Michigan hospitals at risk of closing if Trump’s ‘big beautiful bill’ passes

State officials from around the Great Lakes explain how Medicaid cuts will impact ‘Ganders—and the state’s economy.

Medicaid isn’t just helping keep 2.6 million Michiganders healthy—the program plays a critical role in supporting the health of our state’s economy as well. 

That’s why, back in April, Gov. Gretchen Whitmer signed an executive directive to identify the impact federal Medicaid cuts would have on ‘Ganders and their access to health care. 

According to the subsequent report, Medicaid patients in Michigan make up an average of 22% of hospital patient volume, and support a workforce of over 217,000 hospital employees. 

Additionally, the report revealed that the Michigan Health and Hospital Association is the state’s largest private sector employer, generating $77 billion annually.

However, if the Trump administration’s “Big Beautiful Bill” passes in its current form, state officials worry that health providers would see a steep increase in “uncompensated care,” which happens when people without health coverage get sick and can’t afford to pay their medical bills. That could spell trouble for hospitals and health systems in Michigan and across the US.

“[Uncompensated care] means hospitals and doctors no longer receive that income stream from Medicaid payments, and lots of them are going to be forced out of business. There’s going to be closures of hospitals, especially in rural counties,” said Josh Bivens, chief economist for the Economic Policy Institute. 

‘Ganders living in rural parts of the state already lack access to quality health care, and state officials worry that hospital closures will lead to higher mortality rates, increased health disparities, and more strain on the emergency care system across the state. 

In Northern Michigan, 75,000 residents across the region—including over 60% of births at Cadillac Hospital—are covered by Medicaid, according to Ed Ness, president and CEO of Munson Healthcare.

“In addition to impacting thousands of families who are already struggling, without adequate funding health care facilities like ours will face immense challenges in maintaining operations and serving our communities,” said Ness in a press release. 

On top of Michigan hospitals being at risk of closure and ‘Ganders losing access to critical care, the Trump administration’s “Big Beautiful Bill” would cut Medicaid by an average of over $70 billion a year—all while putting more money into the pockets of the wealthy through tax cuts.

“If you look at the tax cuts that will be received by just people making over $1 million per year, that is $70 billion as well. We’re going to take $70 billion away from poor families on Medicaid, and we’re going to give it to families who are making more than $1 million per year,” explained Bivens.

As the fight for Medicaid continues, Michigan legislators across the state are coming together to stand up for the health care of their constituents. 

“I’ve heard from countless constituents who are terrified that they may be losing essential benefits and care. Grandmothers raising grandkids with special needs, mothers who need prenatal and postpartum care, are at risk of losing coverage without warning,” said Rep. Rashida Tlaib (D-Dearborn) in a press release. 

“We cannot allow partisan cruelty to rob our communities of the care they need to survive.”

Public News Service contributed to this story.