. Should the Trump administration succeed in repealing the ACA, the market may well be flooded with individuals who have lost coverage—and without alternative measures in place, hospitals will end up footing the bill for their emergency care.