Many Utah hospitals will be able to absorb the reimbursement shortfall. However, the unpaid claims could have a major impact on rural hospitals, causing some facilities to forgo clinical investments, according to the report.
Moab (Utah) Regional Hospital CEO Jennifer Sadoff told the Desert News that her 17-bed hospital had about $350,000 in outstanding claims with Arches when it shut down. “Although a one-time loss this size won’t close our doors this year, a few years ago it very well could have,” said Ms. Sadoff.
Like many other co-ops, the collapse of Arches was primarily attributable to a shortfall under the Affordable Care Act’s risk corridor program.
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