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Rural hospitals brace for financial hits or even closure under Republicans' $1 trillion Medicaid cut

  • The U.S. House approved a federal budget bill containing nearly $1 trillion in Medicaid cuts, and it awaits the president's expected signature on July 4, 2025.
  • These Medicaid reductions follow Senate approval earlier this week and include work requirements and a $50 billion fund aimed at supporting rural hospitals.
  • Hospital leaders in Nebraska and Oklahoma expressed concern about steep financial impacts, potential service cuts, and hundreds of thousands losing coverage, while the Oklahoma Hospital Association said cuts would not start until 2029.
  • Denise Webber, CEO of Stillwater Medical, expressed that the scale of these reductions is unprecedented in recent times, while NHA president Nordquist cautioned that once these services disappear, they will not return.
  • These changes could accelerate rural hospital closures, deepen healthcare access challenges, and prompt community opposition to the bill before states must apply for fund eligibility by December 31, 2025.
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Time Magazine broke the news in United States on Tuesday, July 1, 2025.
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