Ohio hospitals awaiting answer on Medicaid expansion

The Supreme Court's ruling that Medicaid expansion under the ACA is optional for states means hospitals in Ohio and across the nation will face months of uncertainty as state policymakers decide how to move forward (Source: "Ohio Medicaid expansion uncertainty raises questions for MetroHealth, Cleveland Clinic, others," Cleveland Plain Dealer, July 15, 2012).

Part of the concern for hospital officials in Ohio is that they agreed to a reduction in state and federal payments with the expectation that Medicaid expansion under the ACA would lead to increased revenue.

"Part of the justification for reducing rates is that we would have fewer people with uncompensated care. . . . you're going to have less charity care because more people are covered," said Steve Glass, chief financial officer for the Cleveland Clinic, adding "the concern the providers are going to have is if the state doesn't expand the Medicaid program."

Officials in the Kasich administration have not indicated whether they favor the Medicaid expansion or not, and there is no federal deadline for a decision to be made.

Last week HPIO released a policy brief (pdf, 8 pages) outlining the Supreme Court's decision and it's impact on Ohio, with a focus on the choice to expand Medicaid coverage.