ObamaCare Will More than Double Profit Margins for Hospitals’ Emergency Departments
Think ObamaCare is all bad news for hospitals? Not according to a new study:
We estimated that hospital revenue from ED care exceeded costs for that care by $6.1 billion in 2009, representing a profit margin of 7.8 percent (net revenue expressed as a percentage of total revenue). However, this is primarily because hospitals make enough profit on the privately insured ($17 billion) to cover underpayment from all other payer groups, such as Medicare, Medicaid, and unreimbursed care. Assuming current payer reimbursement rates, ACA reforms could result in an additional 4.4-percentage-point increase in profit margins for hospital-based EDs compared to what could be the case without the reforms.
It will double profit margins because that’s where people will go to get their health care.
Perhaps the same reason why ER waits are going to increase. More people will go, profits will increase.
Well profits will increase as long as ERs get adequate compensation from what the expanded Medicaid will reimburse them
Uninsured people have always used the ER as primary care, because ERs have to see you, so that’s nothing new.
“Think ObamaCare is all bad news for hospitals?”
It won’t necessarily be bad news for hospitals, but it will be bad news for patients.
Especially as waits increase to see a primary care doctor, or even urgent care doctors. Hospitals see you right away and will write the script for antibiotics or what have you.
Sure its more expensive, but that’s what ObamaCare is for right?
Yeah and Medicaid expansion too. Free ER visits!
You would be surprised by the number of people that go to ERs instead of any other institutions for simple care.
The fact that ERs do make a profit probably explains why entrepreneurs are opening free-standing emergency rooms that are not associated with hospitals and compete with them by providing better service in areas not well served by hospital emergency rooms.