A recent survey performed by the American Hospital Association shows that US hospitals continue to be adversely affected by the recession, even while the economy begins showing signs of recovery.   

Factors contributing to economic stress on hospitals included more patients enrolled in Medicaid or CHIP, which reimburse for services at a lower rate, and treatment of patients either lacking health insurance coverage or means to pay for treatment.   

The report is based on data collected during March and April from 572 non-federal, short-term acute care hospitals.

While Medicaid may reimburse at a lower rate, enhanced Medicaid funding to the states included in last year’s economic stimulus bill allowed many states to balance their budgets while experiencing higher Medicaid enrollments.

The AHA and other hospital associations have been lobbying Congress for an extension of enhanced Medicaid assistance to states, but the measure has run into opposition in the Senate over deficit concerns. 

Failure of Congress to extend enhanced Medicaid funding could cause states to reduce Medicaid enrollment, reimbursements or both, which would place further pressure on hospitals.

The AHA survey data also revealed that many patients are delaying or foregoing care, with 70% of hospitals surveyed reporting a lower incidence of patient visits and reduced elective procedures. 

As a result, hospitals have been slow to restore services and programs that were cut or scaled back due to the recession.

Aside from lower revenues, the survey found that many hospitals are having greater difficulty in accessing capital, causing them to delay or suspend facility improvements or expansions.