The recent decision by the U.S. Supreme Court in King v. Burwell is good news for hospitals, which faced the threat of losing billions of dollars in patient revenue. The ruling upholds subsidies under the Affordable Care Act for individuals who buy insurance through federally sponsored exchanges.
A report from the Urban Institute projected that the hospital industry would lose $6.3 billion in revenue if the subsidies were struck down. Some insured patients would have dropped coverage, and bad debt and uncompensated care would have risen. The average hospital in a state that relied on a federal exchange could have lost more than $1 million in patient revenue per year, the report estimates.
The ruling should not have much of an impact on healthcare providers, as they will continue to implement strategies consistent with the ACA.
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