Trump's Medicaid Rollback Could Imperil Hundreds Of Hospitals

New report finds nearly 450 hospitals at high risk of closure or service cuts due to $900 billion in Medicaid and CHIP reductions.

Mar. 31, 2026 at 1:25pm

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A ghostly, translucent X-ray photograph revealing the intricate internal structures and wiring of a hospital bed frame and medical equipment, conveying the fragility of the healthcare system.An X-ray view of the delicate infrastructure that sustains America's hospitals, now at risk of collapse under proposed Medicaid cuts.Oakland Today

A new report from watchdog group Public Citizen warns that nearly 450 hospitals across the U.S. face a high risk of closing or cutting services due to over $900 billion in cuts to Medicaid and the Children's Health Insurance Program (CHIP) under President Trump's One Big Beautiful Bill Act. The at-risk hospitals collectively served nearly 7 million patients in 2024 and employ around 275,000 direct patient care workers.

Why it matters

Medicaid currently covers about a fifth of all hospital spending, so these proposed cuts would have a devastating impact, especially on rural hospitals and those serving predominantly Black and Latino communities. The healthcare industry is already feeling the strain, with hospitals laying off staff and scaling back critical services like maternity and mental health care.

The details

The report found that more than a quarter of all hospitals are at high risk in several states, including Connecticut, California, New York, Massachusetts, and Washington. Industry groups warn the cuts could lead to losses of over $1.5 billion for major health systems like Trinity Health, and over $100 million annually by 2030 for safety-net providers like Alameda Health System in Oakland.

  • The report was released on March 31, 2026.

The players

Public Citizen

A nonprofit consumer advocacy organization that released the report warning about the impact of Medicaid cuts on hundreds of U.S. hospitals.

Eileen O'Grady

A researcher and report author at Public Citizen.

Trinity Health

A major health system that projects losses of $1.5 billion due to the proposed Medicaid policy changes.

Alameda Health System

A safety-net hospital system in Oakland, California that announced nearly 300 layoffs and projected losses exceeding $100 million annually by 2030 due to the Medicaid cuts.

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What they’re saying

“Trump's cuts to Medicaid will hurt millions of low-income and disabled Americans, and will deepen financial strains already plaguing rural and safety-net hospitals.”

— Eileen O'Grady, Researcher and report author at Public Citizen

The takeaway

This report highlights the devastating impact the proposed Medicaid cuts could have on hundreds of hospitals, especially those serving vulnerable populations in rural and underserved communities. It raises serious concerns about the potential for widespread hospital closures and service reductions that would leave millions without access to critical healthcare.