Hospitals Express Obamacare Skepticism, But Capex Increases

Hospitals have expressed widespread skepticism about Obamacare’s impact, but a survey of 2014 expectations shows that projected capital expenditures don’t seem to match the gloomy predictions.

“Only 60% of respondents in Medicaid-expansion states believe the combination of subsidized Obamacare exchange plans and Medicaid will reduce their uninsured patient volumes in 2014,” writes Citi analyst Gary Taylor, but “the stronger yty capex forecast seems to express more optimism than the specific Obamacare questions elicited.”

Obamacare rollout debacle

Taylor explains that the survey was taken in October/November last year in the midst of the Obamacare rollout debacle, which continues to haunt the administration despite some encouraging signs in December. Questions about Obamacare’s impact were probably influenced by the passing mood, while capex numbers may...