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Decrease in Uninsured Patients is Good News for Hospitals

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By Phil Cohen

The economic benefits of expanded coverage under the Affordable Care Act are extending to hospitals and individuals, another success story of the embattled healthcare law.

Nationwide hospital system Hospital Corporation of America reported decreases in its uninsured patients ranging from 6.6 percent on average across its more than 150 hospitals to nearly 50 percent in the four states that expanded their Medicaid coverage. Likewise, LifePoint Hospitals saw a 2 percent average decrease in self-pay patients.

These figures indicate a positive outlook for hospitals, patients, and the companies that provide critical services to hospitals and other healthcare facilities.


The most clear-cut victors are the hospital systems themselves. With fewer patients coming in without insurance, and more ER patients covering their own care, hospitals are enjoying slower growth in healthcare spending and far fewer costs associated with bad patient debt.


ACA implementation gave millions of Americans access to affordable healthcare, and it has also significantly slowed Medicaid spending to benefit taxpayers. Also, as hospitals benefit from reduced spending they may be less inclined to increase the price of care – a potential savings for patients.

Healthcare Vendors

Most importantly, with fewer strains on their budget hospitals may be able to turn around faster payments to the many vendors who provide temporary nurses, healthcare equipment, and medical billing services. Vendors will benefit from reduced healthcare spending in covering their own expenses as well.

It remains to be seen whether recent trends are a reflection of the ACA or of economic recovery independent of the healthcare law. Either way, it is a positive trend for every actor in the healthcare industry.

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Phil Cohen

About the author

Philip Cohen is the founder and President of PRN Funding, LLC. PRN Funding is an extraordinarily focused niche player in healthcare funding. With years of…... Read More

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