Impact of Proposed Medicaid Cuts on Rural Healthcare is Severe, Organizations Warn
On June 23, Families USA, a health consumer advocate, released a new report detailing how federal Medicaid cuts included in the current budget reconciliation bill would impact hospital revenues and drive independent rural hospitals to the brink of closure. Independent rural hospitals could lose an estimated $465 million in total patient revenue in 2026 due to federal Medicaid cuts, and because of those losses, could lose on average 56 percent of their yearly net income.
Families USA summarized in a press release that the analysis showed that just two of the many proposed cuts to federal Medicaid funding would harm the more than 700 independent rural hospitals delivering care across the country, putting them at significantly greater risk of closure or acquisition by large corporate systems.
Also on Monday, Families USA held a press briefing with health experts and rural health providers to discuss how the bill would affect healthcare consumers, patients, and providers, especially in those rural communities that will experience the biggest Medicaid cuts.
During the briefing, Anthony Wright, executive director of Families USA, emphasized that the Senate version of the budget bill could result in the termination of healthcare coverage for 16 million people, leading to increased costs of over $1 trillion. Wright expressed concern that the bill is being rushed through before July 4, with many congress members not knowing what they are voting for, and what the consequences of the bill may be in their respective districts. “All Americans will be harmed by these cuts,” Wright warned. “We need policy makers and the public to understand that this isn't just another vote in Congress, but the biggest cut to Medicaid ever, the biggest rollback of health coverage ever, and to understand these impacts.”
Sophia Tripoli, senior director of Health Policy at Families USA, noted that work requirements and eligibility checks could jeopardize the financial stability of over 700 rural hospitals, with 55 additional hospitals at risk of closure, including hospitals in Maine, Iowa, and West Virginia. This, she said, would leave a total of 380 independent rural hospitals nationwide at risk of closing.
Also on the call was Rich Sutphin, executive director of the West Virginia Rural Health Association. “These types of cuts are really going to be detrimental to communities within West Virginia,” he said. Sutphin gave an example of one hospital at risk of closure. “This hospital serves a six or seven-county area in Central West Virginia…they're the only provider for primary care, emergency care. They also run the emergency medical service and a skilled nursing facility. If this hospital were to close, those communities in those seven counties, comprising 1000s of West Virginians, would lose access to all of those services.” Furthermore, he explained, “Not only are they losing access to primary care, losing their Medicaid coverage, and probably delaying treatment for things like diabetes and heart disease…they're going to lose access to emergency medical services.”
“We can see what was in place before Medicaid expansion, which was that there was a much more significant share of Iowa adults who just didn't have insurance,” said Anne Discher, executive director with Common Good Iowa, about the anticipated effects of the bill in Iowa. “Iowa is home to over 80 critical access hospitals, and those are facilities designated by the Centers for Medicare and Medicaid Services (CMS) to ensure that underserved rural residents have access to necessary hospital services. That's among the most of any state in the country.”
“This bill betrays not just the rural Americans who voted for lower costs, but all Americans who need access to quality, affordable healthcare," Wright expressed in a statement.
