The September 15, 2017 edition of Beckers Hospital Review listed 22 healthcare bankruptcies thus far in 2017. Also I note that bonds of various hospitals are being downgraded by SP, Moodys and Fitch, to junk, and to lower-grade junk.
I am aware of 2 problems that are squeezing the cash flow of hospitals, and forcing some to close or restructure in bankruptcy.
1. Over the past 2 years, according to a press release by Acadiana Management Group (AMG), the operator of 16 post-acute hospitals in IN, IL, OK, KS, and AL, they experienced a 40% reduction in Medicare Reimbursement Rates.
2. The Affordable Care Act contained a mandate, so it was assumed that all patients admitted to hospitals would have insurance coverage. Therefore, there would no longer be a need to subsidize hospitals for the uncompensated care they performed for the uninsured. The problem arose when individual health insurance premiums increased. From 2013 to 2017 the average increase was 113%, with the greatest increases in the states of AL 225%, AK and OK 200%, AZ 180%, TN and NC 175%. In response, consumers opted for higher-deductible policies, culminating in more bad debt for the hospitals... and no more subsidy.
It is not my intention to "blame" government (or anybody) for this state of affairs. I am starting this thread to see what people's perceptions are. Is the quality of life in your community threatened, or diminished because local healthcare facilities are less than able to make it as going concerns? None of us are getting any younger, so we probably will need more, rather than less healthcare.
Also, I would hope to hear of communities where healthcare is actually improving and increasing in availability. Maybe there's an app for that! <wink>