Medicaid Cuts Threaten Hundreds Rural Hospitals, Nursing Homes Nationwide

Recent federal Medicaid cuts included in the "Big Beautiful Bill" are raising serious concerns about the future of rural healthcare across the United States. States like Ohio and Pennsylvania face potential loss of Medicaid coverage for hundreds of thousands, with rural hospitals and emergency medical services operating on thin margins fearing closures and longer emergency response times. A study highlights that 579 nursing homes nationwide, including 93 in Illinois, are at risk of shutting down due to reduced Medicaid funding, threatening care for vulnerable populations. Hospital and health system leaders warn these cuts could destabilize already struggling facilities, leading to reduced access to care and potential shutdowns, especially in rural areas where Medicaid recipients make up a significant share of patients. Despite these challenges, there is anticipation that Congress may revisit and potentially adjust the cuts ahead of the 2028 presidential election, as hospital lobbying efforts intensify to seek relief. Meanwhile, smaller rural hospitals like Sharon Hospital in Connecticut illustrate the tangible impact of these funding reductions, underscoring the critical role Medicaid plays in sustaining rural health infrastructure.