Medicaid Cuts Put Over Four Hundred US Hospitals at Risk of Closure
“We’re seeing hospitals that are already under severe financial strain having to make decisions about how to stay financially solvent,” said Eileen O’Grady, a researcher in Public Citizen’s Congress Watch division. She added, “That has pretty clear implications for people who live in that community. It also has ripple effects on other hospitals in those communities.”
The analysis examined 2022–2024 financial data from the Centers for Medicare and Medicaid Services, covering roughly 95% of US hospitals. Facilities deemed at-risk were those heavily reliant on Medicaid revenue and operating at a loss in recent years, with a total of 446 hospitals identified. At least one affected facility exists in 44 states and Washington, DC.
Projected Medicaid reductions, including work requirements in 2027 and funding caps in 2028, could lower federal spending by $1 trillion over the next decade. Around 60% of the at-risk hospitals, or 267 facilities, are in urban areas, disproportionately impacting Black and Latino communities.
Zachary Levinson, project director of the KFF Project on Hospital Costs, warned that the cuts could exacerbate the crisis, with Medicaid losses far outstripping the $50 billion allocated for rural support. Some health system executives have described the policy as an “existential threat.”
Alameda Health System has announced plans to lay off nearly 300 staff and expects to lose over $100 million annually by 2030. Meanwhile, Michigan-based Trinity Health, with facilities in multiple states, anticipates $1.5 billion in losses, leading to staff reductions and service cuts at some locations.
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