News Headlines Article

A Medicare tourniquet: How hospitals try to heal cuts that bleed away profits
Modern Healthcare

Up until 2012, before the Affordable Care Act began cutting revenue, a majority of tax-exempt hospitals in Southeast Michigan made profits on their Medicare business, according to a Crain’s analysis of selected IRS Form 990s from 2011 to 2013.

Since then, those profits — or surplus over expenses, as measured by the Internal Revenue Service — have been slowly evaporating for some of the 15 hospitals and multihospital systems in metro Detroit. The primary reasons: reimbursement cuts, readmission penalties and overpayment recoveries.