Medicaid cuts threaten hundreds of hospitals, new report finds
NBC News • • nation
Key Points:
- An analysis by Public Citizen warns that over 400 U.S. hospitals face high risk of closure or service cuts due to Medicaid funding reductions in President Trump's healthcare legislation, threatening access to care and thousands of healthcare jobs.
- The Medicaid cuts, phased through 2027 and 2028, are projected to reduce federal Medicaid funding by around $1 trillion over the next decade, with hospitals relying heavily on Medicaid revenue and already operating at losses being most vulnerable.
- At-risk hospitals are located in 44 states and Washington, D.C., with 60% in urban areas; Black and Latino communities are expected to be disproportionately affected by reduced hospital services.
- Hospital systems like Alameda Health System and Trinity Health have announced layoffs and service reductions in response to funding cuts, highlighting the financial strain and potential impact on essential services such as mental health and maternity care.
- Experts warn that hospital closures or cutbacks will reduce patient access to timely care, increase strain on remaining hospitals, and could have dangerous consequences for patient outcomes, especially in rural areas.
