Medicaid cuts raise worries for rural West Virginia hospitals

CLARKSBURG, W.Va. (WBOY) — With President Trump signing the Big Beautiful Act this past July 4, some are concerned about how the new law’s Medicaid cuts are going to impact hospitals in rural states like West Virginia.

Officials with the National Rural Health Association (NRHA) have said that the Big Beautiful Act is estimated to cut $1 trillion from Medicaid over 10 years. These cuts are made by putting restrictions on methods that states use to pay for Medicaid, such as provider taxes and state-directed payments. Officials also said work requirements and more frequent eligibility checks stand to introduce red tape and drop people off the Medicaid rolls.

The NRHA said rural providers are expected to lose as much as $155 billion in payments, which might mean hospitals will face difficult decisions in a couple of years.

“They may start to look at services like obstetrics or cancer chemotherapy services, dialysis, looking at services that they’re doing now that don’t necessarily reward them in terms of profit,” Brock Slabach, Chief Operations Officer of NRHA, said. “So they’re going to have to look to reduce services in order to be able to maintain the overall access of care, to care for people in their community.”

The NRHA pointed out that rural hospitals already face challenges as it stands, as the populations they serve tend to be smaller and demographically older, and therefore more prone to sickness. Officials said since 2010, 154 hospitals closed or have ceased operation of inpatient facilities, and the changes to Medicaid run the risk of closing more.

12 News has previously reported data that shows Broaddus Hospital and Grafton City Hospital are at risk of reducing services or closing with the passage of the Big Beautiful Act.

The NRHA noted that the effects of the Big Beautiful Act will not be immediate. “The bill does something that’s not uncommon in legislation. It front-loads the benefits and then back-loads the pain,” Brock Slabach said.

The work requirements for Medicaid expansion are slated to take place by the end of 2026, and states will have a couple of years to adjust to other changes to Medicaid.

The Big Beautiful Act does include $50 billion in the “Rural Health Transformation Program” for states to draw from over the next couple of years. While the National Rural Health Association said they were grateful for these funds, it noted that it’s just a third of the $155 billion rural providers are expected to lose.

12 News reached out to Broaddus Hospital and Grafton City Hospital on this issue. Vandalia Health, which Grafton City Hospital is an affiliate of, sent back the following statement:

We are aware of the changes made to eligibility for Medicaid which will impact many in West Virginia. Until we know the full plan and the potential effects on health care delivery, it is premature to make any potential changes to our services.

Our 13,000 employees and 2,000 providers remain committed to our mission of enhancing the health of our communities through clinical excellence, one person at a time.

Stay tuned to 12 News for updates on this developing story.