The Poor Get Poorer: The Fate of Distressed Hosptials Under the Affordable Care Act
Norton Bankruptcy Law Adviser (No. 12)
December 2012
Many hospitals in the US operate with little or no profit margin and are heavily dependent on Medicare and Medicaid reimbursements. Although the Affordable Care Act makes those hospitals more likely to receive reimbursement by increasing the number of insured patients and decreasing the number of uninsured patients, significant cuts in Medicare and Medicaid
reimbursement rates will impact distressed hospitals in the future.
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