Congressional leadership in Washington, D.C., is considering substantial cuts to health care, including the federal Medicaid program. Medicaid is a major source of health care coverage for Nebraskans in rural areas, with nearly half of enrollees living in rural counties. These potential cuts endanger both patients and the rural hospitals that serve them.
Nebraska hospitals provide high-quality care to all patients in every community. Hospitals are open to everyone, regardless of ability to pay, 24 hours a day, 7 days a week, every day of the year.
But hospitals are operating on razor thin margins, and many are still struggling to operate in the black. In Nebraska, 52 percent of all hospitals and 54 percent of all rural, independent Critical Access Hospitals (CAHs) are operating at a loss. The average operating margin was 2.2 percent for all hospitals and 1.4 percent for independent CAHs, well below a sustainable operating margin. This has already led to service reductions and eliminations for one in five hospitals, impacting crucial areas like labor and delivery and mental health services. When hospitals close or reduce services, patients are forced to travel longer distances for essential care, leading to delayed treatments and worse health outcomes. Further federal cuts would severely compound these difficulties, putting the future of these essential rural health care providers at risk.
