The implications of proposed cuts to Medicaid funding are beginning to reverberate among hospital leaders throughout Washington state. Many believe the cuts could present significant challenges for hospitals there.
The House Energy and Commerce Committee advanced a bill May 14 that aligns with President Donald Trump’s Medicaid cuts proposal, which aims to save $880 billion over the next 10 years.
In Washington state, Renton-based Valley Medical Center shared plans in mid-May to consolidate multiple services at its facility, a change that will affect 50% of its workforce due to private sector reimbursement, financial struggles and state and federal government funding uncertainties. In late March, the hospital was also forced to lay off 101 employees after federal Medicaid benefits halted without notice on Dec. 31.
“I think the danger is extreme in those in the rural communities, especially in eastern Washington,” Cassie Sauer, CEO of the Washington State Hospital Association, said during a May 15 press conference. “I think it is not outside the realm of possibility to see a whole hospital closure or a really significant shrinking,” she said.
WSHA estimates that Washington state could lose around $700 million in Medicaid funding annually, but Ms. Sauer believes that estimate might be low. While the trade group does not have a precise estimate of how many healthcare jobs could be affected by the cuts, Ms. Sauer said there’s “no question” that if services are closed, people will lose their jobs.
Beyond job losses, Ms. Sauer expects to see more closures in healthcare services like labor and delivery, physical and occupational therapy, dental, and mental health.
“Particularly out of the pandemic, hospitals have stepped into a lot of community health-facing [roles], and really are a safety net for their community,” Jacqueline True, vice president of advocacy and rural health for WSHA, said during the conference. “There’s also a lot of public health functions that we do … this is really talking about what is going to happen to communities when we cut out the safety net, and that’s what Medicaid is.”
