About 25% of all New York hospitals, including some in the Hudson Valley, could face closure, layoffs or reduced services due to Medicaid cuts approved by Republicans in Congress and the Trump administration, according to the consumer watchdog group Public Citizen.
Nearly 450 hospitals nationwide, 45 in New York, are considered “at risk” after more than $900 billion in federal Medicaid and CHIP funding is expected to be slashed over the next 10 years through President Donald Trump’s so-called “big, beautiful bill,” the group noted in a report
State officials and hospital trade groups in New York estimated the bill would cost the state and its hospitals $13.5 billion a year in lost funding and added expenses and would lead to 34,000 lost hospital jobs statewide as well as an additional 29,000 lost health-related jobs.
The GOP’s package of federal tax and spending cuts “is an unprecedented assault on healthcare access for millions of Americans, particularly people who are low-income, disabled or elderly,” the report states.
“The impacts will be widely felt, including hospitals that already face financial strain and serve a disproportionate share of Medicaid patients,” Public Citizen added. “If those hospitals close, lay off staff, or cut down on services to make up for the losses, it will be the communities they serve that pay the price.”
Here’s what to know.
What makes a NY hospital ‘at risk’?
According to Public Citizen, hospitals are “at risk” if 20% or more of a hospital’s percentage of revenue from payers is from Medicaid and CHIP and if they’re spending more money than they’re bringing in, on average, between 2022 and 2024.
Data from the Healthcare Association of New York State (HANYS) reveals half of all New York hospitals are already operating in the red and they will take an estimated $8 billion annual funding hit once the bill is fully implemented.
“HANYS has grave concerns about the impacts of H.R. 1 on New York’s hospitals and the patients they serve,” said Amy Nickson, the organization’s senior vice president of state policy, referring to the GOP law.
“HANYS continues to urge state and federal policymakers to do everything they can to mitigate these reductions and protect patient access to care,” she added.
Greater New York Hospital Association president Ken Raske backed that data Monday, saying the federal measure “will take about eight-and-a-half billion dollars out of the revenue stream of New York hospitals.”
“That’s a lot of money since about half the hospitals to begin with are not making any money, they’re operating at a loss,” Raske added. “Once fully implemented, it would be hard pressed for any New York hospital that has any material amount of Medicaid to be able to break even, so the stakes are very high here for our hospitals.”
Raske’s organization, along with healthcare union 1199SEIU, has been actively working to cushion the impact of the cuts, which he says will affect all patients, not just those with Medicaid. He also says the more Medicaid volume a hospital has, the greater they could be impacted.
“Problem is, is that ultimately, you can’t eliminate the impact in its entirety,” Raske said. “All we can do is cushion it and help mitigate some of the impact, but I can’t eliminate it all, and that’s what worries me at night, is what residual impact on much-needed institutions. That is my nightmare.”
Which New York hospitals are at risk of closure, staffing cuts?
Here are the 29 hospitals outside of New York City and Long Island that have a high risk “of closing, reducing the medical services they provide, or laying off workers,” according to Public Citizen.
And these 16 “at-risk” hospitals are located in New York City or on Long Island:
Contributing: USA TODAY Network
Emily Barnes covers state government for the USA TODAY Network-New York with a focus on how policy and laws impact New Yorkers’ taxes, communities and jobs. Follow her on Instagram or X @byemilybarnes. Get in touch at ebarnes@usatodayco.com.
This article originally appeared on Rockland/Westchester Journal News: Mid-Hudson hospitals among dozens in NY at risk of closing due to Medicaid cuts
Reporting by Emily Barnes, New York State Team / Rockland/Westchester Journal News
USA TODAY Network via Reuters Connect
