FOR IMMEDIATE RELEASE
Statement attributable to:
Bruce Siegel, MD, MPH
President and CEO
America’s Essential Hospitals
Washington, D.C. – Passage of this misguided bill has unleashed chaos on the U.S. health care system, and the dire consequences will be felt for quite some time. Millions of Americans will see their health care coverage vanish through burdensome Medicaid work requirements and other eligibility changes throughout the bill. Hospitals across the country have been destabilized, affecting their ability to serve patients and their communities. We are in a crisis.
The bill’s restrictions on state directed payments and provider taxes cut off critical financial lifelines for hospitals, and at the same time millions of Americans will lose their Medicaid coverage. Widespread coverage losses plus weakened hospitals is a recipe for disaster, and patients will pay the price.
The cuts will add $443.4 billion to hospitals’ uncompensated care costs from 2025 to 2034. State directed payments are a critical source of support for hospitals, particularly in rural areas, and provider taxes help reduce the gap between Medicaid and other payers, ensuring that physicians can take Medicaid patients and hospitals can be adequately staffed. Cutting these lifelines is not sustainable, and it will harm patients.
We will continue to work with lawmakers to find positive solutions to sustain and strengthen Medicaid and keep our hospitals open. Now more than ever, our hospitals truly are essential.
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About America’s Essential Hospitals
America’s Essential Hospitals is the leading association and champion for hospitals dedicated to high-quality care for all, including those who face social and financial barriers to care. Since 1981, America’s Essential Hospitals has advanced policies and programs that promote health and access to health care. We support our more than 350 members with advocacy, policy development, research, education, and leadership development. Communities depend on essential hospitals for care across the continuum, health care workforce training, research, public health, and other services. Supported by Essential Hospitals Institute, the association’s research and education arm, essential hospitals innovate and adapt to lead all of health care toward better outcomes and value.
Contact:
James Swann
Director of Communications
jswann@essentialhospitals.org
202.585.0102
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