As Congress deliberates sweeping cuts to the Medicaid program, Livonia, Mich.-based Trinity Health leaders are warning that reductions could cost the system up to $1.1 billion across its 93 hospitals.
In meetings with lawmakers in Washington, D.C., Trinity Health President and CEO Mike Slubowski emphasized the potential ripple effects of Medicaid cuts, stating that as funding decreases, the number of uninsured patients is likely to rise, forcing nonprofit hospitals to make difficult cuts to services and staff, according to a May 6 LinkedIn post from the health system.
Trinity Health is not alone in its concerns. Several health system CFOs recently traveled to Washington, D.C., to advocate against proposed Medicaid cuts, warning that such reductions could destabilize hospitals and jeopardize access to care for vulnerable populations.
Republican lawmakers’ budget resolution seeks to reduce federal spending by up to $2 trillion over the next decade and orders the House Energy and Commerce Committee to identify at least $880 billion in federal healthcare spending cuts — a figure many healthcare stakeholders expect will fall disproportionately on Medicaid.
Health system leaders warn that the proposed cuts could be catastrophic for hospitals, especially safety-net and rural facilities that rely heavily on Medicaid funding.
“There are a host of hospitals and health systems that are really struggling,” Brett Tande, CFO of San Diego-based Scripps Health, said during an upcoming episode of the Becker’s CFO and Revenue Cycle Podcast. “Even a small financial hit could push some over the edge, forcing drastic cuts — or in some cases, leading to insolvency.”
