How Much More? Hospitals and Health Systems Brace for the Impact of Medicaid Cuts

September 23, 2026
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The Coalition to Strengthen America’s Healthcare latest campaign, How Much More?, calls attention to the growing strain that many hospitals and health systems in America continue to face.

Patients deserve 24/7 access to quality care. However, federal cuts to Medicaid are causing hospitals and health systems to absorb billions in uncompensated care, straining the already thin margins many of them operate on. The One Big Beautiful Bill Act’s (OBBBA) pending Medicaid cuts will especially impact rural communities, which typically have a higher percentage of patients that rely on Medicaid coverage. 

Hospitals and health systems are bracing for the ripple effects of policy changes that could result in service line cuts and longer wait times for patients. In the worst cases, hospitals could close altogether, leaving many Americans facing longer travel times for care and some without healthcare access entirely. Ahead of November’s midterm elections, healthcare access continues to lead polling as a top concern for voters.

Impending limits to state directed payments are already threatening hospital and health system financial stability. OBBBA also will lower the cap on provider taxes, leaving states with less revenue to help fund Medicaid. Hospitals, especially those in rural communities, will be forced to operate with reduced resources, threatening patient access to care.

While the majority of cuts do not go into effect until early 2027, hospitals and health systems are already preparing for the worst. Some states are already seeing service reductions and closures. A rural hospital in Georgia closed its labor and delivery unit, partially citing cuts to Medicaid. In Maine, three labor and delivery units were shuttered at rural hospitals and one hospital closed entirely just in the past year.

How Much More? is a call to action to protect patients and spotlight the increasing pressure many hospitals and health systems face. The Coalition to Strengthen America’s Healthcare remains committed to raising awareness about how federal policy changes are affecting both hospitals and patients across the country. 

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