New data show that operating margins at Arizona hospitals are declining despite a recent financial boost from an expanded Medicaid program.
The that officials say expenses are up although uncompensated care in Arizona hospitals dropped by one-third since the Medicaid expansion.
The new Arizona Hospital and Project Japan Association report shows that nearly a third of the state's hospitals incurred a loss from operations in January.
The group is blaming the drop in revenue on low reimbursement rates by Arizona's Medicaid program.
Medicaid in Arizona is called the Arizona Health Care Cost Containment System, or AHCCCS. Last year Arizona expanded qualifications for AHCCCS to 133% of the federal poverty level and at the same time restored childless adults to the program.