Tenet, Community Health Systems to benefit from Pennsylvania's Medicaid expansion

Approval of Pennsylvania's alternative Medicaid expansion plan could greatly benefit two major healthcare organizations: Dallas-based Tenet Healthcare Corp. and Franklin, Tenn.-based Community Health Systems, according to a report by Barron's.

On Aug. 28, Pennsylvania Gov. Tom Corbett (R) announced HHS approved the state's plan to launch Healthy Pennsylvania, a program that will use federal Medicaid expansion funding to promote affordable care and create greater access to healthcare for the uninsured.

By offering a Healthy Pennsylvania private coverage option through the commercial insurance market, the program will increase access to care for more than 600,000 state residents with incomes below 133 percent of the federal poverty level.

CHS stands to benefit from the expansion program more than any other health system, as it has 11 percent of its beds in Pennsylvania. The health system's beds in Pennsylvania account for approximately 12 percent of its revenues. With Pennsylvania expanding Medicaid, Community Health Systems has 34 percent of its beds in states that have expanded Medicaid, according to the report. 

Tenet Healthcare has approximately 4 percent of its beds in Pennsylvania. With the state expanding Medicaid, Tenet Healthcare has about 34 percent of its beds in states that have expanded Medicaid.

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