Virginia’s federal and state legislators are calling for greater transparency from hospital systems regarding the potential impacts of recent federal funding changes. During a healthcare roundtable in Franklin, U.S. Senator Mark Warner and Virginia House Speaker Don Scott expressed concern over the lack of public discussion by some hospitals about how the recent reconciliation bill could affect healthcare access and costs in the state.
Warner criticized certain hospital chains for avoiding open dialogue, accusing them of trying to hide their concerns behind closed doors while lobbying for support privately. Scott echoed these sentiments, suggesting that hospital leaders may feel intimidated by federal budget cuts driven by the current administration.
The lawmakers pointed to the potential negative consequences, including hospital closures, staff reductions, and gaps in healthcare coverage, especially in rural areas. One hospital of concern is Southampton Memorial, operated by Bon Secours, which could face service cuts or closure once the bill’s provisions take effect. The hospital, part of Virginia’s rural healthcare infrastructure, has been working to expand services since reopening in 2021.
Ballad Health’s leadership has been vocal about the risks, with officials warning of significant financial losses. The health system anticipates losing around $25 million in the first year following the implementation of the new funding rules. CEO Alan Levine has publicly criticized the bill, predicting it will lead to rural hospital closures.
The changes stem from federal funding mechanisms critical to hospital operations and Medicaid adjustments outlined in the legislation. Virginia’s Medicaid program, which serves approximately 1.9 million residents, could see around 600,000 beneficiaries losing coverage, mainly those who gained eligibility through expansion in 2018.
Additionally, the potential expiration of tax credits that help Virginians purchase insurance on the ACA Marketplace could lead to more uninsured residents, increasing emergency care costs and straining hospitals.
In response, local officials and healthcare advocates are strategizing to inform and prepare communities for upcoming changes. Discussions included proposals for hospitals to convert into urgent care centers if closures occur, and for state government to utilize surplus funds as a short-term safeguard.
Warner and Scott emphasized the importance of political action, with Warner advocating for the renewal of ACA tax credits to prevent coverage losses for hundreds of thousands of Virginians. They also criticized congressional delays in implementing these healthcare reforms until after the 2024 midterm elections.
The lawmakers remain hopeful about bipartisan efforts to address the bill’s repercussions, but warn that ongoing advocacy and transparent communication will be essential to mitigate the impact on Virginia’s healthcare system.