Hospitals Struggle as Medicaid Cuts Hit Hard Across the U.S.

Providers shutting down services and laying off staff as GOP-backed cuts take toll on patient care

Published on Feb. 10, 2026

Got story updates? Submit your updates here. ›

The ramifications of the GOP gutting $1 trillion from Medicaid and the Affordable Care Act are playing out across the country, with hospitals, maternity wards, nursing homes, and other critical providers at risk of cutting services or shutting down altogether. In Iowa, 34 frontline health care workers are being laid off. In Indiana, 48 health care workers are being let go, and a maternity ward is closing. In Pennsylvania, up to 14 hospitals could close due to the funding cuts. Nationwide, more than 700 hospitals, clinics, and other providers face the threat of reduced services or closure.

Why it matters

The GOP's cuts to Medicaid and the ACA are having devastating impacts on hospitals, health care workers, and patient access to care, especially in rural and underserved communities. This is creating a major health care crisis that will have long-lasting consequences for families and communities across the country.

The details

The GOP-backed cuts to Medicaid and the Affordable Care Act have resulted in widespread layoffs of health care workers, the closure of maternity wards and other critical services, and the risk of up to 14 hospitals shutting down in Pennsylvania alone. Providers in states like Iowa, Indiana, and across the country are being forced to make difficult decisions that will limit access to care for millions of Americans.

  • The GOP gutted $1 trillion from Medicaid and the ACA in 2026.
  • In January 2026, 34 health care workers were laid off in Iowa.
  • In January 2026, 48 health care workers were laid off and a maternity ward closed in Indiana.
  • In 2026, up to 14 hospitals in Pennsylvania are at risk of closing.

The players

Senator Ron Wyden

A Democratic senator from Oregon who released a report exposing the devastating impacts of the GOP's Medicaid and ACA cuts.

Representative Frank Pallone, Jr.

A Democratic representative from New Jersey who released a report with Senator Wyden on the harmful effects of the GOP's health care cuts.

Got photos? Submit your photos here. ›

What’s next

Lawmakers and health care advocates are calling for the restoration of Medicaid and ACA funding to prevent further closures and service cuts at hospitals and other providers across the country.

The takeaway

The GOP's reckless cuts to Medicaid and the Affordable Care Act are creating a nationwide health care crisis, with hospitals, clinics, and other critical providers being forced to scale back services or shut down entirely. This is having devastating impacts on patient access to care, especially in rural and underserved communities, and will have long-lasting consequences unless the funding is restored.