AcademyHealth: Hospitals’ responses to Medicare cuts

In 2011, Center for Medicare and Medicaid Services (CMS) actuaries made two predictions about the implications of Affordable Care Act (ACA) cuts to the prices Medicare will pay for hospitals services: (1) that they will cause 15% of hospitals to become unprofitable in a decade and (2) that they will be half those of commercial market prices by 2040. Recent work suggests that only one of these predictions is likely to be correct. A review of how hospitals react to Medicare cuts reveals which. You’ll find that review, by me, on the AcademyHealth blog.



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