Trump’s Medicaid Cuts Threaten Hundreds of Hospitals with Closure
WASHINGTON, D.C. – Nearly 450 hospitals face a high risk of closing or reducing services due to more than $900 billion in cuts to Medicaid and the Children’s Health Insurance Program (CHIP) that were part of the One Big Beautiful Bill Act, according to a new report from Public Citizen released today.
Rural hospitals and those that serve Black and Latino patients are disproportionately harmed by the cuts. More than a quarter of all hospitals are at risk in the following five states: Connecticut, California, New York, Massachusetts, and Washington.
“Trump’s cuts to Medicaid will hurt millions of low-income and disabled Americans, and will deepen financial strains that are already plaguing rural and safety-net hospitals – compromising their ability to deliver care, potentially leading many to close,” said Eileen O’Grady, a researcher for Public Citizen and author of the report. “Congress should take urgent action to restore all Medicaid funding cuts enacted by Trump and Republicans in Congress, and should extend the enhanced premium tax credits for coverage through the Affordable Care Act marketplaces.”
The at-risk hospitals identified in the report collectively served almost seven million patients in 2024, with nearly 70,000 beds and about 275,000 direct patient care workers. Compared to other hospitals, the communities they serve have a larger share of Black and Hispanic residents as well as people living below the poverty line. In recent months, many hospitals across the country have initiated layoffs and reduced services like obstetrics and maternal care, citing financial strain imposed by Medicaid cuts.
Nearly 200 at-risk hospitals are located in districts held by House Republicans who voted for the Medicaid cuts, and nearly 150 are in states represented by Senate Republicans, all of whom voted for the Medicaid cuts. Republicans represent several of the congressional districts with the highest number of at-risk hospitals. And almost half of the at-risk hospitals have special Medicare payment designations that are typically associated with rural and financially vulnerable hospitals that play a critical role in the communities they serve.