The fight over expanding Medicaid in Florida and Texas could have a major effect on some of the country's biggest for-profit healthcare providers.
Both states have chosen not to expand Medicaid coverage, while the federal government has decided not to fund state waivers in favor of convincing the states to expand coverage. Florida is seeking a compromise, but the deal would still mean far less money for the state to support low-income patients. Texas will see its waiver expire in 2016.
Standard & Poor's doesn't have much hope the Republican-controlled states will expand, according to a recent report, which in the long term could sting big providers like Tenet, Hospital Corp. of America and IASIS.
[Also: For-profit hospitals see strong 1Q]
"The acute-care hospitals we rate have significant operations in Texas and Florida; however, exposure to waiver payments varies based on each hospital's payer mix," the report said. "We think there is little political appetite in either state to expand Medicaid at this time. While we see the potential for some event risk related to these issues, we also believe that both states are likely to seek a longer-term compromise with CMS that preserves access to funding."
Here's a look at how many beds the top six for-profits run in those states.
Twitter: @HenryPowderly