Republicans Threaten a Hospital Apocalypse

[Passages]

Experts warn of potentially hundreds of hospital closures, which would degrade the entire medical system.

by David Dayen June 19, 2025

As we at the Prospect have reported, while the Senate’s version of the Republican budget reconciliation bill was widely expected to be more moderate than the House one, when it comes to health care it is more extreme. This came as a surprise to many Republicans, some of whom now want changes. And they all are highlighting the same area of concern. It would be “potentially really bad for rural hospitals,” Sen. Josh Hawley (R-MO) told The Wall Street Journal. It’s “going to hurt our rural hospitals and hurt them in a big way,” said Sen. Jim Justice (R-WV). Sen. Susan Collins (R-ME) expressed “concerns about the effect on rural hospitals in her state.”

This is all certainly true. Senate cuts to the provider tax, a way for states to get more federal funding for their Medicaid programs, along with the House cuts that have been analyzed as leading to at least 11 million fewer people on the Medicaid rolls, will deeply harm the 700-plus rural hospitals already at risk of closure.

But that’s too narrow a frame. The entire health care provider network would come under heavy strain, and possibly collapse.

That’s because each node of the system is interdependent. If the 190 rural hospitals estimated in a recent Center for American Progress report as collateral damage of the Republican cuts close, all of their patients must find treatment at the remaining health care providers. Many of these new-arrival patients are likely to be uninsured (many thrown off Medicaid or Obamacare by Republicans), crushing hospital finances and potentially adding more closures on top.

https://prospect.org/health/2025-06-13-hospitals-senate-republicans-senate/

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