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KFF Health News: ‘One Big Beautiful Bill’ Would Batter Rural Hospital Finances, Researchers Say

June 21, 2025 - CHICAGO – On Friday, the American Medical Association (AMA) expressed concerns about the Senate jcf hospital 350reconciliation bill, citing cuts to Medicaid and CHIP funding and changes in eligibility criteria that will reduce patients’ access to care and impact physician practices’ viability, particularly in rural and underserved areas. Additionally, the AMA pointed to the exclusion of the House-passed effort to connect Medicare physician payment to the cost of running a practice. 

John C. Fremont Hospital, Mariposa, California

“Patients across the country are already struggling to access care,” said AMA President Bobby Mukkamala, M.D. “Physician burnout, early retirements, and, with the cost of running a practice constantly rising, the challenge of keeping a practice financially afloat are contributing to a physician shortage expected to reach 86,000 by 2036. By changing Medicaid and CHIP eligibility criteria, reducing their funding, and eliminating the Medicare payment provision included in the House-passed reconciliation bill, this legislation risks making matters worse for an exceptional number of people including seniors, pregnant women and persons with disabilities. Limiting access to a physician does not make patients healthier; in fact, it increases the risk of turning acute, treatable issues into costly chronic conditions. As work continues on this bill, we urge senators to listen to patients and physicians before making changes that reduce access to care.” 

The AMA’s full letter to Senate leaders is available here (PDF).
Source: American Medical Association

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