Wisconsin hospitals' bad debt declines 34%

Statewide, Wisconsin hospitals' bad debt decreased 34 percent and charity care decreased 46 percent from 2013 to 2015, which is largely attributed to an increase of insured residents through the ACA, reported The Journal Times.

 

In the two-year period, bad debt decreased from $285 million to $188 million and charity care fell from $328 million to $176 million, according to the report, which cited information from the Wisconsin Hospital Association.

Both stark declines are attributed to higher insured rates under the ACA. According to the U.S. Census Bureau, Wisconsin's uninsured rate dropped 38 percent from 2013 to 2015.

Although hospitals saw bad debt and charity care decline, those gains have been offset by Medicare reimbursement cuts, Brian Potter, senior vice president for finance at the Wisconsin Hospital Association, told The Journal Times.

The ACA "moved the bucket from dollars in charity care to Medicare shortfalls and Medicaid shortfalls," Mr. Potter said.

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