Hospital closures loom

California hospitals struggle with costs related to Affordable Care Act

Experts are expecting many small- and mid-size California hospitals to close over the next decade as a result of costs associated with the Affordable Care Act.

In reaction to rising health-care costs, insurers are increasingly excluding certain hospitals and forming smaller networks of providers, making it difficult for small- and mid-size hospitals to negotiate deals with such networks, according to the Los Angeles Times. Further, smaller hospitals are struggling with ACA-related funding cuts and financial penalties for patient readmissions.

Jim Lott, executive vice president of the Hospitals Association of Southern California, said about 40 of California’s hospitals—roughly 10 percent —could close in the next 10 years.