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In states that didn’t expand Medicaid, hospital closures have spiked

For hospitals, it’s increasingly difficult to stay in business — even more so in states that didn't expand Medicaid, a new analysis finds.
Five hospitals have closed in Alabama since 2010. Wedowee Hospital, shown here, was among the lucky ones. The financially struggling hospital closed in November, but was replaced by a new facility nearby.

In recent years Obamacare’s Medicaid expansion has created a financial fault line in American health care. Hospitals in states that enacted the expansion got a wave of newly insured patients, while those in states that rejected it were left with large numbers of uninsured individuals.

A new released Monday reports a crucial consequence of that divide: Nonexpansion states have suffered a significant increase in hospital closures. States that expanded benefits, on the other hand, saw their rate of closures decline.

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