A Hospital Crisis Is Growing in Pennsylvania
25 hospitals have closed – with more closures on the way given the nearly $1 trillion in federal Medicaid cuts
In Pennsylvania:
25 hospitals have closed since 2016.
Up to 14 more could reduce services or close within the next five years.
51% of hospitals operate below sustainable margins.
37% are already operating at a loss.
Why is this happening?
Trump’s “One Big Beautiful Bill Act” cuts nearly $1 trillion from Medicaid over the next decade and tightens eligibility requirements, reducing coverage and payments for care patients still need.
At the same time, Medicaid reimbursement in Pennsylvania doesn’t cover the full cost of care. Hospitals receive about $0.87 for every $1 they spend on inpatient and outpatient services, leaving a funding gap.
Medicaid provides coverage for nearly 1 in 4 Pennsylvanians, but these cuts affect everyone. Hospitals lose revenue, uninsured rates rise, and health outcomes worsen, driving up private insurance premiums.
Hospital closures also mean people must travel farther for care and rely on hospitals with fewer emergency and specialty services.
Rural communities are hit the hardest, as they already operate on tighter budgets, have older populations, and rely more heavily on government-funded insurance. When these hospitals close, access to care disappears for entire regions.
But Pennsylvania isn’t the only state where hospitals are closing.
Communities across the country are facing the same reality as hospitals reduce services or shut their doors entirely.
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