The Pennsylvania Health Care Cost Containment Council unveiled that more than 50% of the state's hospitals' profit margins have witnessed a decline. The margins have reduced and were lower than 4% for the year in half of the hospitals. In 2013, more than 33% of the hospitals across the state lost money.

The council believes that the trend would remain the same throughout 2014. There are a number of reasons for such losses and one of the main causes is the rising cost of uncompensated care. It is the type of care where patients do not have private or public insurance and are unable to pay.

In 2013, Pennsylvania hospitals have witnessed increase in number of cases of such type of treatment. The state hospitals have noticed a five percent increase in comparison to the percentage in 2012. It has been suggested that the Corbett administration should give up its resistance to the Affordable Care Act's expansion of Medicaid.

Also, it has rejected a portion of the federal health care law. But such is not the case in other states and they have started to reduce levels of uncompensated care and offer hospitals with revenue.

As per the Affordable Care Act, the Federal Government pays 100% of Medicaid expansion to include uninsured low-income workers for the first two years and also covers 90% of the cost after the two years.

The deal is considered to be a great one for states as the Federal Government is paying. In Pennsylvania, the scheme would have generated around $17 billion into the health care economy through 2019.