Heterogeneous Effects of the ACA Medicaid Expansion on Hospital Financial Outcomes

13 Pages Posted: 6 May 2020

See all articles by Jordan Rhodes

Jordan Rhodes

University of Michigan

Thomas Buchmueller

University of Michigan

Helen Levy

University of Michigan at Ann Arbor - Institute for Social Research (ISR); National Bureau of Economic Research (NBER)

Sayeh Nikpay

Vanderbilt University

Date Written: January 2020

Abstract

This study examines the effect of the Affordable Care Act's Medicaid expansion on hospital financial outcomes. A key innovation relative to prior studies is that we explicitly account for heterogeneity across states in the timing and extent of the expansion as well as across hospital types. We find that Medicaid expansion led to a decrease in uncompensated care expenditures and an increase in average operating margins. The effects were larger in states where the Medicaid expansion led to a greater increase in program eligibility. Operating margins improved most for public hospitals and facilities located in rural areas.

JEL Classification: I11, I13, I18

Suggested Citation

Rhodes, Jordan and Buchmueller, Thomas and Levy, Helen and Nikpay, Sayeh, Heterogeneous Effects of the ACA Medicaid Expansion on Hospital Financial Outcomes (January 2020). Contemporary Economic Policy, Vol. 38, Issue 1, pp. 81-93, 2020, Available at SSRN: https://ssrn.com/abstract=3593669 or http://dx.doi.org/10.1111/coep.12428

Jordan Rhodes (Contact Author)

University of Michigan

Thomas Buchmueller

University of Michigan ( email )

Helen Levy

University of Michigan at Ann Arbor - Institute for Social Research (ISR) ( email )

Ann Arbor, MI 48106-1248
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Sayeh Nikpay

Vanderbilt University ( email )

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