The Effects of the Affordable Care Act on Operating Cost in Nonprofit, Full-Service Hospitals in the District of Columbia (IRS Tax Years 2010-2013)

16 Pages Posted: 7 Oct 2018

Date Written: June 14, 2018

Abstract

The Patient Protection and Affordable Care Act (ACA) was signed into law by President Barack Obama on March 23, 2010. The ACA has two primary goals: expand access to health insurance and reduce healthcare costs. The ACA has been described as one of the most contentious pieces of federal legislation ever enacted by the United States Government. Opponents of the ACA claim that the ACA will put a strain on hospitals and result in increased healthcare cost. Supporters of the ACA argue the opposite is true and suggest that the ACA will reduce operational redundancies and streamline healthcare operational activities, resulting in lower healthcare cost. Hospitals face significant operating expenses in delivering care. A review of the available studies that have been conducted on the effects of the ACA shows that little research is focused on the effect of the ACA on hospital operating cost, especially as it pertains to nonprofit hospitals. The purpose of this research was to ascertain the effect of the ACA on the operating cost of full-service hospitals in the District of Columbia between IRS tax year 2010 and IRS tax year 2013.

Keywords: ACA, Hospital Cost, Healthcare Cost, Patient Protection and Affordable Care Act, Operating Cost

Suggested Citation

Von Batten, Karl, The Effects of the Affordable Care Act on Operating Cost in Nonprofit, Full-Service Hospitals in the District of Columbia (IRS Tax Years 2010-2013) (June 14, 2018). Available at SSRN: https://ssrn.com/abstract=3249635 or http://dx.doi.org/10.2139/ssrn.3249635

Karl Von Batten (Contact Author)

Montague York ( email )

Washington, DC
United States

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