Finch Ratings: Medicaid Disenrollment Set to Financially Impact Not-For-Profit Hospitals

A new analysis from Finch Ratings finds that non-profit hospitals’ bottom lines will be hurt by upcoming Medicaid disenrollment triggered by the imminent end of the COVID-19 public health emergency. Many patients going to not-for-profit hospitals were covered by Medicaid expansions. Since a large number of these patients will be disenrolled, Finch predicts that they will have to receive charity care that hospitals will not be paid for, hurting their revenue.

According to Frank Diamond, “Fitch Ratings said that the expiration of the Medicaid continuous enrollment provision under the PHE will be “mildly dilutive” to NFP payer mixes and add to operating pressures. Also, the higher the volume of Medicaid beneficiaries NFPs handle, the more chance of an adverse effect on credit rating, as well the quality of care.”

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(Source: Fierce Healthcare, April 14^th, 2023)