February 1, 2026policy changehealthcare policyMedicaidrural healthhospital financinghealthcarefiscal policyrural communities
Medicaid Cuts in OBBBA Put 380 Rural Hospitals at Risk of Closure
A Families USA analysis found that 380 independent rural hospitals across 26 states face serious risk of closure if the One Big Beautiful Bill Act Medicaid cuts take full effect. The 380 hospitals could lose an estimated $465 million in total patient revenue in 2026, averaging $630,665 per hospital and up to 56% of yearly net income. KFF separately estimated OBBBA cuts would reduce federal Medicaid spending in rural areas by roughly $137 billion over a decade, far exceeding the $50 billion rural health fund set aside in the law.