Report Identifies 446 US Hospitals at Risk from Medicaid Cuts

A new report from Public Citizen has identified 446 hospitals across the United States at high risk of closure or service reductions due to planned cuts in Medicaid funding under a federal budget reconciliation package signed into law by President Donald Trump on July 4, 2025. The analysis, released on March 31, 2026, examined financial data from roughly 95 percent of U.S. hospitals between 2022 and 2024, highlighting facilities where Medicaid and similar low-income government programs account for at least 20 percent of revenue and that have reported negative profit margins in recent years.

The legislation, known as the One Big Beautiful Bill Act, is projected to reduce federal Medicaid spending by approximately $1 trillion over the next decade, according to estimates from the Congressional Budget Office. These cuts include phased implementation of work requirements for Medicaid eligibility starting in 2027 and restrictions on state funding mechanisms in 2028. Medicaid currently covers about one-fifth of all hospital expenditures nationwide, making the program a critical revenue source for many facilities.

The at-risk hospitals, located in 44 states and Washington, D.C., include...