New York Times Article Cites HCFO-funded Study on Hospital Profitability and Mortality

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In a recent New York Times Upshot article, Austin Frakt, Ph.D., of The Incidental Economist reviewed evidence that suggests that Medicare payment cuts may lead providers to offset reductions in ways that could harm quality. He cited evidence a HCFO-funded study by Kevin Volpp, Ph.D., University of Pennsylvania, and colleagues that found that hospital services with lower profits from Medicare were associated with higher mortality rates. The Affordable Care Act introduced significant cuts to Medicare, and health care quality will need to be monitored for unintended consequences that might result from hospitals’ responses to financial stress and payment reductions.