Obamacare's Newly Insured Boost Hospital Profits

Tuesday, 05 Aug 2014 07:31 AM

By Elliot Jager

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Hospitals are profiting from additional business resulting from the Affordable Care Act while employers and insurers are being hit by additional costs, The Wall Street Journal reported.

Previously uninsured patients are making more visits to emergency rooms, seeking maternity care and having long-postponed operations.

One company attributed a third to one-half of its profit gains to Obamacare, the rest to other factors including more people entering the job market, the Journal reported.

Hospital companies report patient volume up, uninsured admissions down, and overall profits rising.

HCA Holdings Inc., the largest publicly traded hospital company, said its second-quarter revenue rose 9.2 percent, the Journal reported.

Other winners include companies that supply hospitals.

Insurance companies were the big losers. They have absorbed patients whose medical needs are costlier than forecast. Previously uninsured enrollees are less healthy and are catching up on pricey cancer and surgical procedures.

Insurers say the current economic model is unsustainable and look for the mix of enrollees to shake out and become healthier over time.

The law has also resulted in higher health costs for employers in the form of new taxes on insurance premiums.

Hospitals that treat poorer populations are not seeing an uptick in new business and have not profited from the new law. In fact, with the implementation of Obamacare, New York City's Maimonides Medical Center lost the $13.5 million it had been getting to treat the uninsured.

No one is saying that hospitals will continue to do well, or that insurers will not find ways to profit from the law. With more changes in the pipeline, it is too early to tell what will happen when government payments are cut.

Glenn Steele of Geisinger Health System in Pennsylvania said, "I have a feeling we're going to go through an incredible amount of tumult for the next probably five to 10 years," the Journal reported.

Related Stories:


© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Oil Price Fall Challenges US Shale Boom

Sunday, 23 Nov 2014 10:16 AM

The US shale boom, which has challenged the rules of the global petroleum market, could soon face its own day of reckoni . . .

Buffalo Residents Urged to Prepare for Flooding

Sunday, 23 Nov 2014 08:58 AM

Buffalo is making significant progress clearing streets still clogged from an epic storm left more than 7 feet of snow e . . .

Obama, Jeter Tee off on Exclusive Vegas Course

Sunday, 23 Nov 2014 07:47 AM

President Barack Obama is playing golf at an exclusive Las Vegas-area course with a retired shortstop, a Democratic Part . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved