Republican Tax Bill Threatens Closure of 700 Rural Hospitals, Experts Warn

June 19, 2025
Republican Tax Bill Threatens Closure of 700 Rural Hospitals, Experts Warn
  • The recent Republican tax and spending bill poses significant risks to rural hospitals across the United States, potentially leading to widespread closures and access issues to healthcare.

  • Experts are sounding alarms about the fragility of the health system, warning that proposed cuts could extend travel times for patients seeking care, which is especially dangerous in emergencies.

  • If the proposed cuts are enacted, hospitals could face a staggering increase in uncompensated care costs, projected to rise by $204 billion over the next decade.

  • The interconnected nature of the healthcare network means that the closure of rural hospitals will not only affect local communities but also strain remaining facilities, resulting in overcrowding and increased financial pressures as uninsured patients seek care.

  • Since 2020, the trend of rural hospital closures has accelerated, with 36 hospitals shutting down, including 16 in just 2025, indicating a growing crisis in rural healthcare.

  • Proposed cuts to the provider tax and Medicaid programs could lead to a reduction of at least 11 million people on Medicaid, worsening the already precarious situation for over 700 rural hospitals at risk of closing.

  • The ramifications of these cuts are not limited to rural areas; urban hospitals that serve a significant number of Medicaid patients will also be affected, regardless of political affiliations.

  • Rural hospitals play a vital role in local economies, often being the largest employers in small towns, and their closure could trigger economic decline in these communities.

  • Several Senate Republicans, including Josh Hawley, Jim Justice, and Susan Collins, have voiced their concerns that the proposed bill will have a devastating impact on rural hospitals already facing closure.

Summary based on 1 source


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Source

Republicans Threaten a Hospital Apocalypse

The American Prospect • Jun 18, 2025

Republicans Threaten a Hospital Apocalypse

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