HCA now expects up to $1.2B hit from ACA headwinds

Nashville, Tenn.-based HCA Healthcare estimates changes to the ACA environment will cost it from $1 billion to $1.2 billion in 2026, up significantly from an April estimate of $600 million to $900 million, according to July 14 preliminary financial results.  The hit is partly offset by a Medicaid Supplemental Payment Programs reversal, which HCA expects to add $300 million to $500 million in revenue, versus a loss of $50 million to $250 million this year. HCA’s uninsured volume increased in the second quarter as patients lost coverage on ACA health insurance exchanges, driving a payer mix shift. The system estimates this had an impact on earnings before income taxes of approximately $400 million in the second quarter. This includes a $75 million increase to the company’s prior first-quarter estimate of the health insurance exchange impact. A smaller service mix shift, tied to declining surgical volume, also impacted results. “As we look to the balance of the year, we have adjusted our guidance to reflect these factors,” Sam Hazen, CEO of HCA Healthcare, said in a news release. “Moreover, we remain confident in our ability to navigate through this dynamic environment, maintain our focus and investments on improving patient care, and execute on our strategic plan to digitize and grow our healthcare networks.” HCA operates 189 hospitals and approximately 2,600 ambulatory care sites in 19 states and the United Kingdom. It has more than 320,000 employees, according to its website .  The post HCA now expects up to $1.2B hit from ACA headwinds appeared first on Becker's Hospital Review | Healthcare News & Analysis .