AHA Report: Medicaid Cuts Threaten 300+ Rural Hospitals
The American Hospital Association reports that more than 300 rural hospitals face closure, conversion, or service cuts due to Medicaid reductions enacted under HR 1, which could cut federal Medicaid spending in rural areas by nearly $140 billion and raise uncompensated care costs by almost $20 billion. Roughly 16 million rural Americans and nearly half of rural births rely on Medicaid, which reimburses hospitals at less than 58 cents on the dollar. More than 40% of the nation's roughly 1,800 rural hospitals already operate with negative margins, and over 150 have closed or converted since 2010. The AHA notes these pressures compound with expiring ACA premium tax credits and low Medicare Advantage payment rates, which together could further erode rural hospital finances in 2026.