Gov. Pritzker Joins Southern Illinois Healthcare Leaders to Discuss Federal Impacts on Rural Hospitals

DU QUION- Today, Governor JB Pritzker joined the Department of Public Health, Department of Healthcare and Family Services, and healthcare leaders from southern Illinois to discuss the impacts of Trump’s budget cuts on healthcare across rural areas of the state. The budget bill from Trump and congressional Republicans slashes Medicaid coverage for working families and endangers the stability of hospitals and care providers; rural hospitals across the nation are projected to lose $155 billion in funding as a result of the bill.

“Rural hospitals are a critical lifeline for communities across Illinois. Not only are they one of the only providers of life-saving medical care for miles, they are often the backbone of rural economies,” said Governor JB Pritzker. “With Donald Trump and Congressional Republicans making devastating cuts to Medicaid, many of these rural healthcare providers will be at risk of closure, causing patients to lose care and staff to lose jobs. Make no mistake: Illinois will work hard to mitigate the impacts of these cuts. We will leave no stone unturned in ensuring that rural areas remain healthy and thriving.”

The event was hosted by Marshall Browning Critical Access Hospital, one of 55 critical access hospitals operating in rural Illinois focused on underserved areas. During the roundtable, other local hospital CEOs and staff shared their concerns with Governor Pritzker about the budget cuts’ impact on the rural healthcare communities in Illinois.

The Department of Healthcare and Family Services (HFS) estimates that 270,000+ Illinois residents will lose Medicaid coverage, with Medicaid spending in the state’s rural areas expected to decrease by $6.36 billion. With many rural hospitals already operating on tight margins, federal Medicaid funding cuts could irreparably damage the rural healthcare provider landscape.

According to an analysis by the University of North Carolina's Cecil G. Sheps Center for Health Services Research, nine rural hospitals in Illinois are at risk of closure due to federal funding cuts—a total loss of 500+ beds and 11% of the state’s rural inpatient hospitals. Many rural Illinoisans will be impacted by these closures, as healthcare would become less regionally accessible. For four out of the nine at-risk hospitals, the next nearest hospital is a 30+ minute drive away, straining the already scarce emergency response system resources in these regions even further.

Additionally, closures like these would result in devastating impacts on the local economies, with many of these rural hospitals serving as economic drivers for their respective regions. In FY22, the nine at-risk hospitals employed approximately 2,532 full-time equivalent staff in their communities.

“Rural hospitals are not just healthcare facilities,” said IDPH Director Dr. Sameer Vohra. “They are the lifelines for the communities they serve. Rural hospitals throughout Illinois serve as anchor institutions in their communities, providing both critical medical services and being a major source of employment and economic development. These federal cuts have the potential to be devastating to Illinois’s rural communities. Under Governor Pritzker’s leadership, IDPH will continue to work with our rural health leaders and other state and local partners to stand up for the health needs of our residents."

“Standing up for rural hospitals means standing up for the communities that depend on them,” said HFS Director Elizabeth M. Whitehorn. “We know that the newly enacted federal Medicaid cuts will be devastating for rural communities and for the Medicaid customers who rely on these hospitals for critical healthcare services. Our top priority is mitigating the harm that will most certainly be caused by these changes.”

Governor Pritzker remains committed to standing up for Illinoisans in the face of the federal government’s devastating budget cuts and the impacts on working families across the nation. Over the past few months, Governor Pritzker has traveled across the state to talk with Illinoisans about the ways Trump has harmed food assistance programs, healthcare, social security benefits, farmers, students, and small businesses.

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