DU QUOIN, Ill. — Governor JB Pritzker joined healthcare leaders from southern Illinois on Friday to discuss the effects of Trump-era federal budget cuts on rural hospitals and care providers. The budget cuts, spearheaded by Trump and congressional Republicans, reduce Medicaid coverage for working families and threaten the stability of hospitals nationwide, with rural hospitals projected to lose $155 billion in funding.
“Rural hospitals are a critical lifeline for communities across Illinois. They provide life-saving medical care and support local economies,” said Governor Pritzker. “With devastating Medicaid cuts, many rural providers could face closure, causing patients to lose care and staff to lose jobs. Illinois will work to mitigate these impacts and ensure rural areas remain healthy and thriving.”
The event took place at Marshall Browning Critical Access Hospital, one of 55 rural hospitals in Illinois serving underserved areas. During a roundtable discussion, local hospital CEOs and staff shared concerns about how the budget cuts could affect healthcare access in rural communities.
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The Department of Healthcare and Family Services (HFS) estimates over 270,000 Illinois residents could lose Medicaid coverage, and Medicaid spending in rural areas may decline by $6.36 billion. Many rural hospitals already operate on tight margins, and federal cuts could threaten their survival.
A study by the University of North Carolina’s Cecil G. Sheps Center for Health Services Research identified nine rural hospitals in Illinois at risk of closure, representing over 500 beds and 11% of the state’s rural inpatient hospitals. For four of these hospitals, the next nearest facility is more than 30 minutes away, further straining emergency response resources.
Rural hospital closures would also impact local economies, as these facilities are major employers. In fiscal year 2022, the nine at-risk hospitals employed approximately 2,532 full-time staff.
“Rural hospitals are lifelines for the communities they serve,” said IDPH Director Sameer Vohra. “They provide critical medical services and support economic development. Federal cuts could devastate Illinois’s rural communities. Under Governor Pritzker’s leadership, IDPH will continue to advocate for the health needs of our residents.”
“Standing up for rural hospitals means standing up for the communities that depend on them,” added HFS Director Elizabeth M. Whitehorn. “These federal Medicaid cuts will be devastating for rural communities and Medicaid patients. Our priority is mitigating the harm caused by these changes.”
Governor Pritzker has consistently traveled across Illinois to meet residents and address the federal budget cuts’ effects on healthcare, food assistance, social security, farmers, students, and small businesses.
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