Hospitals Face $25 Billion Revenue Loss from Medicaid Cuts Under OBBBA
Becker's Hospital Review
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Contributed by: Kate Gamble
Summary
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, is expected to create substantial financial challenges for hospitals in the U.S., with potential annual revenue losses of up to $25 billion due to significant Medicaid cuts. The legislation will lead to an estimated 14.2 million more uninsured Americans by 2034, exacerbating the strain on healthcare systems already burdened by rising self-pay patients. An analysis by Kodiak Solutions demonstrates that hospitals could see revenue decreases ranging from $1 million to $4 million each, depending on the rates of Medicaid disenrollment. These shifts highlight a critical need for healthcare professionals to adapt strategies for managing increased uninsured populations and financial instability.
