May 7, 2026 By Karen Mansfield 4 min read

A new analysis from consumer watchdog Public Citizen found that 446 hospitals are at high risk of closing or cutting services due to planned Medicaid cuts under President Donald Trump’s “One Big, Beautiful Bill.”

Included in the list of hospitals at risk as cuts to Medicaid go into effect are UPMC Greene, Highlands Hospital in Connellsville, Fayette County, and Penn Highlands Mon Valley.

In July, Congress passed the spending bill, which will cut $911 billion in federal spending for Medicaid and CHIP over the next decade, according to estimates from the nonpartisan Congressional Budget Office.

Medicaid plays a major role in hospital funding, covering about one-fifth of all hospital spending, according to the health policy organization KFF.

If hospitals close or reduce services, it would make it harder for patents to get care – they would have to travel farther for services or wait longer in other hospitals – and put thousands of health-care workers’ jobs at risk.

Hospitals were considered at risk if at least 20% of their revenue comes from Medicaid and other low-income government programs, and if they have been losing money in recent years.

The report, released on March 31, looked at financial data from about 95% of U.S. hospitals between 2022 and 2024.

“Trump’s cuts to Medicaid will hurt millions of low-income and disabled Americans, and will deepen financial strains that are already plaguing rural and safety-net hospitals – compromising their ability to deliver care, potentially leading many to close,” said Eileen O’Grady, a researcher for Public Citizen and author of the report.

Some of the hospitals listed as at risk of closing due to the coming federal Medicaid cuts reject the report’s assessment of the impact on their hospitals.

“Recent news reports speculating that certain UPMC hospitals, including UPMC Greene, run the risk of closure because of recent Federal budget cuts to Medicaid reimbursement are based on a highly suspect and flawed analysis that failed to recognize that every UPMC hospital operates as part of the strong integrated UPMC system – not as standalone, individually operated hospitals,” said Paul Wood, Vice President and Chief Communications Officer of UPMC. “UPMC’s “systemness” allows each of our 40-plus hospitals to leverage systemwide resources, systemwide infrastructure, and systemwide expertise to help ensure their long-term stability, and helps our caregivers to continue to provide their patients with high-quality care.

“UPMC will continue to monitor and evaluate the potential impacts of Federal legislative and executive branch actions and will always be committed to supporting access to essential care for our patients across the communities we serve.”

At Penn Highlands Healthcare, Dave Trudell, System Director of Marketing, Communications and Sales, said the health system continues to recruit physicians and advanced practice providers and add or adjust services to help the health system grow, but acknowledged rural health care is “at a crossroads.”

“While the health system is committed to helping serve the community health needs, rural health care is at a crossroads, and rural health systems like Penn Highlands need additional funding and support from local, state and federal government to continue to provide care,” said Trudell.

Public Citizen’s analysis found at least one at-risk hospital in 44 states and Washington, D.C. The facilities labeled “high res” have about 69,000 beds and employ 275,000 medical workers.

Those hospitals serve a disproportionate number of Black and Hispanic patients as well as people living below the federal poverty line.

About 60% of the at-risk hospitals — 267 facilities — are in urban areas, while Black and Latino communities stand to be the most affected by the cuts.

The impact of the bill will take time to play out, but Public Citizen pointed to recent service cuts and layoffs as a hint of what may come.

In December 2025, Alameda Health System in Oakland, Calif., announced that it would lay off nearly 300 employees due to Medicaid cuts. The health system is projected to lose more than $100 million annually by 2030.

In January, Erie County Medical Center in Buffalo – the only Level 1 trauma center in the region – announced layoffs and unpaid furloughs of hospital staff, citing Medicaid cuts as a reason for the financial strain.

That same month, Teton Valley Health in Idaho announced it would lay off workers and close a clinic, citing Medicaid cuts among the reasons for the decision. And Trinity Health System, a Michigan-based hospital system which operates 92 hospitals, announced that it will lay off 10.5% of its revenue cycle management staff across 15 states, noting that “recent and future government funding policy changes” could lower its annual revenue by $1.5 billion.