Sheridan Memorial Hospital CEO Mike McCafferty is concerned that an expansion of Medicaid under the new Affordable Care Act will adversely affect hospitals across the nation.
During a presentation to Sheridan County legislators in a forum Wednesday morning, he predicted that the expansion of the federal government into insurance coverage means insurance companies will work harder to reduce what they pay for patient care.
He said Medicare and Medicaid both pay only a portion of what it costs hospitals to care for patients under those programs, and the Affordable Care Act – also called Obamacare – calls for expansion of the Medicaid program.
In an interview with Sheridan Media following his presentation to legislators, he elaborated on his concerns.
The hospital CEO told legislators that Medicaid currently pays only about 71 percent of patient care costs. Medicare currently pays just under 78 percent. Hospitals rely on self-paying patients and those who have commercial insurance to cover what they lose in Medicare and Medicaid revenues.
He told legislators that if hospitals lose those revenues they rely on, during the next 10 years as many as 1,000 hospitals might become casualties to the Affordable Care Act.