Analysis: Rural hospitals at risk due to cuts in OBBBA

Data from the Cecil G. Sheps Center for Health Services Research at the University of North Carolina at Chapel Hill shows that health care cuts under consideration in the One Big Beautiful Bill Act (H.R. 1) could place over 300 rural hospitals across the U.S. at risk of closure, conversion or service reductions. The data was requested and released June 12 by Senate Democrats. “Substantial cuts to Medicaid or Medicare payments could increase the number of unprofitable rural hospitals and elevate their risk of financial distress,” the Cecil G. Sheps Center for Health Services Research wrote in response to a request for information on the OBBBA’s impact on rural hospitals. “In response, hospitals may be forced to reduce service lines, convert to a different type of healthcare facility, or close altogether.”