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Fact Sheet
December 2015

Medicaid: Supporting Doctors, Hospitals, and the Communities They Serve

Medicaid is an important source of funding for hospitals and health systems in communities across the country. A strong Medicaid program means stronger hospitals, nursing facilities, community health systems, and physician practices across the country—including those in rural areas and underserved communities. And a stronger health care system benefits all consumers, not just those with Medicaid coverage.

This fact sheet explains Medicaid’s importance to health care providers, including these findings: 


  • Medicaid is particularly important to safety net hospitals, accounting for 35 percent of the revenue for these hospitals. And more than three-quarters of safety net hospitals are also teaching hospitals.
  • Compared to urban areas, a higher percentage of rural residents rely on Medicaid.
  • Medicaid pays for half of all long-term care costs.
  • After private insurance, Medicaid is the second largest payer for pediatric care.