A Mid-Michigan hospital is among four in the state now facing a heightened risk of service reductions or closure, due to Medicaid cuts included in the newly signed "One Big Beautiful Bill Act."
Sparrow Carson Hospital, part of U-M Health-Sparrow, serves more than 13,000 emergency patients each year. But it's now listed as being at high financial risk, according to the Cecil Sheps Center for Health Services Research.
The new law, signed by President Donald Trump, reduces Medicaid funding nationwide while including $50 billion in aid for rural hospitals over five years. However, some hospital advocates say the funding falls far short of what is needed to offset the cuts.
“Spread over five years, that’s $10 billion a year,” said Laura Appel with the Michigan Health and Hospital Association. “Let’s put that in context—Michigan hospitals alone are facing $6 billion in cuts over 10 years.”
Appel also noted that not all of the $50 billion is guaranteed to go directly to hospitals.
“It is not reserved to hospitals alone. It could also be paid out to entities such as federally qualified health centers and certified community behavioral health centers, as well as other types of rural entities.”
Supporters of the legislation, including Republican lawmakers, argue that the measure is necessary to reduce the national deficit and push states to manage Medicaid programs more efficiently. The Congressional Budget Office estimates the law could trim federal Medicaid spending by $1 trillion over the next decade.
