While hospital closures in 2026 are pacing behind figures from 2025, many facilities remain on shaky financial ground.
From low volumes and looming federal Medicaid cuts under HR 1 to shrinking cash reserves and reimbursement losses, here are four hospitals Becker’s has reported on in the last month that are under financial strain:
Watsonville (Calif.) Community Hospital
During a Sept. 22 board meeting, Watsonville Community’s interim CEO said the hospital may not be able to sustain operations beyond the next six to 12 months without financial changes. The hospital lost $22.4 million in 2025 and $10 million in the last six months. It is facing a daily cash shortfall of $85,000, and it estimates an HR 1 impact will be $4 million to $6 million, and close to $100 million over the next 10 years.
In early October, Watsonville Community CFO Julie Peterson told Becker’s the hospital expects to meet October payroll obligations, but its August board executive summary said it is “difficult to forecast how the organization can meet its payroll and accounts payable obligations in the future.” The hospital also had $11.4 million in approved, outstanding accounts payable at the end of August, with 79% of its invoices more than 30 days old.
Elbert Memorial Hospital (Elberton, Ga.)
The 25-bed critical access hospital in September asked for a $250,000 contribution from the Elbert County board of commissioners to sustain its operations. The hospital also asked the city of Elberton to match the $250,000 contribution. While the city approved its contribution, the county funding request did not move forward, NBC and CBS affiliate WYFF reported Oct. 2.
Elbert Memorial Hospital CEO Tyler Taylor told WYFF in mid-September that without proper funding, the hospital will not survive.
“We would have to close,” Mr. Taylor told the publication, should proper funding not be approved. “We’ve shared that with the local government, and the winding down of the operations would take a minimum of 90 days to somewhere between 90 and 120 days.”
Becker’s has reached out to Mr. Taylor for comment and will update this story should more information become available.
Mount Nittany Medical Center (State College, Pa.)
Mount Nittany Medical Center is working to restore its sole community hospital designation, and estimates the loss will cost it approximately $15 million annually.
CMS terminated Mount Nittany’s SCH designation in April. The hospital filed a lawsuit in June challenging the decision, which was estimated at the time to reduce Medicare reimbursement by approximately $9 million annually.
The revised estimate is a reflection of ongoing analysis around the designation loss, affecting reimbursement of inpatient and outpatient services, including payments from traditional Medicare and Medicare Advantage plans, the hospital said.
Lane Regional Medical Center (Zachary, La.)
In late September, a spokesperson for Lane Regional told Becker’s the 131-bed hospital is evaluating service line adjustments but is not closing. Lane Regional eliminated 14 positions Aug. 6, which included leadership and physician roles, to help support its long-term financial stability.
The hospital also ended allergy, asthma and immunology services Sept. 4, and the hospital’s board in late July approved the exploration of a strategic affiliation with another healthcare organization.
