Medicaid cuts put rural hospitals and seniors at risk

"Rural health care providers and facilities often need Medicaid reimbursements to stay open, and with cuts forcing states to make up the funding gap, many rural hospitals are at risk of closure. USA Today reported that advocacy groups estimate that 700 rural hospitals, along with many clinics and nursing homes, are at risk of closing in the next few years."

"As a response to concerns about rural hospital closures, the Senate has added $50 billion in funding for a new rural health transformation program. The initiative is set to release $10 billion annually over the next five years, with half of the money distributed evenly among states that choose to participate. The Centers for Medicare and Medicaid Services will determine how to allocate the remaining funds."

"Cuts to Medicaid won't fully take effect until after the 2026 midterm elections, but health care systems, which often budget a year or two ahead, are already seeing closures as a result. USA Today cited an announcement from a Nebraska community hospital that confirmed the closure of its clinic in the small town of Curtis, citing financial challenges such as the approved Medicaid cuts."

Medicaid funding cuts threaten rural health care financial viability, placing hundreds of hospitals, clinics, and nursing homes at risk of closure. Advocacy groups estimate about 700 rural hospitals face closure in coming years. A KFF estimate predicts federal Medicaid spending cuts will exceed $155 billion in rural areas over the next decade. Cuts largely take effect after the 2026 midterms, but budget planning and immediate financial strain have already prompted closures, including a Nebraska community hospital clinic. The Senate added $50 billion for a rural health transformation program releasing $10 billion annually for five years, but funds are not exclusively earmarked for rural facilities and may not offset projected losses.

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