12 New Jersey Hospitals Face Closure Risk After $911B Federal Medicaid Cuts

Hospitals serving low-income communities may be forced to cut services or shut down entirely due to federal funding reductions.

Apr. 17, 2026 at 6:37pm

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A ghostly, translucent X-ray image of a hospital bed frame, with the intricate internal structure glowing against a dark background, conceptually illustrating the vulnerable state of healthcare facilities facing potential closure.An X-ray view of a hospital bed frame highlights the fragile state of healthcare facilities facing potential closure due to federal Medicaid funding cuts.Bayonne Today

Twelve hospitals in New Jersey are among 446 facilities across 44 states and Washington, D.C., that may close, cut services, or lay off workers due to $911 billion in federal Medicaid funding cuts over the next 10 years. The cuts are part of the "One Big Beautiful Bill" signed by former President Donald Trump in 2025, which will significantly reduce federal Medicaid and CHIP spending nationwide.

Why it matters

The at-risk hospitals serve communities with larger shares of Black and Hispanic residents, as well as higher poverty rates, raising concerns about access to healthcare for vulnerable populations if these facilities are forced to close or scale back services.

The details

The 12 New Jersey hospitals identified as at risk of closure or service reductions include Palisades Medical Center, East Orange General Hospital, Inspiria Medical Center, St. Michael's Medical Center, Capital Health Regional Medical Center, Bayonne Medical Center, Clara Maass Medical Center, Trinitas Hospital, Robert Wood Johnson University Hospital, Monmouth Medical Center, Hoboken University Medical Center, and Newark Beth Israel Medical Center. These facilities had a Medicaid, SCHIP, and low-income government program payer mix of at least 20% on average from 2022 through 2024 and negative net profit margins over that same period.

  • The "One Big Beautiful Bill" was signed by former President Donald Trump on July 4, 2025.
  • The federal Medicaid funding cuts are set to take effect next year, 2026.

The players

Cathy Bennett

President of the New Jersey Hospital Association.

Governor Mikie Sherrill

The governor of New Jersey, who has included $7.2 billion in state funding for NJ FamilyCare in her budget.

Hudson Regional Health

The organization that closed Heights University Hospital in Jersey City last month and plans to issue layoff notices to nearly 1,000 employees of Bayonne Medical Center by June 29.

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What they’re saying

“Hospitals will absorb a growing burden of uncompensated care with fewer resources to sustain it. What begins as a funding reduction becomes, ultimately, a public health crisis that affects every community in the state.”

— Cathy Bennett, President of the New Jersey Hospital Association

What’s next

Governor Sherrill has proposed changes to her state budget that would increase the burden on corporations that employ people using Medicaid, in an effort to offset the federal funding cuts.

The takeaway

The impending Medicaid funding cuts at the federal level pose a serious threat to the financial viability of many hospitals in New Jersey, particularly those serving low-income and minority communities. This could lead to a public health crisis if these facilities are forced to close or significantly reduce services, limiting access to care for vulnerable populations.