Medicaid Expansion and Rural Hospitals

Rural Hospitals Hurt by Denial of Medicaid Expansion
The articles referenced below reveal that rural hospitals and rural communities in states that did not accept Medicaid expansion are significantly hurt. This includes Wisconsin.

In “Lack of Medicaid Expansion Hurts Rural Hospitals More Than Urban Facilities,” Sefali Luthra looks at studies of the issue and concludes rural hospitals serve more low-income people who had no insurance before the Medicaid expansion. Since rural hospitals are historically more likely to operate at a loss than are urban ones, the chance to see increased revenue from Medicaid expansion is greater than in a city-based hospital.

The financial health of the rural hospital is also important since hospital finances matter for consumers, too. In rural communities, hospitals are often among the largest employers, and the main source of health care. Financial duress can affect what kind of services the facility offers.

In “Understanding the Relationship Between Medicaid Expansions and Hospital Closure,” Richard C. Lindrooth, Marcelo C. Perraillon, Rose Y. Hardy, and Gregory J. Tung use data for the period 2008–16 on hospital closures and financial performance. The authors found that the ACA’s Medicaid expansion was associated with improved hospital financial performance and substantially lower likelihoods of closure, especially in rural markets and counties with large numbers of uninsured adults before Medicaid expansion.

“Understanding the Relationship Between Medicaid Expansions and Hospital Closure,” by Richard C. Lindrooth, Marcelo C. Perraillon, Rose Y. Hardy, and Gregory J. Tung, Health Affairs, Vol. 37, NO 1: Culture of Health Medicare & More.
“Lack Of Medicaid Expansion Hurts Rural Hospitals More Than Urban Facilities,” by Sefali Luthra, Kaiser Health News, September 7, 2016. https://khn.org/news/lack-of-medicaid-expansion-hurts-rural-hospitals-more-than-urban-facilities/