Explain how the PPACA will impact the two types of hospitals selected.

The Patient Protection and Affordable Care Act (PPACA) will have a major impact on two different types of hospitals – for-profit and nonprofit. As for-profits rely heavily on patient and insurance fees, they are vulnerable to the changes made in reimbursement policies. The PPACA’s provision requiring coverage of preventive care services with no deductibles or co-pays may result in decreased revenue due to less patients utilizing their services since they are now covered by insurance providers.

The PPACA will have a positive impact on nonprofit hospitals as these are more likely to focus on quality healthcare regardless of financial ability. As these organizations are heavily reliant on donations and government funding, the expansion of Medicaid will allow more people to access needed treatments. This in turn reduces overall costs. In addition, incentives like bonuses for meeting performance standards set out in the act encourage them to deliver better care and ensure sustainability in spite of any budget cuts.

Both types of hospitals are affected by PPACA differently. However, their needs must still be considered when implementing the new regulations.