Rural hospitals brace for financial hits or even closure under Republicans’ $1 trillion Medicaid cut
July 3, 2025
States and rural health advocacy groups are sounding the alarm that Congress’ slashing of Medicaid will devastate already financially fragile rural hospitals. One analysis estimates more than 300 hospitals could be at risk of closing under the Republican measure to slash about $1 trillion in Medicaid funding over ten years. Rural hospitals rely heavily on Medicaid reimbursements and are already financially strained. While the measure includes $50 billion to help make up the loss to rural hospitals, advocates worry it won’t offset the funding shortfall. No state stands to lose more than Kentucky. One report estimates the state would lose a whopping $12.3 billion over 10 years.
