The nation’s largest hospital chain may be feeling the waning benefits of the Affordable Care Act, even as it continues to become more profitable. Nashville-based HCA reported higher-than-expected numbers of uninsured patients during the first quarter.
“It’s up pretty significantly at a time when the economy is doing about as well as you could expect,” analyst Kevin Fischbeck from Bank of America pointed out on
a conference call with investors.
Chief financial officer Bill Rutherford told investors there’s no good explanation but contended the increase is manageable.
“Not really sure, but [I] imagine flu might have had an impact on this, as we saw increased traffic in the emergency room,” he said. “Really we don’t see anything structural here nor do I judge this increase to be a material factor for HCA.”
CEO Milton Johnson pointed out that the first quarter of 2017 was a “low water mark” for uninsured care by HCA at 6.8 percent, making this year’s jump more pronounced by comparison.
Of all admissions to the hospital, 7.4 percent were uninsured in the first three months of 2017. That’s a 10 percent increase in uninsured patients — a figure for-profit hospital chains watch closely since those bills rarely get paid.
More than 19 percent of HCA’s emergency room visits were from uninsured patients in the first three months of the year. The company notes that 70 percent of its uninsured patients live in Florida and Texas — two populous states that still haven’t expanded Medicaid for the working poor.
Other Nashville-based hospital chains have not yet reported their quarterly results, but HCA’s uptick mirrors the latest data from the Commonwealth Fund. A
tracking survey finds uninsured rates creeping back up since a low point in 2016. The non-partisan foundation blames congress for failing to fix Obamacare’s problems and removing a requirement that everyone buy insurance.
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