Running head: EXECUTIVE BRIEF:ACA
Executive Brief: ACA
Zaid Naima
Walden University
EXECUTIVE BRIEF: ACA
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Executive Brief: ACA
Introduction
The University of Kansas Hospital Health System, TUKH, is a nonprofit, academic
medical center located in Kansas, United States. The ACA's goal is to help remedy the situation
of the majority of Americans who cannot afford healthcare coverage, and this can be done by
providing access to a better healthcare coverage which will, in turn, help to improve the
healthcare conditions of Americans significantly (Bowling et al., 2018). Given that TUKH is in
Wyandotte County, which is historically a low-income county, the impact of ACA will have on
the organization must be examined. Furthermore, a large percentage of patients are out-of-state
patients will also have a significant impact on the financial, operational, and clinical operations
of TUKH.
Financial Impact on TUKH
TUKH operating margins will be improving due to the safety-net clinics, as the safety-net
clinics in Medicaid expansion states operated with better margins than those in states that did not
expand. Examining historical data from TUKH, would indicate that from 2012 to 2015.
operating margins for safety-net clinics increase from --2.4 percent to --1.8. The increase can be
accounted for the increased Medicaid revenues and reduced uncompensated care costs(Annual
Reports at The University of Kansas Health System, 2019). The improved financial
steadiness of safety-net clinics will allow TUKH to continue increasing outpatient volume,
realign strategies to enhance care, and develop better quality control to monitor costs. These
improvements not only benefit TUKH, but it also fulfills the mission and values of serving the
community.
Operational Impact On Cost Structure and Reimbursement Rates
EXECUTIVE BRIEF: ACA
One study, found that 69 percent of federally qualified health centers in Medicaid
expansion states were significantly more likely to report financial stability and funding
improvement since the implementation of the ACA, as well as being better suited to deliver
behavioral health and social services (Joseph, et al., 2016). Another study showed that the post
ACA period was related to a significantly lower uninsured rate (p < 0.001). At the same time,
there was a significant increase in Medicaid patients. This was associated with significantly
improved hospital reimbursements (p < 0.001) (Rosenbaum, 2011). Hence, TUKH will benefit
from the better reimbursements rates, an increase in patient volume and utilization of clinics run
by the hospital.
Clinical Impact
The implementation of ACA has led to a decrease in the number of uninsured trauma
patients. This was associated with an increase in TUKH reimbursements that substantially
enhanced the financial revenues. Recent studies have shown that implementation of ACA has the
potential to substantially improve the financial outcomes of trauma centers through Medicaid
expansion, which can apply to TUKH ("Hospital Reimbursements and the ACA - Health
Professionals & Allied Employees", 2016).
Clinical Impact on Physicians
Overall, a report published by the American Medical Association demonstrates that most
physicians see a range of patients by coverage type, though there are some marked differences
based on specialty. In 2016, o