MaxGrit
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- Mar 21, 2014
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The closing of the rural hospitals is not entirely because of the ACA. And it isn't possible to draw that conclusion from the OP link unless one is extremely selective in one's vision.
Medicaid and Medicare reimbursement cuts are actually an ongoing part of the Republican budget in the 90s that supposedly were going to balance the budget. But ever since then, Congress has had to enact several "doc fix" bills to avoid those cuts.
The ACA is culpable in this situation in that it requires medical facilities to modernize. Electronic medical records and things of that nature. This is an expense out of reach of those hospitals who mostly provide service to Medicaid/Medicare patients.
It's a double whammy. If you serve mostly Medicaid/Medicare patients, you are already on a razor's edge because of the drive to reduce Medicaid/Medicare reimbursements, and then you are required to modernize under the ACA.
Not entirely because of the PPCA, but it is more complicated than having computerized record keeping. Very small hospitals can get 100% reimbursement, but if you go over a certain number of beds (25 I think), then every patient is treated at a loss. The PPACA also diverted funding away from subsidizing indigent treatment, so they no longer get a check for people who come in uninsured. They also just do not have the volume of insured patients to absorb the losses on no insurance/medicaid/medicare if they have more than the bed cliff.