Federal Medicaid cuts could lead to rural hospital closures, research finds

Cuts to Medicaid and other federal health programs proposed in President Donald Trump’s budget plan would rapidly push more than 300 financially struggling rural hospitals toward a fiscal cliff, according to researchers who track the facilities’ finances (Source: “‘One Big Beautiful Bill’ Would Batter Rural Hospital Finances, Researchers Say,” Kaiser Health News, June 12).
 
The hospitals would be at a disproportionate risk of closure, service reductions, or ending inpatient care, according to a report authored by experts from the University of North Carolina, following a request from Senate Democrats, who released the findings publicly Thursday.
 
The study found that 11 hospitals in Ohio are at risk of closing.
 
Trump’s budget plan contains nearly $800 billion in Medicaid cuts, according to the nonpartisan Congressional Budget Office. House Republicans passed the bill in late May, and it now awaits Senate consideration.
 
The proposed cuts to Medicaid raise the stakes for rural hospitals nationwide, many of which already operate on razor-thin, if not negative, margins. Diminished reimbursements from the state-federal health insurance program for those with low incomes or disabilities would further erode hospitals’ ability to stay open and maintain services for their communities — populations with more severe health needs than their urban counterparts.
 
“It’s very clear that Medicaid cuts will result in rural hospital closures,” said Alan Morgan, CEO of the National Rural Health Association, a nonprofit advocacy and research organization.