Long Island Hospitals Face Cuts Due to Medicaid Funding Reductions

Report identifies 45 New York hospitals, including Nassau University Medical Center, at risk of service reductions or closures.

Apr. 14, 2026 at 12:37am

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A translucent X-ray image showing the internal structure of medical equipment and hospital infrastructure, conceptually representing the financial vulnerabilities of safety-net hospitals dependent on Medicaid funding.An X-ray view reveals the fragile financial state of hospitals relying heavily on Medicaid funding as they face potential service cuts or closures.East Meadow Today

A new report from consumer advocacy group Public Citizen has identified three Long Island hospitals, including Nassau University Medical Center, as being among 45 in New York state and 446 nationwide that are at risk of reducing services or closing due to federal Medicaid funding cuts enacted through the One Big Beautiful Bill Act passed in 2025.

Why it matters

The Medicaid program covers a significant portion of hospital spending in New York, and cuts to this critical funding could have devastating impacts on safety-net hospitals that serve low-income and disabled populations. The potential closures or service reductions at these vulnerable hospitals raise concerns about access to care, especially in underserved communities.

The details

According to the report, hospitals were identified as at-risk if they derived 20% or more of their revenue from Medicaid or other low-income government programs and were operating at a net loss between 2022 and 2024. In 2024, 65% of Nassau University Medical Center's spending was supported by Medicaid programs. The report predicts that vulnerable hospitals face a higher risk of layoffs, service reductions, or even closure due to the Medicaid funding cuts.

  • The One Big Beautiful Bill Act, which included the Medicaid cuts, was passed by Congress in July 2025.
  • The report analyzed hospital financial data from 2022 through 2024.

The players

Public Citizen

A nonprofit consumer advocacy organization that focuses on public interest, corporate accountability, and democracy.

Nassau University Medical Center

A hospital in East Meadow, New York that was identified as one of the 45 hospitals in the state at risk of reducing services or closing due to Medicaid funding cuts.

Stony Brook University Hospital

A Long Island hospital that was also identified as being at risk in the Public Citizen report.

Mercy Medical Center

Another Long Island hospital that was identified as being at risk in the Public Citizen report.

Eileen O'Grady

The researcher for Public Citizen and author of the report on hospitals at risk due to 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 that are already plaguing rural and safety-net hospitals – compromising their ability to deliver care, potentially leading many to close.”

— Eileen O'Grady, Researcher, Public Citizen

“Congress should take urgent action to restore all Medicaid funding cuts enacted by Trump and Republicans in Congress, and should extend the enhanced premium tax credits for coverage through the Affordable Care Act marketplaces.”

— Eileen O'Grady, Researcher, Public Citizen

What’s next

The report calls on Congress to restore the Medicaid funding cuts and extend the enhanced premium tax credits for Affordable Care Act coverage in order to support vulnerable hospitals and protect access to care.

The takeaway

The potential closure or service reductions at these safety-net hospitals due to Medicaid funding cuts raise serious concerns about equitable access to healthcare, especially for low-income and disabled populations in underserved communities on Long Island.