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Hospital Operating Margins Slide 39% After ACA Expansion
Health Leaders: Both nonprofit and for-profit health systems suffered significant operating margin declines associated with the expansion of the ACA between 2015 and 2017, according to a Navigant study released Wednesday morning.
Average operating margins declined 39% overall, including 34% for nonprofits and 39% for for-profits, while 47% of hospitals saw "significant deterioration of operating earnings" and 22 systems experienced three-year operating income declines of more than $100 million.
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