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Fourth Georgia Hospital Closes Due To Obamacare Cuts

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Friday, February 21, 2014

Fourth Georgia Hospital Closes Due To Obamacare Cuts


The fourth Georgia hospital in two years is closing its doors due to severe financial difficulties caused by Obamacare’s payment cuts for emergency services.


The Lower Oconee Community Hospital is, for now, a critical access hospital in southeastern Georgia that holds 25 beds. The hospital is suffering from serious cash-flow problems, largely due to the area’s 23 percent uninsured population, and hopes to reopen as “some kind of urgent care center,” CEO Karen O’Neal said.


Many hospitals in the 25 states that rejected the Medicaid expansion are facing similar financial problems. Liberal administration ally Think Progress has already faulted Georgia for not expanding Medicaid as Obamacare envisioned.



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The federal government will cover 100 percent of the cost of adding new adult Medicaid beneficiaries from 2014 to 2016.

The federal government will scale down its payments to 95 percent in 2017, 94 percent in 2018, 93 percent in 2019, and 90 percent in 2020, according to the National Conference of State Legislatures.

The 90 percent level is permanent. States will not have to shoulder more than 10 percent of the cost after that, unless Congress passed a law to change the ratio.

This will mean additional costs for states after 2020. This is why states refused to join. If the feds picked up the entire tab forever they would have joined.

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