(The following statement was released by the rating agency)
NEW YORK, October 28 (Fitch)
Hospitals and healthcare systems operating in states not
under the Patient Protection and Affordable Care Act (ACA) will
greater financial challenges and rating pressure than those
operating in states
expanding Medicaid, according to a Fitch Ratings report.
"Hospitals operating in states not expanding Medicaid, which
usually have higher
uninsured and poverty rates, will have to absorb the full impact
of the ACA
reimbursement cuts without the full benefit of increased insured
Adam Kates, Director in Fitch's Public Finance group.
Texas, Florida, Georgia, Louisiana, Mississippi, and South
Carolina are not
expanding Medicaid and have among the highest uninsured and
poverty rates, and
some of the most stringent Medicaid eligibility requirements.
hospitals in these states, particularly those with weak payor
mixes, will be
Hospitals located in affluent areas with stronger payor mixes
are likely to
absorb non-expansion of Medicaid better than hospitals with weak
Several mitigating factors exist, however, including the ability
of a state to
expand Medicaid in the future, the fact that reimbursement
reductions will be
implemented over a period of time, and the redistribution of
share hospital funds to hospitals with the highest uncompensated
For more information, a special report titled "Adverse
States and Medicaid" is available on the Fitch Ratings web site
www.fitchratings.com, or by clicking on the link.
Fitch Ratings, Inc.
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Chicago, IL 60602
Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549,
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: Adverse Expansion:
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