Share this
How the ACA is Affecting Hospital Renovations
by HEPACART on Oct 13, 2015
The Affordable Care Act (ACA), also known as Obamacare, has had a major impact on virtually every aspect of the healthcare industry in the U.S. Hospitals in particular are only beginning to understand how this expansion of private insurance and/or Medicare to a much wider range of Americans will influence their businesses and bottom line.
When it comes to significant hospital renovations, there are many different factors that come into play but revenue and being able to afford those renovations is certainly key.
Demand for Care Means More Revenue
The ACA has led to a greater demand for care throughout the healthcare system. The addition of 17 million Americans to private insurance plans or expanded Medicare coverage means that there are simply more people who are able to go to the doctor or the hospital for basic care. An increase in patients, followed by an increase in insurance payments for treating these patients, means an overall increase in revenue for many hospitals. Of course, this improved revenue stream could be used for hospital expansion to serve these new patients and renovations for improved patient safety and comfort. So far there has been no indication that this is a trend in hospital renovation, but it is one factor to consider.
Other Considerations
Unfortunately, increase patient revenue is just one impact that the ACA has had thus far. If more revenue from privately insured patients meant a steadier - and bigger - stream of cash, a lot of renovations would probably be on the horizon. But that is simply not the case. Instead, other ACA provisions are either having their impact already or looming on the horizon. For example, one ACA provision allows for the decrease in the program known as the Medicaid Disproportionate Share Hospital payments. These payments are disbursed to those hospitals that shoulder more than their "fair" share of Medicare and non-paying patients. With the expansion of private insurance, it is thought that these payments should become less necessary across the country. Although these cuts have been pushed back to 2018, that kind of looming issue could certainly factor in when hospitals are deciding whether to plan or schedule large renovation projects.
Further, the overall reimbursement numbers for healthcare services have fallen, according to one financial expert. The decrease in reimbursement at the lowest level has an impact on the cash stores a hospital would have to expand and renovate, making these projects get pushed back until absolutely necessary.
Moving Forward
For contractors who work in hospitals, it is important to note that the long-term implications of the ACA will not be apparent for many more years. In the short term, renovation projects will most likely continue at a steady pace. As hospitals begin to determine what their year to year revenue will look like with Obamacare, upgrades and renovations are likely to become more common.
But money is not the only factor, either. As there continues to be an increase in outpatient care, the need for more hospital beds will decline. In some cases this may mean fewer expansion projects, but other instances may see conversions of inpatient areas to administrative offices or other types of repurposing, which will still mean work for hospital contractors.
Overall, it is too early to tell what long-term effects the ACA will have on hospital renovations, but keeping important factors like patient demand, Medicare reimbursement, and trends in healthcare should help contractors be able to keep ahead of the curve and be ready to fill their project pipeline.
Share this
- Infection Control (87)
- Dust Containment (67)
- Facility Management (63)
- Facility Construction & Renovation (41)
- Air Filtration & Disinfection (23)
- AnteRoom (15)
- Patient Safety (14)
- Indoor Air Quality (12)
- HEPAFORCE®AIR Negative Air Machines & Scrubbers (11)
- HEPAFORCE® GermBuster Room Air Purifiers (10)
- Healthcare (9)
- DUSTBUGGY® Dust Containment Cart (8)
- HEPACART® Dust Containment Cart (8)
- Cabling Access & Ceiling Access (7)
- UV-FORCE® Airborne Disinfection Module (7)
- STARC® Dust Containment Wall Barriers (6)
- Education (5)
- Healthcare Facility Construction & Renovation (4)
- About HEPACART (3)
- Electrical Installation & Repair (3)
- Surface Disinfection (2)
- February 2023 (1)
- January 2023 (5)
- December 2022 (4)
- November 2022 (4)
- October 2022 (4)
- September 2022 (3)
- August 2022 (2)
- July 2022 (2)
- June 2022 (2)
- May 2022 (2)
- April 2022 (2)
- March 2022 (2)
- February 2022 (2)
- January 2022 (2)
- December 2021 (2)
- November 2021 (2)
- October 2021 (2)
- September 2021 (2)
- August 2021 (1)
- July 2021 (3)
- June 2021 (2)
- May 2021 (2)
- April 2021 (2)
- March 2021 (2)
- February 2021 (2)
- January 2021 (2)
- December 2020 (2)
- November 2020 (2)
- October 2020 (2)
- September 2020 (2)
- August 2020 (1)
- July 2020 (2)
- June 2020 (1)
- April 2020 (2)
- March 2020 (1)
- February 2020 (1)
- January 2020 (1)
- December 2019 (2)
- November 2019 (2)
- October 2019 (2)
- September 2019 (2)
- August 2019 (2)
- July 2019 (2)
- June 2019 (5)
- May 2019 (2)
- April 2019 (1)
- March 2019 (1)
- February 2019 (1)
- January 2019 (1)
- December 2018 (2)
- November 2018 (5)
- October 2018 (1)
- September 2018 (2)
- July 2018 (2)
- June 2018 (4)
- May 2018 (5)
- April 2018 (1)
- March 2018 (2)
- February 2018 (2)
- January 2018 (2)
- December 2017 (2)
- October 2017 (2)
- September 2017 (1)
- July 2017 (5)
- June 2017 (4)
- May 2017 (5)
- April 2017 (2)
- March 2017 (5)
- February 2017 (4)
- January 2017 (2)
- December 2016 (3)
- November 2016 (9)
- October 2016 (4)
- September 2016 (2)
- August 2016 (3)
- July 2016 (4)
- June 2016 (3)
- May 2016 (5)
- April 2016 (3)
- March 2016 (5)
- February 2016 (4)
- January 2016 (4)
- December 2015 (3)
- November 2015 (5)
- October 2015 (5)
- September 2015 (2)
- August 2015 (5)
- July 2015 (3)
- June 2015 (4)
- May 2015 (4)
- April 2015 (4)
- March 2015 (7)
- February 2015 (1)
- October 2014 (1)
- September 2014 (2)
- August 2014 (2)
- July 2014 (1)
- June 2014 (1)
- May 2014 (2)