Health Insurance Expansion and Rural Hospital Finances: Evaluating the Impact of the Affordable Care Act in California

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Abstract/Contents

Abstract
The Patient Protection and Affordable Care Act (ACA) extended health insurance coverage to previously uninsured individuals, thereby altering reimbursement patterns at the hospital level. Given the historical financial difficulties of rural hospitals, this paper focuses on the effect of this insurance expansion on hospital inpatient payer mix and financial outcomes in rural settings. Using hospital-level data from 2006-2017, this paper utilizes a fixed effects regression and difference-in-differences study design to determine the effect of the ACA on rural hospital financial performance in California. I find a statistically significant decline in Medicaid payer mix and increase in private payer mix for rural inpatient services after the ACA. I also find significant reductions in Medicaid income per bed and uncompensated care cost, particularly in uninsured rural areas. However, overall profitability improved in rural hospitals after the ACA, suggesting the financial importance of private shares of payer mix to cover losses incurred by increased expenses of Medicaid patients.

Description

Type of resource text
Date created May 8, 2019

Creators/Contributors

Author Serrato, Paul Irvin
Degree granting institution Stanford University, Public Policy Program
Advisor Mark Duggan

Subjects

Subject Affordable Care Act
Subject Medicaid expansion
Subject California
Subject rural hospitals
Subject financial distress
Subject payer mix
Subject Stanford University
Subject Public Policy Program
Genre Thesis

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User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
License
This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).

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Preferred Citation
Serrato, Paul Irvin (2019). Health Insurance Expansion and Rural Hospital Finances: Evaluating the Impact of the Affordable Care Act in California. Stanford Digital Repository. Available at: https://purl.stanford.edu/pt830xd1767

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Stanford University, Public Policy Program, Undergraduate Honors Theses and Practicum Projects

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