More than 300 hospitals nationwide could be at risk for closure under the Republican Tax Plan, according to analysis by the Cecil G. Sheps Center at the University of North Carolina. This comes after Reps. John James and Tom Barrett voted to implement nearly $1 trillion of cuts to Medicaid. Rural hospitals already operate on razor-thin margins, with many losing money on Medicaid patients—in 2023, hospitals received nearly $28 billion less from Medicaid than the actual cost of treating those patients.
While the legislation includes $50 billion over five years to help rural hospitals, advocacy groups warn this won't be enough to offset the massive funding cuts. As one nurse put it: "Our budget is pretty heavily reliant on the Medicaid reimbursement, so if we do see a cut of that, it'll be difficult to keep the doors open."
The impact on Michigan could be particularly severe given the state's rural healthcare landscape:
13 rural hospitals in Michigan are at risk of closing, including 5 that are at immediate risk.
Michigan hospitals are bracing for a hit of at least $6 billion over the next decade from federal cuts to Medicaid
In 18 of Michigan's counties — primarily rural — more than 40% of residents are covered by Medicaid
